Saving Money on Insurance

Insurance premiums don't have to take a mighty bite from your budget

By Laura Sullivan, Freelance Writer and Editor

Insurance costs are no small financial plunge, but there are ways to cut the expense without curbing coverage. A multi-pronged attack is the best way to save money.

Reduce your risk. Not surprisingly, insurance companies show their favoritism for "safe" companies by offering lower premiums.
Invite competition. Online quote requests return multiple options to compare almost instantaneously. Or shop around for a broker or agent. In the end, however, go with just one with the best package — service plus policy — for the best price.
Evaluate unnecessary coverage. Apart from the basic business owners policy (BOP) not all companies need specialty protection. Calculate what losses your company can sustain outside of these categories and consider dropping coverage specific to those risks, if possible.
Increase your deductible. Your bottom line could sustain more than the standard, which lowers premiums.
Share your risks in an insurance pool. Check if associations offer insurance for members like you.

Lower your risk

Make yourself an attractive customer for an insurance company.
Try: The Hartford, through the U.S. Small Business Administration (SBA), created a downloadable guide, The Smart Approach to Protecting Your Business. State Farm has an online guide to loss control. American Express offers advice on controlling health insurance costs.

Find the best deal with an agent/broker

Agents and brokers know the options better than anyone and can help you make sense of the various policies as well as find the most competitive price. Some may also have risk mitigation and loss prevention techniques to offer — ask about it.
Try: The Independent Insurance Agents and Brokers Association (IIABA) has an online agent/broker finder for your location.

Get multiple quotes online

You fill out a questionnaire, insurers bid for your business on the Web.
Try: Start with InsuranceNoodle.com, a specialist in small-business policies. Also try NetQuote.com, LowQuotes.com, USInsuranceOnline.com or AllQuotesInsurance.com.

Use Your Insurer's or Agent/Broker's Services

Once you are a customer there are all sorts of risk management tools and advice that you can mine to keep your risks, premiums and losses low.
Try: Zurich (an insurer) demos its suite of online service options.

State insurance pools are different from other insurance pools. They offer no deals for high-risk companies. Keep a clean track record and reduce your risk to stay clear of this coverage, which is provided for organizations that no insurer will take on.
Whether online or in person, get at least three insurance quotes.
Review your policy yearly to make sure it still reflects the protection your business needs.