There are almost as many business insurance discounts available as there are business insurance companies, but they can all be divided into five major types:
- – Safety insurance discount: If your business implements strategies to keep the business and the property safe, you can share these strategies with your insurance company for possible discounted insurance. These could be physical like installing burglar alarms, sprinklers, a high-quality roof, … etc or could be policy based strategies like a safety manual, regular safety training …etc. The safety insurance discount might not always be obvious so it’s always good to ask your agent an open ended question about what discounts are available and state all you do at your business that might qualify for an insurance discount. This is especially true for workers compensation which could be quite expensive. So make sure to mention things like ergonomic desks and high-quality personal protective equipment. Remember every US State manages their statutory requirements for worker’s compensation and employer’s liability differently. Talk to a pro about business insurance in Oregon, or specify that you have questions regarding one of the other 20+ states that we work in.
- – Bundling insurance discount: Packaging several types of business insurance policies with the same company could save you a lot more than you might think. So try not to shop one policy at a time simply because that’s the policy that is coming up for renewal soon or maybe that’s the most expensive policy … Always shop all your policies together and compare the rates as a package rather than individual policies.
- – Group insurance discount: In the business insurance world, It’s common for an insurance company to specialize in a business niche, like farms, wineries, grocery stores, non profits … These companies would usually give a special discount to businesses in the sector they specialize in. So make sure to ask your insurance agent if they have an insurance company that specializes in insuring business in your sector.
- – Loyalty insurance discount: The longer you are insured with the company, the better your rates would be in the long term. This is important to ask about especially if you are considering shopping around simply for rates. Often, a short time saving does not translate into long term savings. So keep this in mind before leaving your current insurance company for another.
- – High deductible discount: you might not always want a high deductible of course. However, if you are in a business that is considered high risk and your rate would be higher no matter what insurance company you have simply because of the business nature, this is a good discount to ask for and consider. However, be aware that lower rates don’t always start until you reach a certain level of deductible. So, make sure to ask for a high deductible at different levels to find out the level where the discount starts to make sense to consider.
Other Business Insurance Discount Factors
There are a lot more important factors that decide your insurance rate as a business than the insurance discount. The fire risk is affected by the likelihood of wildfires in your area, the circulation, and the potential flammability of your property. So, making sure fire extinguishers are available around the building, as well as investing in a sprinkler system, could mean more to the insurance company as far as risk analysis than most measures.
Also, the risk for theft is usually reduced by installing an anti theft device like a burglar alarm and having cameras installed inside and outside the building can help offset your insurance costs.
If your business is an online business, you are more at risk for hacking, and therefore your cyber security system is the most important investment for your business and taking proper measures to secure your customers’ data is what insurance companies would consider the most in deciding your insurance rates.
Some businesses come with higher risk for employees than others simply because of the nature of the business, especially when it comes to liability and workers compensation coverage. So, your investment in safety equipment and safety training could translate into substantial insurance savings.
Safety is of course not simply a concern for employees, but customers as well. This is especially true for businesses that are based on creating customer experience like travel and adventure tours. So a detail of all your safety equipment and measures must be shared with your insurance company to make sure you get every single insurance discount possible especially as these businesses tend to be the most expensive to insure due to the high liability risk.
This list is of course not a comprehensive one. Every business is different and every business presents a set of challenges. So making sure to have a thorough discussion with your agent is of the utmost importance and regular reviews are equally as important. So, if you have any questions or concerns about your business coverage and would like to discuss the risks that might arise in your business and possibly translate into an insurance claim, please reach out to us and we would be happy to review your policy and discuss all the possible discounts you might qualify for.
If you want guidance in selecting the right policy for your business, you can reach out to our team at Ashland Insurance online or give us a call!
541.482.0831 Ashland
541.857.0679 Medford