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How To Save Money On Small Business Insurance

Small businesses are the backbone of the American economy, but they can also be a big financial burden. One of the biggest expenses for any small business is insurance. Between property insurance, liability insurance, and employee health insurance, the costs can quickly add up. Fortunately, there are some ways to save money on the best small business insurance without skimping on coverage. Here are seven tips to help you get started.

1. Review Your Policy Regularly And Make Changes As Needed

The first step is to review your small business insurance policy on a regular basis. Make sure that you are still getting the same level of coverage and that your premiums are still in line with your needs. If not, make changes to your policy accordingly. You may be able to save money by raising your deductible or switching to a higher deductible health insurance plan.

2. Shop Around And Compare Rates

When it comes time to renew your policy, don’t just automatically go with the same company. Get quotes from several different insurers and compare rates. You may be surprised at how much you can save just by shopping around.

3. Go For A Higher Deductible

One way to lower your premiums is to opt for a higher deductible. This means that you will have to pay more out of pocket if you need to file a claim, but it can lead to significant savings on your premium costs. Just make sure that you have enough saved up in case you do need to file a claim so that you don’t end up in a financial bind.

4. Take Advantage Of Discounts

Many insurers offer discounts for things like staying claims-free for a certain period of time or installing security devices in your business premises. Ask your insurer what kinds of discounts they offer and see if you qualify for any of them. You could save 10% or more on your annual premium costs just by taking advantage of available discounts.

5. Bonus:

Ask Your Agent About Pay-As-You-Go Insurance. Some small business insurers now offer pay-as-you-go insurance plans that allow you to align your premium payments with your actual revenue instead of making one lump sum payment at the beginning of the year. This can help cash-strapped businesses keep their premiums affordable while still getting the coverage they need.

6. Consider Joining A Trade Association:

Trade associations often offer group insurance plans that can be cheaper than individual policies from an insurer. This is because insurers give companies discounted rates when they bundle multiple policies together. If your business is eligible, this could be a great way to get cheaper small business insurance.

7. Don’t Skimp On Coverage:

While it’s important to save money on small business insurance, you don’t want to sacrifice coverage in the process. Make sure that you are still getting the protection that you need. Otherwise, you could end up being underinsured and facing a financial burden if you have to file a claim.


These are seven tips to help you save money on small business insurance. By reviewing your policy regularly, shopping around for the best rates, and taking advantage of discounts, you can keep your costs down without sacrificing coverage.