Lowering your business insurance rates

Successfully running a business means always keeping a keen eye on the bottom line. When it comes to cost savings, every little bit counts.

When reassessing your insurance needs and premiums, consider these methods for lowering rates when your policies come due.

Shop around

Periodically comparing your current insurance provider’s rates to their competitors’ is smart business–but read between the lines before jumping ship.

Don’t purchase business insurance based on price alone. Always compare apples to apples in terms of coverage and only buy from a reputable company.

Jettison unnecessary coverage

Over time your business’ insurance needs will change. Review your current policy to ensure you aren’t paying for coverage that is no longer relevant to your operation.

  • Revise auto & equipment schedules to make sure your business still owns all the vehicles & machinery you are paying to insure.
  • Check to make sure you aren’t paying increased rates for an employee who is no longer with you.
  • Compare all your business’ policies to make sure there is no coverage overlap.

Consider increasing your deductible

Virtually any type of insurance premium can be lowered by increasing the deductible.

Perhaps your cash flow is stronger today than when you purchased the original policy. Or maybe you’ve implemented changes in your organization that substantially lower your risk.

There are many scenarios where increasing your deductible makes smart business sense. Just be careful not to raise your deductibles to a level higher than your business can cover in the event of a loss.

Bundle policies

Providers offer discounts when purchasing multiple insurance types under a single policy. If you’re currently contracting separate policies from different companies, it’s worth your while to look into how much money you might save by consolidating.

Reduce Your Risk

Insurance companies reward businesses that implement measures to improve safety and lower risk. Ask your agent which risk management strategies qualify for discounts.


  • Install safety equipment such as non-slip flooring, handrails or upgraded machinery
  • Safety training programs
  • Sprinkler system
  • Security system
  • Adopt & maintain a safety plan
  • Defensive driver courses
  • Firewalls & other reductions in cybercrime exposure

Check that all employees are categorized correctly

Workers compensation premiums can vary widely depending on the job classification of the employees you are covering. You could be paying high-risk rates for office workers simply because of the industry you operate in.

Correct employees’ categorization when it is legitimately wrong but be careful. Don’t downplay the risk a certain employee faces on the job or you could void coverage.

Look for group rates

If your business is active in a professional organization, you may be eligible for discounted insurance rates through an affiliate program.

Pay Up Front

If you’re paying premiums monthly or quarterly it’s very possible that your provider is charging a fee for this privilege. While the difference may not be huge, there’s generally some money to be saved by paying your annual premium in one lump sum at the start of the coverage cycle.

If you’d like to make sure your business has the best coverage, contact one of the experienced agents at John B Wright Insurance.