Overpaying on your commercial insurance premium can have serious consequences on your business’s financial health. To avoid this pitfall, here are some tips on how to save money on commercial insurance in New Jersey.
Get a Free Quote
Before you talk to an agent, make sure you have a handle on what you’re looking for. If you don’t know how much coverage is enough, or if your broker doesn’t ask pertinent questions about your business’s size and structure, then no one is getting what they need out of a commercial insurance quote. A good agent can only do so much if he or she doesn’t know exactly what kind of business needs what kind of insurance coverage. So before you start shopping around for policies, be sure that it’s clear in your mind how big your business is and how big it wants to be. Be aware of which kinds of businesses tend to get hit with a lot more liability claims than others; will yours fit that bill?
Shop Around
Make sure you’re not overpaying for your commercial insurance coverage by shopping around. Price-compare quotes from different companies to find the best rate possible, and see if there are any discount programs you qualify for. Even small price differences can save you hundreds of dollars a year. For example, say you’re spending $5,000 a year on commercial insurance; switching carriers could save as much as $100 a month or $1,200 a year—for an initial investment of only 20 minutes! The time spent saving is well worth it in comparison to just writing one more check. Plus, it never hurts to negotiate: many providers will work with you if you let them know that other vendors offered a better deal. Once again, using our previous example, let’s say after shopping around you notice one insurer still offers premium service at a lower rate than others—it never hurts to reach out and ask for that even lower price! Whether they can match their competitor’s offer may be dependent on how willing they are to help (and even how polite/persistent you are). Asking nicely won’t cost anything but five minutes of your time so don’t be afraid to negotiate! Remember: those savings add up fast!
Educate Yourself About your Insurance Options
You can avoid a headache later by taking some time upfront to educate yourself about your insurance options. The best way to do that is by speaking with an expert in commercial insurance NJ who can help you figure out which kinds of insurance you might need based on what your business does and how much it makes in revenue each year. Some companies may even be able to assist you in filling out applications for different types of coverage, making it easier for you down the road. Not all businesses have enough volume or transactions to require commercial insurance, but it’s always worth checking into these types of policies so that you’re not missing out on potential savings that could make a big difference for your business as it grows.
Look for Discounts and Promotions
As a commercial insurance customer, you’re entitled to discounts and promotions if you do business with your carrier for a long time. If you use the same insurance agent, he or she can take advantage of incentives from carriers and pass them along to you. Be sure to ask about any new discounts or promotions that might be available in your area. They can save you hundreds of dollars each year—which adds up over time. The trick is not waiting until renewal; ask now! As a bonus, it’s always a good idea to get multiple quotes when shopping for commercial insurance in NJ. Just make sure that the companies issuing those quotes are reputable before buying coverage from them.
File Accurately
When you’re shopping for commercial insurance, be sure you file all of your claims correctly. Keep in mind that different types of business insurance have different filing requirements. If you’re not sure about what kind of information needs to be submitted, talk with your agent or read your policy carefully. Improperly filing a claim can result in a decreased payout and a negative impact on your future premiums. It’s also important to make sure you submit claims quickly; generally speaking, having a deductible means that it takes longer for an insurer to pay out than it would if there wasn’t one.
Work with an Agent, Broker or Company you Trust
When it comes to insurance, there is a lot of money at stake. It can be difficult to get all your questions answered promptly if you don’t feel comfortable with your agent, broker, or company. This may not seem like much of an issue initially but when a claim needs to be filed in a hurry and something isn’t clear from your policies, a trust could make all the difference between paying and not paying for damages. We highly recommend getting more than one quote for any kind of insurance, which will help you find a competitive rate and give you options if there are any problems down the road.
