11 ways to save money on your business insurance

Business insurance helps small business owners manage everyday risks, from property damage and liability claims to business interruptions and cyberattacks. Without it, you may need to pay out of pocket for repairs, replacements, or legal expenses.

However, for many small businesses, managing risk goes hand in hand with managing insurance costs. You don’t want to leave yourself vulnerable to unexpected bills, but you also don’t want insurance costs to break the bank.

To strike this balance, you may need to consider ways to manage the cost of business insurance while keeping your business resilient.

1. Review your business activities

Business operations evolve over time. Look at the services you provide, and consider any new lines or discontinued operations. Ensuring your cover matches your current activities could help you avoid paying for unnecessary insurance.

Recommended reading: 5 things to consider when purchasing business insurance

2. Conduct a comprehensive risk assessment

Identify potential threats, such as property damage, cyber incidents, supply chain disruption, or employee injury. Understanding risks allows you to choose cover that is relevant to your business needs.

3. Follow a risk management plan

Document and follow procedures for safety, compliance, and operations. Risk management systems can help reduce incidents and may lower insurance premiums over time.

4. Review your policies regularly

Policies can become outdated as your business grows or changes. An annual review ensures your insurance remains aligned with your operations, coverage limits, and risk profile.

5. Maintain a good claims history

Fewer claims generally lead to lower premiums. Implementing staff training, regular maintenance, and safety checks can help reduce the chance of costly incidents.

6. Consider higher excesses or deductibles

Most insurance policies include an excess—the amount you pay out of pocket before the insurer pays the rest (up to the policy’s limit). Increasing your excess could help reduce your premiums. However, make sure the excess is an amount your business can afford if a claim arises. Balancing premium savings and financial capacity is key.

7. Bundle your policies

Combining multiple covers can help lower total premiums and simplify administration. For example, BizCover offers a Business Insurance Package, which bundles Public Liability with 14 cover options, such as Building, Contents, Portable Equipment, and Business Interruption.

8. Only cover what you need

Avoid paying for cover you don’t require, as it could increase your premiums. Tailoring policies to fit the size of your business (often measured in annual turnover), industry, and risk exposure may help. This helps ensure cost-effective protection without unnecessary extras.

9. Invest in technology

Modern tools—such as CCTV, cloud backups, fire alarms, and security systems—could help you avoid different types of claims. Technology can prevent losses and demonstrate to insurers that you manage risks proactively.

10. Shop around and compare quotes

Insurance rates and offerings change over time. Comparing quotes from multiple insurers may help your business find appropriate cover at a price that fits your budget.

11. Beware of underinsurance

Underinsurance happens when you do not have adequate insurance limits or the right types of insurance to cover losses when you make a claim. It’s a major risk for many small businesses.

If a policy’s limits are too low, a claim may not fully cover losses, leaving your business exposed. Regularly review sums insured and adjust them as your business grows or your operations change to help avoid falling into the underinsurance trap.

Lower costs don’t have to mean lower protection

Reducing premiums does not necessarily mean cutting essential cover. Strategies such as bundling policies, increasing excesses, or selecting only necessary cover can help lower costs while keeping your business adequately protected.