Purchasing a business owners policy is a great way for small businesses in Massachusetts to keep their insurance premiums low (provided a policy provides all of the coverages that a business needs). Most insurers offer steep multi-policy discounts, making getting coverage through a package policy much more affordable than purchasing each coverage separately. Getting a BOP isn’t the only thing that businesses can do to keep their premiums as low as possible, though. Here are some other steps businesses can take to save on the insurance coverages included in business owners policies.
What Can Businesses Do to Keep Their Business Owners Policy Premiums Low?
Select Higher Deductibles for Coverages
First, you can select higher deductibles when choosing a business owners policy (or increase the deductibles on your business’ current policy). By increasing a coverage’s deductible, you’re generally reducing the chances that your business will file a claim. As a result, insurers will usually lower the policy’s premiums.
This shouldn’t be done carelessly, for increasing deductibles shifts risk from the insurer to your business. Your business will have less protection for small claims, and it’ll need to pay more before the insurer will begin to cover larger claims.
The risk that your business assumes when increasing deductibles is finite and usually manageable, though. You’ll know exactly how much more your business should be prepared to spend on a potential claims. For instance, if you increase a coverage’s deductible by $1,000, your business should be ready to spend another $1,000 before the coverage pays on a claim.
Sometimes, the extra risk your business takes on is significantly outweighed be the premium decrease an insurer offers. To find out exactly how much your business might save with this strategy, ask your business’ insurance agent to request quotes for a BOP that has higher deductibles.
Inquire About Loss-Prevention Steps Your Business Can Take
Second, ask your insurer whether there are any loss-prevention steps that your business can take to qualify for a discount. Unlike raising deductibles, this won’t increase your business’ risk exposure. It will actually reduce it by making your business a safer place. As a reward, some insurers will provide a discount.
What loss-prevention steps insurers offer discounts for vary (and some insurers may not offer these discounts). Nevertheless, some examples of steps that your insurance provider might lower your business’ BOP rates for include:
- Having a monitored security system installed
- Developing and implementing business-wide safety protocols
- Electing to work with insured vendors only
Whether a Pay-in-Full Discount is Offered
Third, see whether your insurer offers any pay-in-full discounts. Some Massachusetts insurers will grant slightly lower rates to businesses that pay their BOP premiums up front.
If you have a fledgling startup or your business runs on a tight cash flow, it might not be able to take advantage of such a discount. If your business has the financial resources to pay its premiums in full, though, even a small discount could save your business some money.
Look for a Business Owners Policy with an Independent Massachusetts Agent
To make sure you’re getting the best BOP insurance coverages at the lowest available rates, ask an independent insurance agent in Massachusetts to help you look for a business owners policy. An independent agent is free to request quotes for policies from multiple insurers in the state, and they can show you the top available option no matter what insurance company is offering it. With an agent’s help, you’ll be able to compare several quotes so you can feel confident that your business is getting the best deal on insurance that works for your business.