Here are some tips to help ensure your business insurance payments are worth the price you pay.

Most people seem to enjoy a love-hate relationship with insurance. On the one hand, you understand that insurance exists to protect you against catastrophic losses. Without insurance, we would be financially destroyed if something unthinkable happened – like a lawsuit from a customer who was injured due to our negligence, or theft of an expensive piece of equipment. In cases such as these, the insurance policy kicks in and covers the expenses you incur to rectify the situation and “make you right” again – legal fees, settlements, property replacement value, etc. And when this happens, boy are we glad that we have those insurance policies waiting to come to our rescue!

On the other hand, you do have to pay those monthly premiums, without knowing if you will ever need to use the policy coverages. While you should be grateful to never have to use an insurance policy, it may feel you’re throwing your money into the trash every month when that payment is made. But you dare not stop making those payments, because Murphy’s Law reminds us that, the minute you do, something will happen and you will need it.

How to Lower Business Insurance Premiums

To help soften the sting of the monthly premium, here are some tips that can keep your premium lower:


  • Make sure that you are not OVER-insured. You’d be surprised how many small businesses have too much insurance, and therefore are paying too much premium. For example, many general liability policies will automatically include automobile coverage. But if you already have a personal auto policy, then you may not need the extra coverage (or the extra premium charges!).
  • Conversely, make sure you are not UNDER-insured! If you have risk areas of your business that are not covered by insurance, then you may be in for an unpleasant surprise if something happens and your current policies don’t cover the damage. Not only have you wasted your money on monthly premiums that don’t ultimately do anything, but now you have a financial loss that must be covered. Make sure your money is well spent!
  • Inform your insurance broker of any key changes in your business. If you have hired more employees, reduced your workforce, purchased some new equipment, gained several new contracts, moved your office, etc…your insurance broker needs to know so your insurance policies can be adjusted accordingly! Every change in your business exposes you to different risks, so make sure your policies are up-to-date.
  • Don’t have conversations with your Broker in a silo – include your attorney and accountant. They can help to further identify potential risk areas for your business and ensure that your policies make the most sense for your unique situation.Bottom line: Make sure you periodically review your policies with your Insurance Broker to ensure the coverages you have make sense. If you like some help in kicking off the discussion with your Broker, please contact us! We are experts in helping Insurance Brokers work with you to ensure you are adequately covered. Contact us today for a free consultation.