Cheap business insurance: Affordable options for small businesses

Small business owners want to get the best business insurance coverage possible, but 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?

Cheap business insurance may be alluring, but It’s important to balance liability insurance costs, coverage and ease of use as well.

Jump ahead to learn:

• How much does cheap business insurance cost?
• How to buy cheap business insurance
• What to look for in a small business insurance provider
• How NEXT helps small business owners get the right insurance

How much does cheap business insurance cost?

Every business has risks that can usually be protected by different types of insurance — such as general liability insurance or commercial property insurance.

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.

Estimating your insurance costs

If you’re looking for cheap business insurance, there are a few things to consider with your small business insurance costs:

• Your business risks. Some professions are riskier than others. If you have higher risks for bodily injury or property damage, you might have to pay more for insurance.
• Payroll and number of employees. The amount of payroll and the number of employees at your business will usually impact your insurance costs.
• Services you provide. Depending on the services you provide, you might need more types of insurance. Some businesses have several types of liability coverage, including professional liability insurance for professional services and commercial auto insurance if employees drive for work.
• Business property. You might need to pay more for insurance to protect expensive business property, equipment and inventory.
• Location. You could pay more for property insurance if you’re working in an area that historically has more weather-related damage or property crime.
• Claims history. If you have a history of liability claims, for example, that could be factored into the pricing for a new general liability policy.
• Coverage limits. You will have the option to select your policy limits and deductibles with some types of business insurance. If you choose lower limits, your insurance costs might be lower.

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:

• General liability policy costs
• Professional liability costs
• Commercial property insurance costs
• Workers compensation insurance costs

How to buy cheap business insurance

Generally speaking, you could end up overpaying for business insurance costs when you:

• Overinsure. Are you paying for insurance coverage that you don’t need? Make sure you get coverage that is tailored to your business needs, not a one-size-fits-all option that some insurance companies offer.
• Don’t read the fine print. Business insurance policies may include policy limits, cancellation penalties or hidden fees. Review your insurance documents closely.

Now that you know some common ways of overpaying, let’s look for ways to save.

1. Shop around

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.

2. Look for bundles and packaging options

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.

3. Buy insurance online

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.

4. Reduce your risks

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.

What to look for in a small business insurance provider

While you want affordable small business insurance, you also need reliable coverage. That means your insurance provider should be:

• Available: They should work hours that are convenient for you
• Accessible: Easily reached when you need more information or help
• Responsive: Listens to your needs, with live support where needed
• Accommodating: Makes an effort to accommodate your requests
• Reliable: Pays claims quickly and according to what you’ve agreed

Look for some of the following qualities in your provider:

1. Cost-effective services

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.

2. Simplicity

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.

3. Customized insurance for your business

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.

How NEXT helps small business owners get the right insurance

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.

Get a free instant quote today.