Every business needs insurance – but that doesn’t mean you need to pay over the odds to get protected. There are plenty of ways you can save money on your insurance – see if our tips can help get you cheaper cover.
Secure your premises
A big element in any good business insurance policy is buildings insurance – whether it’s a shopfront, an office, or a showroom, you’ll want to make sure your property is covered against damage from risks including fire, theft, and vandalism. But especially if you have more than one location, costs can quickly mount up.
You might be able to get cheaper coverage if you can show your insurer that you’ve taken steps to improve the security of your business premises. This could be as simple as fitting an extra lock or a shutter – or you could install an alarm, a CCTV system, or even hire 24-hour security if you’re in a particularly high-risk sector. Securing your premises means it’s less likely you’ll make a claim – and insurers will usually respond to the lower risk with cheaper premiums.
Reduce your coverage
You should always make sure your coverage is tailored to your needs – there’s no point buying £10 million of protection if you only need £5 million. It’s important that you’re adequately covered, but looking at the level of insurance other firms in your industry have taken out could let you know if you’re paying too much for insurance you don’t need.
Raise your excess
An excess is the amount that you pay towards the cost of any claim. If you’re willing to take on a higher excess, you can often find cheaper deals on business insurance – just make sure your business will be able to spare the cost if you need to make a claim on your policy.
Improve your safety record
If you’ve taken out public liability insurance, you could be protected against up to £10 million in claims if a member of the public suffers an accident or injury, or if you cause damage to someone else’s property. But this level of protection comes with a price tag, especially if you’re in a high-risk industry like building or plumbing. You can get cover for cheaper if you show insurers you’re serious about safety – make sure your business follows all the best-practice guidelines for your industry, and think about what else you could do to minimise the risk of an accident.
Many insurers will give you significant discounts if you go 5 years without someone making a claim against you, so improved safety isn’t just better for your business – it’s better for your wallet too.
Avoid high-risk tasks
Some aspects of doing business are riskier than others, so if your insurance is a serious expense, you could refocus your business activities away from these areas. For instance, part of your business might involve disposing of hazardous waste – if you can, you could save money by cutting these elements out. If they’re unavoidable, you could always consider passing some of this work on to a subcontractor – there’ll be a fee, but depending on your premiums this could still save you money in the long run.
Insurers often charge higher premiums to new businesses and start-ups. This can seem unfair if you’re just getting on your feet as a business owner, but they’ve calculated that long-established businesses are likely to pose less of a risk than firms that are just starting up. If you can prove that you know how to run a successful business, your premiums should fall – so while insurance might be expensive for your first year, the cost should drop every year you keep your business going.
The best way to save money on business insurance is to use a price comparison site like MoneySuperMarket. We’ve teamed up with Simply Business to bring you quotes from over a dozen of the UK’s leading insurers, all available at the click of a mouse. Simply tell us a little about your business, and you could find a new quote within minutes. By comparing quotes, you’ll never miss out on a great deal – if you think your business insurance is too expensive, it’s likely there’s a better option out there.
Just remember that cheaper isn’t always better. It might be tempting to go for the cheapest deal possible – but you could end up paying far more if you’re under-insured. Always make sure you’re getting the right level of coverage for your business, and then see where you can save.