Starting a business in Stratford is truly an exciting time. You’re finally your own boss and have financial flexibility. That said, it’s not the easiest road to take.
As a new business owner, you might be too focused on establishing and growing your business. However, you must also think about securing your business and the best way to do that is to get comprehensive business insurance in Stratford.
Business insurance helps protect your assets and resources from unexpected losses. However, it comes with a huge cost. For instance, a small business can spend up to CAD$500 to CAD$5,000 for insurance per year.
Fortunately, there are numerous ways to reduce the costs of your business insurance in Stratford. They are as follows:
- Shop Around
Comparing providers and insurance products are essential since no two insurers are the same. They can charge widely different rates for the same business coverage. So, as much as possible, take your time and try to compare which insurance provider can give you the most comprehensive plan at reasonable rates.
You can try surfing the web and comparing providers in Stratford. Also, there are several comparison websites you can use to easily compare products from different providers. If you don’t have the time or enough information on what to look for, you can ask an independent agent to collect quotations on your behalf.
When comparing quotes from different insurance providers, make sure to consider the limits and coverages in each policy. Also, check the associated costs and beware of hidden fees.
- Categorize Your Employees
One of the most essential types of business insurance is workers’ compensation coverage. The classification of your employees can have a huge impact on your premiums. The rating reflects the riskiness of the operation and the likelihood of employees being injured. So, the riskier the operations, the higher the rates will be. For instance, construction workers have a high risk of sustaining injuries in the workplace, thus insurers tend to charge higher premiums.
Make sure that your employees are properly categorized to avoid high premiums. However, you should also resist the temptation of downplaying possible dangers in your business operations. As a result, you may find yourself without coverage when you need it.
In addition, when an employee leaves or enters your business, you need to let your insurance provider know since this can also affect premium costs.
- Minimize Business Risks
The higher your business risk is, the more expensive your premiums will be. So, if you want to cut down on insurance costs, you need to minimize potential risks within your business.
Fire sprinkler systems, security systems, worker safety programs, and other security measures can help reduce business risks. In addition, you also need to maintain robust security protocols that reduce cybersecurity risks. With solid safety measures in place, insurance providers may reduce your premiums.
- Increase Your Deductible
The deductible is the amount you pay when you file a claim for an incident that qualifies for coverage. By increasing your deductible, you can lower your premium–it’s simple math. That said, you have to make sure that your business can afford to pay the necessary deductible amount up front in case a claim arises.
- Opt For Package Policies
Another way to cut down the cost of your business insurance is to choose a package policy instead of buying several individual policies. For instance, a business owner’s policy may include both commercial property and general liability insurance.
- Remove Overlapping And Unnecessary Coverages
Some types of business insurance may have overlapping coverage. You can lower your insurance premium by checking for duplicate and unnecessary coverages and eliminating them accordingly. For instance, your company vehicles may be insured under both commercial auto and general liability policies. When this happens, it’s best to retain just one policy.
In addition to overlapping coverages, you may also need to check for outdated and unnecessary coverages. As your business’s needs and circumstances change over time, your policy may still cover risks that your business no longer has. A good example of this is business interruption insurance that specifically covers Coronavirus-related losses. If you live in an area where the risks of COVID-19 have been significantly minimized, then you might not need such coverage anymore.
Takeaway
The right business insurance helps mitigate risks and protect the business you’ve worked so hard to establish and build. That said, your commercial insurance shouldn’t be the cause of your business’s financial instability. Keep your Stratford business insurance cost manageable by following the above-mentioned tips and using the extra savings for growth strategies.