Tips for Saving on Your Business Policy

Factors influencing business insurance costs include type of business, location, physical size of building, and your credit rating. If you run a highly competitive business, insurers may offer you a better deal, if you buy your business insurance from their company.

Do your homework, and get several price quotes from different insurers before making a final decision. With just a click of the mouse, you can compare several rates at one time. In the end, any cost for business insurance, will be cheaper than being without it.

Periodic Reviews

It's important to review your business insurance policy with your agent, anytime there is a change. "Whether you're adding a new location, more staff, or even expanding product and service lines, any change has an impact on your coverage," adds Dan Collins, Business Insurance Manager with Wells Fargo Insurance Inc.

Reducing Risk

Well trained employees are more productive, have better morale, and are less likely to have accidents. Teach employees proper lifting techniques with regular reinforcement. Lift with the legs, not the back, and get help with oversized loads. Use a step stool or ladder for overhead objects.

To prevent falls, mop up spills immediately, and replace rugs with curled up edges. This is especially important when dealing with the public. Public liability insurance won't cover all damages, so taking the time to identify hazards and correcting them, may prevent a costly lawsuit that could devastate your business.

Business Owner's Policy

A business owner's policy combines traditional insurance such as property, general liability, and business auto expenses. Combining policies streamlines the insurance buying process, and saves you money. Make sure the specific policies that you need are offered in the package, such as business interruption, and extra expense coverage.

Relocation

Relocating your business can be the wisest decision you've ever made. "When you move or expand to a new location, the odds are stacked in your favor," according to relocation expert Luigi Salvaneschi, who has overseen the selection of new sites for thousands of retail establishments. "Because you have been in business for some time, he says, you are fully aware of all the problems your current location has. If you have poor traffic and know that's the problem, you look for a new location that has good traffic."

When you first started your business, a prime location may have resulted in lots of buyers. Now, through deterioration, or a high crime rate, people may be afraid to shop there. If you relocate to a better economic area with increased foot traffic, your revenues will increase, especially if you have a unique product.

Smaller communities needing more revenue may offer tax breaks for businesses to move to their local area. Before you move, meet with top community leaders, to see if what they're offering is enough to justify relocating your business.

If community leaders don't come to you, approach them with a professional, well thought out plan, detailing the economic benefits of having your business in their local area. If you provide competition to a larger chain store, a bigger tax break may be offered. These tax breaks can more than make up for the initial loss of revenue, from starting a new customer base.