If there’s one thing most small business owners can agree on, it’s that every penny counts—especially when you’re trying to get your business off the ground. Prioritizing spending is a priority in itself for entrepreneurs, but one thing that should remain high on the list is insurance protection. Without the proper insurance coverage, you leave your business vulnerable to a number of risks and potential losses. Among the list of assets that need protection is your property. Whether you operate out of your home or a commercial space, it’s important to get the right property insurance so you’re protected in the face of a loss. And while insurance may seem like an added expense, there are some things you can do as a small business owner that may help lower your property insurance premiums.
Tips to help lower your property insurance premium
Raise your deductible
If you have a higher deductible, you’ll likely have a lower premium. Deductibles are the amount of money policy holders are required to pay towards a loss before an insurance company pays out a claim. For example, if your property falls victim to a fire and it results in $3,000 worth of damages, you’re required to pay out your deductible before your insurance company covers any expenses. If your deductible is $500, that’s how much you will be required to pay. Before raising your deductible, it’s important to be sure that you can afford to pay the agreed upon amount if you suffer a loss.
There are a lot of options for property insurance out there, so don’t immediately settle on the first quote you receive. Shop around and get an idea of what a few different companies are offering so you can better understand the average and what is considered high or low. Here are few ways to explore your options:
- Ask your friends and family about positive experiences they’ve had with insurance companies.
- If you work with a broker, ask him or her to provide a few options from a few different companies.
- Ask the insurance companies directly if there are ways you can bring down your premium.
- Read online reviews and testimonials to gain insight on customer experiences with various insurers.
- Some companies will allow you to get a quote online, making it easy for you to get different pricing options.
Bundle your insurance needs
Sometimes if you choose to insure all of your assets with one company, they can offer you a lower premium. For example, if your business uses a commercial vehicle, you’ll also require commercial auto insurance. If you purchase both your auto and property insurance from the same insurer, you may be able to get a discount. Before deciding on a provider, ask if this is an option with the policies they offer. If your property is already insured, speak with your broker, agent or customer service representative to get more information about bundling packages.
Pay your premium annually
A lot of insurance companies offer different payment options. Usually you’ll have the option to pay monthly, quarterly or annually. If you pay your insurance in a lump sum at the start of your contracted term as opposed to installments, sometimes the insurance company will offer you some sort of discount off the total amount or it will help you avoid financing fees.
Improve your property security
There are a few security measures small business owners can implement within their properties that may help lower their insurance premiums. For example, some insurance companies will offer a discount if you install a sophisticated sprinkler system in case of a fire. Other items to consider include:
- Security alarms
- Security cameras
- Fire extinguishers
- Smoke alarms
If you’re a TruShield customer and would like some more information on how to proactively combat risks within your business’ property, use our Risk Management Assist service*.
Review your policy throughout the year
There are a number of scenarios that could affect your property insurance coverage. If you make any major changes or additions to your property during your contracted term, this could cause an increase or a decrease in your premium amount. One of the factors that goes into determining property insurance premiums is the value of your building. If you do work that increases that value, your premium could also increase; however, if you do work to your property that lessens the likelihood of a claim, this could lower your premium. For example, if you replace the roof on your business property, this could help bring down your costs. Most insurance companies favour properties with roofs no older than 20 years. No matter what changes you make to your property, it’s very important that you let your insurance provider know so they can adjust your policy accordingly. Not doing so may leave you vulnerable to risk and financial loss.
Stay with the same company long-term
If you’ve had a good experience with your insurance provider, stay with them long term. Developing a good reputation and a strong relationship with one insurance provider can often lead to lower premiums. If you have a strong history of paying your premiums on time and little to no claims, you’re likely to see your rates decrease over time.
If you’re in the process of purchasing coverage for your small business, try the TruShield Coverage Coach. Answer a few online questions, and receive your free, no-obligation quote.
* Service is not an insurance policy. Not all policies are eligible, contact us for details.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply, see policy for details.