Where can I buy cheap small business insurance? Small business owners will find that there is no insurance company that is selling cheap small business insurance. If that were the case, it would be the only insurance company in business. Small business owners create cheap small business insurance for themselves by lessening their risks and transferring them to a third party.
To compare rates and find the best options available, simply enter your zip code above to begin comparing business insurance quotes from all the major insurance companies.
Lessen Business Risks
If small business owners can lessen their business risks, they will give an insurance company a reason to lower their premiums. Small businesses can be susceptible to very large risks resulting from human error to natural disasters, and it can have devastating effects on a business. It can even cause a small business to have to cease its operations.
By lessening a small business’s risks, small business owners can prevent the need to file a claim for their small business insurance. This has two effects:
1. Their small business insurance is less costly.
2. Small business owners have less of a chance of losing their businesses and, therefore, their livelihoods.
The Most Likely Risks
First, determine which risks are the small business’s most likely risks. For some companies, it may be that there is a high likelihood of employee injury. By implementing occasional safety courses, the small business owners are showing the employees as well as the insurance company that they are concerned for employee welfare and maintaining a safe environment.
One example is for commercial car insurance. A small business that uses vehicles to make deliveries, for example, that requires its employee drivers to attend driver safety courses qualifies for a discount on their commercial car insurance.
Transfer the Risks to another Party
A small business can transfer its risks to third parties in several ways. One is by not owning the equipment that they use to run their businesses. By leasing the equipment, the liability remains with the owner if the small business owner can have this written into the leasing contract.
By not maintaining a warehouse full of merchandise, small businesses lower several risks concerning the condition of the product. If they can keep from receiving the products at all and have the third party deliver them, they decrease their risks to the lowest level.
A small business owner can even transfer the risks to the customer who has purchased products at their stores. If it’s possible to do this, it would lower their risks when a customer is present in the store. Small business owners may also have the opportunity to draw a contract entitled the “hold harmless agreement.” If they can do this, the third party is agreeing to assume the risks associated with legal liability.
Protect the Building from Damage
Protect the business against the damage it may sustain during a fire. Small business owners can do this by installing sprinklers and fire alarms. They can protect their buildings against the possibility of theft with burglar alarms and dead bolt locks on the doors.
Safeguard Small Business Technology
A business that uses extensive technology has different considerations because if the technology were to fail, the small business would not be able to operate. Having a plan in place that gives the small business an alternative way of doing business while problems are being fixed keeps the small business from suffering great losses at these times.
Guard against Lawsuits
Lawsuits are costly operations that a small business has an incentive to prevent even though they have an insurance company that will pay for the legal defense and the settlement or jury award. A small business can reduce the likelihood of a lawsuit by regularly insuring that the employees are following all safety procedures and performing their duties in a way that the small business has authorized.
Reducing the Possibility of Product Liability Claims
Creating a product means that there may be several times that consumers of the product may believe they have been harmed in some way by it. Small business owners need to understand that they can be open to lawsuits based on their advertising, their products’ design, the instructions that explain how to use the product properly and their warning labels.
Reducing liability for faulty products means that small business owner consult with their lawyers every step of the way. They obtain legal advice on protecting themselves from product liability in their advertising, in their products’ design and their marketing efforts.
Purchase Insurance against the Risks
After the most likely risks have been illuminated, small business owners can find the right insurance policy to cover those risks. Because they can’t protect against or transfer all risks, they will need to purchase insurance policies that will transfer the risks to the insurance company.
Comparison Shop for Cheap Small Business Insurance
In order for an insurance company to accept those risks for the lowest price, small business owners find their most likely risks, protect against them as best they can and transfer the risks to third parties when possible. After they have done all of these things, they will then be able to seek a quote from several insurance companies.
As each small business seeks insurance from several insurance companies, they will receive quotes from more than one company. The companies that look favorably on a small business’s circumstances will offer a low quote. These are the companies that the small business will want to pursue further.
When the small business owners receive a call from the insurance companies’ representatives, they can inform the company of all the things they have done to lower their business’s risks. They receive discounts for their efforts and they will then be able to purchase cheap small business insurance.
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