Businesses face various risks each day. One lawsuit or catastrophic event could be enough to wipe out a small business before it even has a chance to get off the ground. Commercial insurance, also called business insurance, helps protect your business from financial losses resulting from lawsuits, property damage, workplace injuries and illnesses, loss of income, theft, and vandalism.

Types of coverage you may need, include:

Professional liability insurance, also known as Errors and Omissions (E&O) Insurance
• Property insurance
• Workers’ compensation insurance
• Product liability insurance
• Business interruption insurance
• Commercial auto insurance
• Home-based business insurance
• Cyber liability insurance

A business that is underinsured either from having the wrong coverage or insufficient coverage faces various financial and or legal risks that could threaten its survival after a loss. Cost of insurance is one of the reasons business owners cite for having sufficient insurance coverage for their business. So how do you save money on your commercial insurance? Here are a few tips:

Shop around to compare rates

Prices from various insurance providers will vary. So it pays to shop around as you could find considerably lower rates than what you’re currently paying without having to change your coverage. Research insurance companies or brokers that specialize in your type of business

and call several to compare prices and find out more about the services they provide. But check to see if your carrier offers loyalty bonuses before making your decision.

Note: It’s also crucial to check whether a company is reputable and if it’s financially stable to avoid stormy times ahead when you need a claim paid.

Increase your deductible

Typically, the higher your deductible, the lower your annual or monthly premium rates. A deductible is the amount of money that you pay toward an insured loss before your insurance coverage kicks in, and the insurance company starts to pay. However, remember to set your deductible at an amount you can afford to pay as you will not receive money from your insurance company until you pay your deductible in full.

Evaluate your protection and your risks

First, determine which types of insurance are required by your local laws and lease. Second, pinpoint the kinds of losses common to your type of business. And lastly, take a thorough look at your policy and make sure you don’t have any coverage you don’t need. For instance, if you don’t use a vehicle for your business, you likely can settle for the best cheap car insurance you can find that qualifies as personal, and don’t need commercial auto insurance.

Bottom line: Make sure you’re not insuring yourself for a risk you don’t face.

Consider buying a package policy

A package policy is a type of insurance policy that includes more than one kind of insurance coverage, such as a business owner’s policy (BOP). Package policies are often significantly less expensive than individual coverages. So if you can find a package policy that provides standard coverages and limits of liability that are appropriate for your business, go with a package.

Ask about Discounts

Ask your insurance agent or broker about what discounts are available with the policy and which ones you may qualify to receive. Enough insurance policy discounts could mean a significant reduction in insurance premium rates. If you are shopping online, read about all of the discounts available in the information provided on the website. If necessary, call the customer service number listed to find out more information.

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