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3 Ways to Reduce Your Business Insurance Premiums

By: Kelly Reed



When starting a business, most people focus too much on what should go right and forget to account for what could go wrong. While risk is a part of doing business, small businesses may not have extensive resources like large companies to deal with them.

This leaves small businesses more vulnerable despite facing similar risks to big companies. And one of the best ways to protect your business assets from unexpected losses is by purchasing insurance.

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Although purchasing business insurance is crucial to running a successful business, insurance premiums can be costly for any small business owner. This is especially true considering all the costs associated with running a business. Fortunately, there are many ways to lower the cost of insurance.

For instance, you can reduce car insurance premiums by shopping around and comparing quotes from multiple auto insurance companies. In this post, we’ll look at a few other effective ways that you can reduce insurance premiums for your small business:

1. Combine Individual Policies

Small businesses often face numerous risks affecting their operations and bottom line. You’ll likely need to purchase different types of coverage to protect the operations of your small business. Common types of coverage for small businesses include commercial auto, property, general liability, and many more. However, purchasing individual policies can increase your monthly premiums.

Combining these coverages and purchasing them as a bundle, also known as a business owners policy (BOP), can be more cost-efficient than buying individual policies. A BOP typically combines general liability and property insurance into an affordable package, making it a great way to reduce insurance costs for your small business.

2. Have a Safety Plan

Another effective way to reduce your small business insurance premiums is by reducing your risks. You can do that by creating and enforcing a safety plan in your business. You can ask your insurer to help you create a robust business safety plan. A comprehensive workplace safety plan can help reduce or prevent potential hazards that could result in injuries, accidents, and lawsuits, leading to losses. Improved workplace safety could lead to fewer losses and reduced general liability and workers’ compensation premiums.

You can also reduce the risk of workplace accidents by using safety technology, such as internet-connected sensors, wearables, and smartphone safety apps. These smart devices can reduce the risk of workplace injuries and accidents and ensure the safety and health of your employees.

3. Raise Your Deductible

Increasing your deductible is probably the fastest and most common way to reduce your business insurance premiums. A deductible is a form of self-insurance that often includes auto and property insurance. When you file for property damage or an auto accident that qualifies for coverage, you pay a deductible, the amount you’re required to pay after making a claim. Increasing your deductible means you pay more when you file a claim. This helps reduce your premiums. When increasing your deductible, ensure you set an amount your small business can afford to pay upfront when a claim is necessary.


Many factors can impact the cost of your small business insurance premiums, from the insurer you choose to the risks your business poses. Every business is different, so the coverage needs can vary from one company to another. Following the above tips can help reduce your premiums and save your small business a lot of money.

Published: September 27, 2022

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Kelly Reed

Kelly Reed

Kelly Reed began writing as a professional on her personal blog and then discovered her true calling, which is writing about technology, news, home improvement, and business. She's been a technical writer, author and blogger since 2010.

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