Protect Your Family with a Fire Extinguisher

Posted on: 14 December 2015

As a business owner, you surely understand why it is important to carry commercial insurance. Various types of insurance coverage can protect you from potential lawsuits, can protect your commercial building, can help you ensure that you are compliant with local laws and more. Therefore, the idea of dropping your coverage is probably a big no-no.

However, you might wish that you did not have to pay out as much in commercial insurance premiums as you do. You might fear that there is nothing that you can do about the situation, but if you determine the causes of your high premiums, you might find that there are changes that you can make that will help you save money.

1. You Don't Have All of Your Coverage Through the Same Provider

For maximum savings -- and to streamline the process of making claims, making changes to your coverage, and paying your premiums -- it is ideal to have all of your business coverage through the same company. Preferably, you should even have your business insurance coverage through an insurance company that you have a personal relationship with due to you own personal coverage. Using the same insurance company for everything can help you enjoy bundled and multi-policy discounts that can save you a significant amount of cash.

2. You Are Employing the Wrong Employees

Are you aware of the fact that your employees can actually affect how much you pay in commercial insurance? For example, if you have an employee on staff who has a poor driving record and who drives your commercial vehicles, you have to worry about him or her causing your insurance to go up. Be careful about who you employ, and if you have any questions about whether or not an employee might cause your rates to rise -- such as if the person has a criminal record -- you should consider talking to your insurance agent.

3. You Have Too Much Coverage

It might seem like there is no such thing as having too much coverage to protect your business, but the truth is that you can have too much coverage. Remember that your building will not be covered for any more than it is worth -- no matter how much insurance coverage you have -- and adjust your coverage accordingly. Also, consider raising your deductibles if your business has enough of a cash flow to cover them if needed.

As you can see, there are a few potential reasons why you are paying too much for commercial insurance. If any of these things apply to you, it's time to make some changes so that you can save your company money.