When you’re a small business owner, you want to get the best business insurance coverage possible while keeping costs down.
But affordable coverage is only one part of the equation. Cheap business insurance also needs to be reliable.
If you’re paying a low premium but not getting the protection you need — what’s the point?
While cheap commercial insurance is appealing, there are other factors to consider. It’s important to balance liability insurance costs, coverage and ease of use.
Continue reading to learn more about:
Insurance rates and the different types of coverage required for your business can seem a bit confusing. But you don’t need to be an expert to understand the basics.
It’s not as complicated as you might think.
When you get a business insurance quote, you’ll be asked questions about your operations to determine your risk profile. After you submit your information, you’ll be provided with coverage recommendations and insurance cost details.
Historically, an insurance agent handled this process in person, typically at their office.
With recent technology and underwriting improvements at companies like NEXT, you can now do this online within minutes from your phone or computer.
If you’re looking for cheap business insurance, there are a few things to consider with your small business insurance costs:
This could be the cheap business insurance you’re looking for. However, if you have a claim and your limits are too low, you could pay more out of pocket to cover financial losses.
More resources for business insurance costs:
Generally speaking, you could end up overpaying for business insurance costs when you:
Now that you know some common ways of overpaying, let’s look for ways to save.
Insurance options and prices vary across providers. Compare prices, and see what kind of insurance products they offer and whom they cover.
You’ll also want to consider a few other factors outside of prices.
Check if the business insurance company has a good record for customer service, paying claims quickly and if they’re financially stable.
Just like travel packages or the cable and wifi bundles you see advertised, it’s sometimes cheaper to buy package coverage with different types of business insurance. (And more convenient too.)
For example, a business owner’s policy (BOP) includes two types of coverage — general liability and commercial property. You can save up to 10% with NEXT when you purchase this coverage.
Remember, make sure the package only includes the coverage you need.
Don’t be tempted to pay for a bundle that seems cheap but includes coverage options you don’t need.
Today, it’s easy to get online quotes or file a claim yourself. That can save you time and money by eliminating brokerage fees and other hidden costs.
Taking steps to reduce workplace risks is beneficial for a few reasons.
Less risk reduces the chances of needing to file a claim. You also might be able to reduce your premium for some coverage by following your insurer’s recommendations.
For example, some business insurance companies offer a discount if you create a workplace safety plan to reduce medical payments and workers’ compensation insurance claims.
While you want affordable small business insurance, you also need reliable coverage. That means your insurance provider should be:
Look for some of the following qualities in your provider:
Look for the services a provider offers that are free or low-cost. For example, do they give you free and easy access to your certificate of Insurance and the ability to add as many additional Insureds as you want?
This may sound minor. But if you’re working lots of jobs, these payments and time can add up.
The insurance company you work with should value simplicity. All policies should be easily accessible and easy to understand. If you need help, customer support should be provided quickly and clearly.
Each business is unique. Your business insurance should be tailored to your specific needs.
A handyman, a house cleaner and a yoga instructor all have different insurance requirements. Only pay for the coverage that’s relevant to you. Look for a provider that offers policies specific to the type of business you’re in.
NEXT is a one-stop shop for small business insurance.
We offer a streamlined and simple way to find the business insurance you need online. It usually takes less than 10 minutes to get covered.
Our DIY system makes it easy for you to review your coverage, make changes to your existing policies and access your certificate of insurance with our mobile app or website.
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your small business.