If you are a small-business owner, then chances are you will find yourself struggling at some point during these depressive economic times and you will need to look for ways to cut costs. Now would be a good time to check out ways that you can save money by examining your insurance policies.
People often overlook their insurance policies and their costs, but you can often save more than you expect if you examine your policies closely and put some time into reviewing how much you spend and for what. Most business owners purchase car insurance, workman’s compensation insurance, etc. when they first open up their business and then they just pay the policy every month for years without ever stopping and considering if that policy needs to be updated. Perhaps you have changes that have occurred within your business such as having fewer company drivers (which can change your car insurance premium) or maybe you have installed safety features within your business (which can save money on your accident insurance policies).
Ask about discounts
Consult with your insurance companies about any new discounts that may be available for your business. Many times there are lots of discounts that you can benefit from, but your insurance company doesn’t just tell you about these discounts. By simply asking what discounts are available for your insurance needs, you may find that you can save a substantial amount of money. Talk to your insurance agent and thoroughly go over every possible discount until you’re sure you’re getting the best deal you can.
Shop around to make sure you are getting the best deal for your money. Many different companies will offer the insurance products that you need, and they will have different prices, discounts, and opportunities for you to save. By making a few phone calls you may find a much better deal at an insurance company that you have never dealt with before. If you really like your current insurance provider, you can ask them to match the prices quoted by another company, which could give you the best of both worlds.
Raise your deductible
Consider raising the deductible of your insurance policies. If your existing car insurance policy has a deductible of five hundred dollars, inquire about changing that deductible to a higher amount. You will be surprised at just how much money can be saved, simply by increasing your insurance deductible. However, only do this if you can afford to pay that deductible. Your business shouldn’t ground to a halt because you can’t pay to get the car fixed after an accident. Either put the extra money saved by raising your deductible into an emergency fund or have someplace where you know you can quickly get the money in case of any issues.
It is impossible to know just when the economy is going to improve to the point when business owners will not have to keep an eye on every penny, but until it does, cutting back on insurance costs is just one way that you can save your company some money and ensure you have the adequate cash flow needed to sustain day-to-day business operations. Just by simply taking the time to evaluate your insurance needs and what areas can be changed in order to save some money will be worth it for you and your small business.
Gina Hamilton is an insurance consultant and content contributor for Kanetix. Check here to get a Kanetix car insurance quote or check the latest news affecting U.S. and Canadian insurance, like optimistic business conditions in Canada.