General liability insurance is crucial for businesses across industries, but everything with a business is push and pull. It is important to consider the cost of your business’ insurance and understand ways you can save on coverage.
Whatever you're spending on general liability insurance right now could save you millions in the long run. But bringing your rates down will save you money now and later.
Here are some ways you can save money on general liability insurance:
Invest in Security
If you have the budget for it and you run a large facility — such as a shopping mall or factory — a full-time security staff can bring your general liability rates down quite a bit. Most of us aren't quite on that level, though. So simple burglar alarms and surveillance cameras can do the trick.
Train your staff, retrain your staff, and keep your shop clean. Provide your insurer with all the pertinent information on how you run your business and copies of your training manuals. Also let them know that you're putting safety first.
Avoid Filing a Claim When Possible
Any time you're thinking of filing a claim, consider whether it would be smarter to cover the damages from company funds instead. In some cases, it may cost more to reach your deductible than to pay for the damages out of pocket. Keep in mind that your rates will likely go up after a claim.
Consider Participating in State Safety Programs
Look into business safety programs run by your state government. This can help with lowering your rates across the board — especially for general liability and workers compensation coverage.
Hire a Contract Lawyer
With solid contracts, you can greatly reduce your risk of being caught up in a liability case owing to your dealings with contractors, suppliers and clients. Paying a contract lawyer to help you draft up the documents is an added expense. But it may save you quite a bit on your general liability insurance premiums.
Bundle Your Business Insurance
General liability insurance can often be bundled with other insurance policies for you to save money. For example, you can combine general liability insurance and commercial property insurance into a business owners policy which packages insurance for small businesses in low risk industries.
Shop around and compare quotes to find the best general liability insurance policy for your business and your budget. Speak with an insurance agent if you have any questions about your coverage or rates.