By Thomas Mallon of Thomas Mallon: Allstate Insurance
Managing business insurance costs is one of the many responsibilities you are likely juggling if you own a small business. Periodically reviewing your business insurance policy helps ensure you have the right amount of protection for your company and get the most for your money.
Keeping your bank account in mind, here are some factors to consider as you make decisions about your business insurance policy:
1. Reduce Costs by Bundling Insurance Coverages
A business may have multiple policies with different insurance companies. For example, a business might purchase general liability coverage from one insurer and data compromise coverage from another. By bundling your business coverages into one policy, you may be able to reduce your total premium costs (the amount you pay an insurer to keep the policy in force).
2. Re-evaluate Your Deductibles
A deductible is the amount of money you pay out of pocket toward a covered claim. Increasing the deductible on your business insurance policy may reduce the cost of your premium. You could then consider putting saved money back into your business each month. However, before choosing a higher deductible, consider how much money you’d have available to pay out of pocket to repair your business or replace its contents after a covered claim, like theft or fire.
3. Meet With Your Insurance Agent Annually To Review Coverages
Business needs can change rapidly. It’s a good idea to review your policy with your insurance agent regularly. To avoid potential fines, you should let your insurance agent know when you make significant changes to your business, such as:
- Reducing or increasing your number of employees.
- Relocating your business.
- Introducing operational changes (such as purchasing new equipment or expanding product offerings).
When reviewing your business’s insurance policy, different coverages may be available. Contact your insurance agent to help you understand what each type of insurance means, as well as to help review your current coverages and make adjustments based on your company’s changing needs.
Types of insurance policies include:
- General liability insurance
- Business property coverage
- Business interruption insurance
- Business auto insurance
- Equipment breakdown coverage
- Employment practices liability insurance
- Errors and omissions insurance
- Data compromise coverage
4. Consider Stronger Risk Management In Your Daily Operations
Identifying potential business risks and having the right insurance coverage in place can be financially significant if the unexpected happens. Additional measures to reduce business risks include:
Planning for a disaster at your business: It is a good idea to think ahead and have a plan in place to help your business recover after a disaster, such as a destructive storm.
Business succession planning: As a business owner, you will likely want to leave your company in good hands when you decide to retire.
Reviewing and understanding your small business insurance policy is an important component of owning a business. If you have questions about your business insurance policy or would like to review your coverages, please feel free to reach out to us at Allstate – The Mallon Insurance Agency, at 610-660-6300. We can help you ensure you’re spending money on coverages that are appropriate for your business needs.
For mor info contact Thomas Mallon, Agency Owner of Thomas Mallon Allstate Agency located at 829 W Sproul Rd in Springfield, Delco, PA – Phone: 610-660-6300, Email: [email protected]