Many companies look for ways to reduce their costs. It can be wise to do this. Yet, one area to be careful about is your insurance coverage. When you need to file a claim, the worst thing you can do is lack enough insurance coverage to keep your business afloat. This is very true about general liability insurance. It can prove vital if someone sues you for negligence. How can you keep costs in line, then?
Choose Coverage That Matches Your Risk
Most companies need general liability insurance. The amount you need differs from one company to the next, though. It is not beneficial to have too much coverage. That is if you have insurance to meet your needs, you do not need to have excessive amounts.
Finding the right balance here is not always easy to do. Your agent can help you to find this coverage. They can use information such as the following to help:
- What have other businesses in the area claimed in the past few years?
- What amount of claims has your business filed in the last few years?
- Is there any reason to believe claims will rise in the coming year?
- What is a typical amount of coverage within your industry?
- How large is the business? How many employees do you have?
This insight provides the insurer with the information to help you choose the right amount of general liability insurance for your business.
What about the Deductible?
You may be able to reduce your premium costs by increasing your deductible. Many businesses have high deductibles. This is likely in those instances where claims are not that common. If you file claims often, having a lower deductible limit may mean you do not have to worry as much about paying out-of-pocket for each one.
However, if your company can afford to have a larger deductible and does not file claims often, raising it will often save you money. Again, find the right balance here. Too high means it is too expensive to file a claim.
Work with your agent to find other ways to reduce costs, too. Improving safety and reducing frivolous claims can help. The right balance of coverage makes a big difference. Work with your general liability insurance agent to find that balance for your business. You can then count on saving a bit of money.
Also Read: 4 Must Have Business Insurance Policies