5 No-Brainer Ways To Save On Your Business Insurance
Dan Levenson September 03, 2015
Small businesses succeed or fail based on the little things. Whether it’s setting your prices 50 cents too low or too high, not paying a dollar an hour extra for a more skilled worker, or paying too much for insurance, those little things can spell doom in unexpected ways.
The savviest small business owners are constantly making minute adjustments to the way they run things, and they are always on the lookout for ways to get just a little more value by expanding their market share slightly, raising prices a few cents, or cutting costs in some way.
Being a small business owner means being open to any way to improve the performance of your business.
One of the best and often overlooked ways to cut costs is taking a second (or third, or fourth) look at your business insurance policy. There are a number of ways that small businesses can save on insurance, and as mentioned above, those savings can make the difference between a struggling business and a successful one.
1. High deductible health plans with health savings accounts.
Health insurance is expensive, and if you opt for a plan without a deductible, you could end up paying way more than you need to year over year.
The better option is to provide your employees with a less expensive healthcare plan with a higher deductible and a health savings account. The health savings account compensates for the high deductible by letting employees pay into the account pre-tax. Employees then use that money to pay for the deductible when they need to. High deductible plans make it the employee’s responsibility to think about the cost of medical services.
2. Offer wellness programs to your employees.
You won’t have to deal with insurance claims if your employees never have to use their health insurance. Keep them healthy by stocking your break room with low-calorie options instead of junk food. You can also provide discounted or free memberships to a local gym. It may cost a bit of money up front, but has the potential to save even more in the long run by preventing your employees from needing to make a claim and even reducing the number of sick days they take.
3. General workplace maintenance.
Speaking of prevention on a larger level, making sure you keep up with routine maintenance will be very beneficial. Take steps to keep the workplace clean and fix anything that breaks as soon as possible. The safer and cleaner your place of work is, the lower the chance that your employees or customers will have an accident and make a claim.
4. Bundle your insurance policies.
Your business needs a wide variety of insurances, from accident to health to general liability. In some cases, you’ll find the best deal from separate providers, but the majority of the time, bundling your plans with just one provider will save you a fair bit of money. Larger providers will often offer most or all of the types of insurance you need.
5. Re-evaluate your policies each year.
As your small business grows and changes, your insurance needs change as well. Sit down with your insurance agent each year and go over your existing policies and needs to make sure your coverage configuration is optimal. Adding and removing policies as needed will keep your coverage tight but not excessive.
Every day, we help small businesses navigate the often murky waters of securing the right business insurance. As a small business owner, you may find that insurance is one of your largest expenses, but it doesn’t have to be a money pit. Managing it properly by finding ways to cut costs and making prevention a priority is crucial to ensuring the success of your business.