7 ways to save on business insurance

Cutting costs is one way that business owners increase profits. You’ve probably gone through your budget with a fine-tooth comb, looking for ways to save on everything from office supplies and tools to rent and utilities. But have you applied any savings strategies to your business insurance?

It may not seem like there’s any wiggle room when it comes to protecting your business, but you might be surprised! There are ways to save on insurance premiums without sacrificing your peace of mind.

Here are seven ways you could save money on business insurance:

1. Review your risks

Before you start shopping for business insurance, you should have a good idea of what types of policies you’re looking for. Making a list of potential risks could help you sort out what you may need so you don’t pay for coverage that doesn’t fit your small business.

Here are some questions to help you get started:

• What does your business do? Do you offer a custom service or product?
• Where do you work? (In an office, at home, in a retail shop, restaurant, etc.)
• Do members of the public visit you at your workplace? (Customers, clients, vendors, delivery people, etc.)
• Do you regularly meet with clients or customers at their place of work or a third-party site?
• Do you use internet-connected devices or online services to run your business (email, online payments, cloud storage, etc.)?
• Do you rely on special equipment or tools of the trade to do your job?
• How long could you continue to pay the bills or your staff if you had to temporarily close your business?
• Are you required by law, a professional association, or a business contract to have certain types of cover?

Recommended reading: 5 Things to consider when purchasing business insurance

2. Shop around

Insurance companies use complicated algorithms to help them assess a business’ risks and calculate policy premiums. And since every insurer is different, you might get different quoted premiums from each. Shopping around could help you find a policy that suits your small business needs at a price that makes your wallet happy.

Did you know? BizCover makes it easy to compare quotes from different insurers. Just enter your business details once, and you’re on your way!

3. Consider a Business Insurance policy

Insurers sometimes bundle different types of cover into a single insurance policy. Not only is this convenient for you, but it could also cost less than taking out separate policies. Business Insurance is one such product—combining Public Liability with coverages such as Buildings & Contents, Business Interruption, and Tax Audit.

Did you know? You can customise your Business Insurance package to include just the coverages you need or want.

4. Pay for your policies annually

Paying an entire year’s worth of premiums is typically cheaper than paying by the month. This strategy may challenge your short-term cash flow, but it could equal significant savings if you can swing it. Paying policy premiums just once a year also reduces the number of debits coming from your bank account, potentially making it easier and quicker to spot fake charges.

5. Have a risk management plan

Making a claim is one reason why insurance premiums can increase from year to year. Doing everything you can to avoid them could help keep your insurance costs under control. A risk management plan outlines steps you and your employees can take to prevent accidents, mistakes, and other events that could lead to a claim.

Did you know? A risk management plan can cover just about any part of running a business, like cleaning and hygiene standards, handling angry customers, and recognising cyberattacks.

6. Don’t focus on cost alone

Many small budgets run under tight budgets. While it might seem like choosing the cheapest insurance policy or reducing your level of cover are excellent money-saving ideas, they could end up costing you! The lowest-priced option or reduced cover may not provide the best coverage for your business. This could leave you with more expenses come claim time, completely erasing any money you “saved” on your premiums.

Beyond looking at price, you may want to consider these and other factors when choosing business insurance:

• What are the terms and conditions? When are you covered—and when aren’t you?
• What level (amount) of coverage is appropriate for your business size and needs?
• What are other business owners saying about the insurer online, in reviews, or by word of mouth?

7. Let your insurer know about business changes

Changes to your business could mean that changes to your business insurance are in order! Some changes might even result in your premiums being lowered, such as moving to a safer location, putting a risk management plan in place, or removing a service from your customer offering.

Even if a change causes your premiums to increase, that isn’t always a bad thing. As we’ve already mentioned, having the right cover for your business may be more important than having the cheapest cover.

Ready to find business insurance?

There are many ways that you could save money on business insurance. Knowing what cover you may need, comparing policies, and taking steps to avoid unnecessary claims are just some of examples of how this can be done. If you’re able to put one or more of these strategies in place, you may be able to protect your small business without sacrificing your peace of mind!

Jump onto the BizCover website or give us a call on 1300 920 864 to learn how simple, quick, and easy buying small business insurance can be!