24 Jan 5 Ways to Reduce Business Expenses in 2023
With the cost of everything rising, it makes sense for businesses to do what they can in order to reduce their overall expenses. While a number of things, from materials to labor, are necessary expenses, there are some that can be adjusted and potentially reduced. Your business insurance costs may be one of them.
Obviously, you need to keep your coverages in place, should something unexpected happen, but there are some ways to lower your overall insurance costs. Here are some of the most effective tips that may help you save a little money on your bottom line.
1) Bundle Your Insurance Policies
Some insurance policies, like a typical BOP, or business owner’s policy, come bundled. However, others do not. In addition, if you have multiple policies with one company, you may receive a bundle discount, so it’s worth condensing your insurance policies into one single package with one insurer. If you currently have a number of policies with multiple insurance companies, making the change to one and bundling those policies can save you money.
2) Change Your Deductibles
Your deductible is the amount that you’ll have to pay out of pocket should you need to call in a claim. Depending on the type of insurance, this is either a percentage or a flat figure, like $1,000. Raising your deductible, while keeping it within the range that you can afford, can lower your overall premiums.
3) Make Sure That You Have the Right Coverage
Your business needs change quite a bit over time. Plus, with the advent of newer options, like cyber liability insurance, you might not need some of your higher-premium policies or you might qualify for a lower amount of coverage. If you can lower your coverage while still keeping your business as protected as possible, then you might be able to cut down on your insurance expenses. Your best option is to make an appointment to meet with an insurance agent, so you can go over everything in depth.
4) Pay in Advance
Many insurance plans come with a built-in paid in advance discount. This is the insurer’s way of thanking you, since they won’t need to collect your premiums monthly, send you billing statements, make sure that you pay on time, etc. These discounts can be quite high, depending on the amounts and types of the policies, so see if you can save money by paying for six months of insurance in advance.
5) Ask About Discounts
Some insurance companies offer discounts for a myriad of reasons. For example, if you’re a member of a college alumni association, have joined a business organization, or are a military veteran, then you might qualify for a discount on your insurance, even if you only have business policies. Your insurance company might even have a loyalty discount, if you’ve been with them for a qualifying number of years. It never hurts to ask.
Contact Spivey Insurance
If you want to reduce your business expenses this year, then start with your insurance policies. A few minor changes, still leaving your business completely covered, might be the difference between meeting your budget and exceeding it. Contact one of our insurance agents today to see how we can help.