The Essential Guide to Reducing Your Business Insurance Premium

With so many dependencies contributing to your business’ success, having the suitable commercial insurance in place is a vital form of protection should something go wrong. Although premiums can be expensive, your insurance policy could save you overwhelming legal costs or liquidation. However, in order to help you keep costs down, here are some ways in which you can lower your premium whilst still getting the right amount of cover required:

Correctly identify your business

You may end up paying more for your commercial insurance if you incorrectly classify your business — for instance, claiming to be a supermarket when you are a small food store. However, when shopping around (and do shop around), it’s crucial to ensure that you have adequate cover. Be sure to thoroughly check that any policies and their conditions offer the correct cover for your business needs. Although prices are important when choosing your commercial cover, getting the best fit for your business and using a quality provider, may mean you’ll be paying less in the long run. Once you’ve found a provider that offers sufficient coverage you can always ask for available discounts.

Increase your excess

Increasing your excess will lower the cost of your premium. By increasing your excess you’ll show insurance companies that you’re willing to pay for a certain amount of the insurance should there be a need to make claim. If you’re a small business you may not be so comfortable with a paying high deductible up-front, so only offer an excess of what you can reasonably afford.

Think about enhancing your security

Updating your workplace security, such as your burglar and fire alarms, will also help to lower your commercial premium. Your insurer will factor these measures in as you being at lower risk of damage or loss. It’s also advisable to regularly review your security, as well as your health & safety procedures, in order to reduce the likelihood that you’ll need more expensive cover.

Your business needs are constantly changing

Keep an eye on your insurance policy, as cover you previously needed may no longer apply with the changes to your business and industry. You could be overpaying for coverage that isn’t needed, or you may be paying for something you are already paying for elsewhere. As the demands of your business change, so should your insurance; the insurance market is constantly changing and so it is not uncommon to see a policy becoming much more restrictive or significantly more expensive at renewal after a year. Therefore, methodically review your policy on a regular basis and ask your insurance provider about any changes in your business and rate adjustments.

If you’d like any more information about finding the best insurance for your business, you can contact the experienced team at P & W Insurance. P & W Insurance is a commercial insurance specialist and provides the right flexible coverage for a wide range of businesses, at the right price. Please call 01252 343822, email or use their online contact form.