9 Tips to Reducing Your Commercial Insurance Costs

Are you looking for tips on how to decrease your commercial insurance costs? Of course you are! We all are. Here are nine tips to help you protect your business, save money and ultimately reduce your commercial insurance costs.

Step 1: Assess Your Current Coverage

Review your existing property insurance policy to understand the coverage levels, exclusions, and any additional endorsements. This will help you identify areas where you are over-insured, under-insured, or have potential savings.

Step 2: Inventory Your Assets

Create a detailed inventory of all your business assets, including buildings, equipment, furniture, and inventory. This will help you accurately assess the value of your property and ensure you have the appropriate coverage.

Step 3 : Work with a single, trusted agent to find the right carrier

While it might initially seem appealing to seek multiple agents for shopping your commercial property insurance, this approach can create more problems than it solves. A carrier will only work with the first agent who submitted an application. This process of "blocking" the market prevents other agents from obtaining quotes from the same carrier. Attempting multiple agents will limit your access to the full range of potential policy options and prevent you from getting a comprehensive view of the options available to you. You may find yourself with fewer choices and less negotiating power.

Step 4: Bundle your policies

Some insurers offer discounts for multiple policy purchases. When possible, ask your carrier about bundling your property insurance with other policies your business requires, such as general liability and/or commercial auto insurance.

Step 5: Increase your deductible

Raising your deductible can lead to lower premiums. A higher deductible means you'll pay more out-of-pocket in the event of a claim, but it can result in some savings on your property insurance rates. Be sure to choose a deductible you can comfortably afford should a claim arise.

Step 6: Implement risk mitigation measures

Invest in measures to reduce the risk of damage to your property. This might include installing security systems, fire alarms, sprinkler systems, or upgrading building materials to more durable and fire-resistant options. Insurers often offer discounts for businesses that take proactive steps to minimize risk.

Step 7: Regular Maintenance

Performing regular maintenance on your property to prevent damage from wear and tear or potential hazards can help avoid costly claims and keep property insurance rates lower. This includes checking for leaks, maintaining HVAC systems, and inspecting electrical systems. Replacing roofs, windows and doors every 15 years can also help keep rates lower, or even help find coverage in this tight property market.

Step 8: Review your policy annually

Annual reevaluation will help ensure appropriate coverage to your property. Due to dramatic increases in property values and construction costs, it may even be worth the time and effort to discuss current replacement costs with a local contractor or obtain a formal Property Cost Appraisal so you can review your limits and have accurate values.

Step 9: Inquire about discounts and credits

Ask your insurance provider about any available discounts or credits. Unless you're part of an Association, you may qualify for discounts for being claim-free, using specific building materials, or implementing safety and security measures. Discounts may be more frequently attained in Liability and Workers Comp packages.

By following these steps, businesses can work towards lowering their property insurance rates while maintaining adequate coverage to protect their valuable assets. Follow us to stay up to date on current trends and for more helpful advice on protecting your business and saving money. 

Please contact us if you have questions! 
910.762.8551
insurance@wellsins.com

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