As a contracting business owner, you’ll need to carry insurance. And like other expenses you have for your business, you’ll want to get the best deal without compromising on that necessary protection. There are a lot of ways to save money on insurance that allow you to choose the best coverage. Here are a few tips to keep in mind.
Shop Around for Coverage
When you shop for any big purchase, you’ll probably go to a few different places to see which one offers the best product or service at the best price. You should be doing this for a variety of services you keep for your business, especially insurance. Insurance companies often have significantly different rates and package options, and you should check out at least a few of them before you make a choice. In fact, you might even notice different prices between agents of the same company. If price is a big factor for you, be prepared to invest several hours into considering your options.
Find Out How Much You Really Need
As you’re browsing types of insurance for your business, get input from your insurance agent about the amount of coverage you’re likely to need. You definitely don’t want to undercut yourself and end up in a situation where you don’t have enough coverage in the event of an accident or other kind of liability. But you can certainly ask about deductibles and other ways that you can lower the cost for the same level of coverage. It’s worth doing independent research or asking a mentor for information about coverage recommendations, so that you’re not just having to take your agent’s word for it.
Ask About Discounts
Insurance is a highly subjective service. The cost you pay depends on a variety of factors, including:
- Area of specialty
- Size of the business
- Claims history
Insurance agents may have some flexibility in determining the prices that they offer you for insurance. It’s a good idea to ask about discounts that you might qualify for. When you’re just starting your business, you might not be able to access discounts that require you to prove certain aspects about your business, like safety. But if you sign up for a package deal, including liability insurance and insurance for something else like a company vehicle, you may be able to lower your costs that way.
Update Your Policy
When people start a business and get the insurance they’re required to have, they often assume that their role in the process is done. But if you want to ensure that you continue to get the best price, you’ll need to periodically evaluate your policy. If the nature of your business changes, it’s important to notify your agent and get recommendations about changing your coverage if necessary. Updates may open up new discounts that you didn’t qualify for earlier, and they also ensure that you always have the right amount of coverage when you need it.
Make Safety a Priority
In an industry like construction, the safety of your business and your employees is a significant factor in your insurance costs. Insurance companies prefer to work with contracting businesses that have a strong commitment to safety. That means that you may be able to save a significant amount on your insurance premiums by implementing a safety program and maintaining it on a regular basis. It’s a smart practice to ensure that everyone you work with knows how to do the job safely and protect others. But from an insurance standpoint, safety also saves money on claims. It makes sense that companies that work to minimize injuries and damage will pay less for insurance.
Finding the right insurance coverage at a good price is another part of running a contracting business. For more information about what you’ll need to start your own, contact CSLS today!