How to Reduce Small Business Insurance

How to Reduce Small Business Insurance

Editor's Desk: This is a guest post by Ryan Sandberg

New small businesses need to closely compare the business insurance quotes pertaining to all the segments of insurance, from general liability to worker’s compensation and employment practices insurance. But it is safe to say that sticking to one insurance company for all your business needs would save much needed time, money, resources, and hassles. And what new business wants to deal with the hassles of running their business when they're living on hot dogs and macaroni and cheese instead of those five dollar lattes? While the business insurance premium works to protect any business from specific operational losses depending on coverage type, some insurance companies do not offer every type of business insurance.

 When choosing to stick with one company, it is imperative that each small business select the types of business coverage they need most immediately. Even in withstanding the smallest budgets, small businesses should find the company that can take care of their immediate insurance needs at a competitive price. To say price comes last in the puzzle might sound a little scary at first, but if you stay away from key business insurance shopping don’ts and then follow five musts’, shopping for small business insurance becomes a walk in the park. You might just have money for the five dollar latte just done the other block.

The first main don’t for small businesses is to think that only large businesses can afford insurance and that really only the largest corporations really need business insurance. Every single business needs business insurance to protect their assets, resources, employees, and profits. The second biggest mistake is trying to reduce your premium by providing confusing, conflicting, misleading, or incorrect information to your insurance company. Unfortunately, it only takes one claim for an insurance company to find out even the smallest of businesses withheld important information only to reduce their rates and save a few bucks. Thirdly, never let your company’s insurance policy lapse because of non-payment of premiums. Always maintain a good working relationship with your insurance company and see how they can help you if a rough financial strife.

Even though they probably have heard that old economy excuse just a few too many times, they might just be willing to break a few rules to make your business happy. Although worker’s compensation insurance is a necessary type to purchase, consider implementing mini-employee training sessions on workplace safety and sexual harassment. Finally, depending on the location of your business, evaluate whether flood, earthquake, or tornado insurance should be purchased as well.

Some of the top things you need to consider when accumulating various business insurance quotes are what other things you can do for your business besides having good insurance:

1. Strive to maintain the safest working environment for your employees through making the workplace assessable to all, having comfortable chairs, and proper working space.

2. Like stated earlier, find an agent from a company that can take care of all your business insurance needs at one time.

3. As your business continues to grow, change your business insurance to match the size of your business.

4. Have your agent visit your business. This way the agent can get an idea of how your business functions and provide you with the best suggestions.

5. Consider providing your employees with health care insurance if at all possible.

If you’re half as smart as you think, check out this business insurance quiz to see if you’re ready to choose the right insurance for your business. Once you’re quizzed out, feel free to get quoted out on business insurance quotes for small business and then go ahead and contact that one agent to satisfy all your business needs.

 



Insurance: A Guide

"Remember kids, I have life insurance" - Adam Savage

This is a guest article from Tatyana Levin

These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).

 The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.

A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed.  But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.

Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.

 These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason.  The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.

The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.

About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com