subject: Five Tips For Securing Affordable Business Insurance [print this page] Before we even go any further, we need to realise that every business is different, and as such, all businesses have different insurance needs. While some business owners only require a very basic level of cover, others require a policy which is tailored specifically for the type of business they run.
Businesses in this group in particular need to exercise a great deal of care when it comes to insurance, bearing in mind that your insurance may one day be all that stands between you and disaster. Rock solid insurance does cost money, but there certainly are some steps you can take in order to keep the costs down.
1 - Putting All Your Policies under a Single Umbrella:
Insurance companies want your business, and that's a fact. In order to encourage this, practically all insurance companies will offer substantial discounts to those who choose to place all their commercial business insurance needs with them. Not only do you save money when you use one company for all your needs, but it's also far easier to keep track of things.
2 - The Higher the Risk - The Higher the Premiums:
This is what forms the very foundation of the insurance industry. If your business premises are poorly secured, in that thieves will be able to gain entry without much effort, insurance companies will see that as being high risk. The same applies to any commercial vehicles you may have, in that they should all fitted with suitable anti-theft devices. Your business premises should also have a professionally installed fire detection system, together with a sprinkler system and several extinguishers. Failure to meet these criteria not only ups the risk factor, but it also causes insurance companies to see you in a bad light.
3 - Push for Additional Discounts Relentlessly:
It's safe to say that the vast majority of insurance companies offer a wide range of discounts. Yes, they offer discounts if you install things such as CCTV and blinding security lighting, but they usually have other discounts on offer as well. For example, your business may have some or other agreement with a particular organisation, which in turn could see your rates being reduced. These are things you need to discuss with your potential insurance provider. If they sense that you may very well decide to take your business elsewhere, you'd be surprised just how often they'll agree to further discounts.
4 - Tread Carefully When Discussing Excess Amounts:
The cost of commercial insurance can be significantly reduced simply by increasing the excess amount. While this may seem like an ideal option, it's something you need to think very carefully about. Remember, this is the amount of money you'll have to pay before your insurance company even listens to your story because that's the amount you'll be expected to pay before your policy actually kicks in.
5 - Treat Salesmen and Saleswomen with Caution:
No, they're not all dishonest people, but many of them can be incredibly convincing, particularly if you're quite a soft natured person who doesn't like to say no. When it comes to insuring your business, you need to hold your ground no matter how pushy a salesman gets. Until you're absolutely certain you've had enough quotes from different companies, don't agree to anything. You need to compare prices from several companies, and of course you should compare any differences in the various policies as well.
If one company is offering noticeably more business insurance cover than another, and yet there's only a small difference in price, then going for the more expensive of the two may very well be in the best interest of your business. After all, knowing your business is fully protected is more important than price alone.
by: Tom Jones
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