Finding the right amount of business insurance coverage can be tough. If you get too little coverage, then you're left exposed to many different risks that you would have to pay out of packet. If you have too much coverage, then you're losing money each month to premiums that are higher than they need to be. Here are some ways to balance these different needs to find commercial insurance that covers your biggest risks while also staying affordable.
Limit Disability Insurance Payouts
It may be important to you to provide disability insurance coverage for you and your employees, but a full salary coverage plan can become a money-eater quickly. Instead, you may want to consider picking a plan that covers cost of living rather than salary costs in its coverage. You can reduce the cost of this part of your plan while also provide employees with assurance that they will be taken care of in an emergency.
Increase Your Property Deductible
Another thing that you can do to balance out your business insurance rates is to increase deductibles. Property is a good area to do this. You're not jeopardizing any person by cutting coverage to your building or office equipment. And if you have a high deductible here, it gives you some flexibility in deciding whether to pay out of pocket to replace equipment, to work with what you've already got, or to go in a different direction and get completely new equipment to meet your business needs.
Invest in Making Your Business Safer
You may be thinking of ways that you can reduce coverage, but another thing that you can do is simply invest in processes that will reduce your rates in the long run. For instance, if you can implement new safety measures and training programs in your company, you will help to reduce you business risk. You may also be able to make your property safer by adding railings and other safety equipment. Some insurance companies will evaluate your business insurance rates based on how safe your operations are. So by adding new safeguards to your business, you may be able to reduce your risk rating and get lower premiums.
In short, you don't have to choose between cheap premiums and comprehensive commercial coverage. If you're smart about which risks you insure and which you take on yourself, then you can find a good balance in your business insurance. Talk to an insurer, like Western Reserve Group, for more help.