First for Women: Top Tips for Managing Your Business Insurance Costs

As a business owner, whether you’re a seasoned entrepreneur or just starting out, you know that unexpected events can happen at any time. From natural disasters to lawsuits, these events can threaten the survival of your business. More often than not, it’s not a matter of whether something will happen but when it will happen. At First for Women, we understand insurance for business and what a daunting task it can be to find affordable yet comprehensive coverage that meets the unique needs of your business. 

This blog aims to provide valuable insights into factors to consider when choosing business insurance and how to lower business insurance costs so that your business is properly protected without breaking the bank.

Understanding what type of business insurance cover you need

Protecting your business is a top priority, and having the right insurance in place is crucial. However, navigating the different types of insurance available can be overwhelming, and determining the coverage you need can be challenging. As a broad guideline, you need to avoid under-insurance[1] and ensure that you have sufficient coverage to protect your specific business.

If you're wondering what sort of insurance for business — or a combination of different commercial insurance products — is right for you, here are a few considerations to help guide your decision. First, examine the type of industry you’re in and the potential business risks involved. Consider the employees who work for you and how they could be affected if something goes wrong. Lastly, assess the assets in your possession that are essential for the operations of your business and make sure they’re protected.

1. Know your risks

Before you start shopping around for business insurance, it's important to understand the business risks you face. This will help you identify the types of cover you need.

2. Shop around

Once you’re aware of your business risks, you can start shopping for the right insurance policy. First for Women offers insurance coverage designed to meet the needs of women in business and female entrepreneurs. 

3. Read the fine print

When you've found an insurance policy that meets your needs, be sure to study it properly before buying it. This will help you understand exactly what your policy doesn't cover.

8 tips to manage business insurance costs

As a business owner, you are always looking for ways to reduce costs and save money. When it comes to insurance, there are a few things you can do to help manage your costs.

1. Look for comprehensive insurance packages 

Business insurance can be a costly investment for any business, but it is important to remember that insurance is an essential part of successfully running a business. There are several different types of business insurance, and it's important to choose a policy that covers all of your bases. One way to save on business insurance costs is to look for comprehensive insurance packages. These types of policies will often cover various risks (for example, business interruption insurance and public liability insurance) so you can be sure that your business is protected. Another benefit of these types of policies is that they can often be customised to fit the specific needs of your business. When shopping for business insurance, it’s sensible to compare quotes from various insurers. This will help you get the best possible rate on your policy. You should also consider the coverage options that each insurer offers before making a final decision.

2. Look for business insurance group rates

 Business insurance group rates refer to the premiums offered to a group of businesses that are part of an association or organisation that has negotiated a group insurance policy with an insurance provider. The group policy typically covers a specific type of insurance, such as public liability or property insurance. It offers a lower premium rate than if each business were to purchase a policy independently.

The insurance provider may offer group rates because they can spread the risk across many businesses, leading to lower premiums. Additionally, group policies may have standardised coverage and underwriting guidelines, which can simplify the insurance process for both the insurance provider and the businesses.

Group rates can benefit small and medium-sized businesses that may not have the bargaining power to negotiate lower rates independently. However, you need to review the terms and coverage of a group policy carefully before committing to it, as it may not meet all of your specific insurance needs.

3. Get help from a business insurance broker

Working with a broker or insurance consultant who can help you to manage your business insurance costs better  in several ways. First for Women has a great team of experts ready to help you build your business insurance portfolio. They have access to a wide range of competitively priced policies, which means you can compare different coverage options and find the best fit for your business needs at an affordable rate. They also understand the complexities of the insurance market, so they can provide advice on how to structure your policies for maximum benefit and cost savings. 

4. Change your insurance deductibles

Changing your insurance deductibles can help manage your insurance costs by giving you more control over what you pay out of pocket when a claim is made. You can increase or decrease the deductible amount, resulting in lower or higher premiums. Increasing the deductible means the premium will be lower; however, if a claim is made, the cost to your company will be higher because more money will have to be taken from your company's cash reserves. Decreasing the deductible increases premiums while decreasing the funds needed for claims should one occur. By choosing an appropriate level of risk tolerance, managing deductibles can help your business manage financial exposure while balancing cost savings opportunities through affordable coverage options.

5. Modify your insurance payment method

There are several different insurance payment methods available. Some of the most common payment methods include the following:

Annual payment: This is the most traditional and straightforward payment method for business insurance. The policyholder pays the entire premium for the year upfront, and the policy remains in effect for the duration of the policy term.

Monthly payment: Some insurance providers may offer the option to pay premiums every month. This can help businesses spread out the cost of insurance over the course of the year.

6. Ensure your business has a good credit rating

A good credit rating[2] can help reduce insurance costs, as some insurers use it to determine the risk of insuring a particular business. Insurers may consider a business's credit score when calculating premiums; businesses with better scores often receive lower rates.

Ensure your business pays its bills on time and in full each month. Monitor your credit record regularly for any discrepancies or errors that could affect your score. Manage lines of credit responsibly by not taking out more debt than you can reasonably afford to repay in a timely manner.

 7. Minimise business risks

Minimising your risks can lower your premiums by decreasing the likelihood that the insurer will have to pay out on a claim. When insurers perceive that the risk of losses or damages is low, they will typically offer lower premiums than if higher levels of risk are involved. Additionally, taking preventive measures and implementing safety protocols to minimise risks can demonstrate an increased level of responsibility on behalf of the business owner, which could result in lower premiums.

8. Evaluate insurance rates annually to ensure the best option 

Evaluating your insurance rates annually allows you to compare prices and coverage options. This helps you find the best option for your business's current needs, budget and risk profile while ensuring that you are not overpaying for unnecessary coverage or missing out on important protections.

Get a business insurance quote from First for Women

Managing your business insurance costs is a critical part of running a successful business. Ensuring that you have the right coverage for your needs, reviewing and comparing policies regularly, and working with experienced professionals are all important strategies to help manage these costs. By taking the time to understand your insurance needs and researching options available in the market, you can ensure that you get quality coverage at an affordable rate.

First for Women offers a variety of business insurance products to help protect your business. To get a business insurance quote, simply fill out our online form or call our toll-free number, 0861 11 16 67. Our friendly and knowledgeable staff will be happy to assist you in finding the right coverage for your business.

Sources:

[1] Insuranceopedia: What does under-insurance mean? 

[2] Investopedia: What is a good credit score, and how do I get one? 

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.