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Ways To Minimize Commercial Insurance Costs

If you own a business, commercial insurance is a must. Depending on the type of business you own, you could need a number of different commercial policies. Having all of these different policies can come with a hefty price tag. The bad news is there’s no getting around having commercial insurance; just one mistake could lead to a lawsuit and even the loss of your business. The good news is that there are things that you can do to reduce the cost of your commercial insurance, and keep the future of your business secure.

Assess What You Really Need

illustration of a woman in business attire looking at a computer screen that says "risk assessment" on it — *In order to save money, you will need to assess what kind of coverage you need depending on the risks that can happen.*

Commercial insurance is 100% necessary, but you should really look at which policies are right for your business, so you know you’re protected but not overspending. The first type of policy to consider is property insurance to protect your building and its contents. If you have employees, you will need worker’s compensation insurance to protect you in the event that an employee gets hurt on the job. You will also most likely need general liability coverage to protect against lawsuits.

After purchasing those three major types of policy, you can determine whether you need other policies like cyber or professional liability insurance. Cyber liability will protect you in the event of a data breach, and professional liability will cover you in the event of an unfulfilled contract, mistake that leads to a client’s financial loss, etc.

No-Lapse Coverage

If you have a business that goes through slow seasons, it may be tempting to drop your insurance coverage when you hit a slow down. But you should know that doing so can have consequences. For example, if you continually drop your insurance, and then pick it back up when sales increase again, insurance companies will think twice about covering you. It is important to remain consistent in the eyes of the insurance company you’re working with. Not only that, but going through a slow season doesn’t mean that an accident or damage can’t still happen to your business! Keep your policies year round so you never have to worry about coverage.

different sized arrows, getting larger the lower it goes, with letters starting from A to G at the bottom — *Classify your employees correctly in order to avoid overpaying premiums.*

Classify Employees Properly

When you purchase workers compensation insurance, each of your workers need to be assigned a workers compensation classification code based on the type of work they perform. Your insurance company will use these codes as part of their formula for determining how much to charge you for your policy. Make sure your employees are classified correctly, otherwise you could end up paying higher premiums than necessary.

Security Is A Must

If, like most businesses, your business operates online, you have a lot of your customers’ sensitive information in your hands – and they expect you to protect it. To protect their information from security breaches, and your business from lawsuits and reputational damage, make sure you’re doing all you can to minimize the risk of cyber crime. Upgrade your systems, use VPNs, and talk to your insurance agent about cyber liability insurance.

Bundle Policies

As we mentioned above, your business will probably need at least general property and liability policies to be sufficiently covered. You might also need a few other types of policies. If you are looking to buy multiple policies, consider bundling to save money. Purchasing a business owner’s policy (BOP) can be cheaper than buying different policies individually.

Reduce Risks

If you want lower insurance rates, you will have to reduce risks within your business. If your insurance company sees your business as high risk, they will charge you more for your premiums. However, if you constantly train your staff, make sure that your business is clean and safe, and do everything you can to minimize claims, you can lower your premiums.

two bundles of money — *Policies with higher deductibles will have lower monthly premiums, which can help you save more.*

Opt For A Higher Deductible

Policies with higher deductibles have lower premiums. If you are looking for ways to save, consider opting for a higher deductible insurance plan to save on your monthly bill. Remember, though, to continue to minimize the risk of claims so you won’t have to worry about meeting your higher deductible.

Compare Plans

The best way to save the most money is by comparing all of your options. To do this quickly and easily, speak with an EZ agent, who will assess exactly what you need for your business. EZ.Insure works with all of the top-rated insurance companies in the country and can compare quotes instantly for you. One of our licensed agents will work with you to review your needs, and guide you through the whole process, at no cost to you. You could end up saving thousands of dollars a year just by working with one of our agents!. To get free instant quotes, simply enter your zip code in the bar above, or to speak to one of our agents call 888-615-4893.

Can Your Insurance Company Cancel Your Business Insurance Policy ?

One of the first steps in getting your business up and running is making sure it is insured. Once it is fully insured, you can rest easy knowing that your hard work is protected in the event of any mistakes, damages, or other liability issues. But it is important to remember that insurance is an ongoing commitment. If you don’t keep on top of it you could end up with a letter or call from your insurance company saying that your business policy is going to be canceled. In order to keep that from happening, be sure to avoid the following.

Filing Too Many Claims

Insurance companies are businesses, and, as such, they need to worry about their bottom lines. When they protect you, they take a risk in protecting you. If you process too many claims, your insurance company will come to the conclusion that you are not taking the proper steps to prevent claims from occurring. If you are not minimizing your risks, they may see you as negligent, which could violate your insurance conditions.

Not Keeping up with Payments

Again, insurance companies are businesses and, as with all businesses, if you don’t pay for something, then that business has the right to no longer work with you. If you fail to make a payment or make multiple late payments, that will send a red flag to the insurance company that you are not reliable and cannot keep up with your policy.

Inaccurate Application or Renewal Data

If you accidentally (or purposefully) provide inaccurate information to your insurance company during the application process, this gives them the right to cancel your policy. If you unintentionally provide inaccurate information, your insurer may continue to work with you if you correct the information. But in many cases they will cancel your policy and not work with you to fix the issue. If they find out that you intentionally gave false information, not only will they cancel the business policy retroactive to the date coverage first became active, but they will also notify the proper authorities. Knowingly providing false information to your insurance company is considered fraud, which is a felony.

Preventing Cancellation

illustration of a two agents with a headset and 24/7 underneath with a conversation bubble next to it — *An EZ.Insure agent will be there for you 24/7, keep you on track, and help prevent any cancellations.*

In order to avoid having your business insurance policy cancelled, you need to be upfront, pay your bills on time, and try your best to keep claims to a minimum. Accidents happen, which is understandable; but if multiple accidents keep happening, then your insurance company will believe that you are not trying to prevent these claims from happening.

In addition, if you have moved to a new area, or if anything about your business has changed, be sure to notify your insurance company immediately. If you realize that any information you provided was not correct, then notify your insurance company immediately.

Having a good insurance agent is key to helping you prevent any cancellations; they can also present your case if your insurer does decide to cancel your policy. EZ’s agents will do just that for you. Our agents are your biggest advocate and will always have your back. If you do end up losing your policy, contact an EZ agent and we will find you another commercial insurance plan that offers as much or more coverage than your current policy, and that saves you more money. To get started, enter your zip code in the bar above, or to speak directly to an agent, call 888-615-4893.

How To Save More On Business Insurance With EZ

It is easy to find cheap commercial insurance, but, more likely, a cheap plan will not provide the coverage that your business needs. If a policy is a lot less expensive than others, there is usually a reason: most cheap plans do not cover what other policies do. Saving money by cutting corners will just lead to insufficient protection, which can only end up costing your business money. Having the right business insurance is important for the success of your business and your bottom line. There are ways to find affordable commercial insurance with the proper coverage for your business so that you can save money in the long run.

caucasian woman sitting at a desk looking at her laptop with her hand on her chin — *You can get the most savings by understanding what kind of insurance your business really needs.*

Understand What You Need

Different types of businesses face different types of risks, and will need different types of commercial insurance. Some businesses require multiple insurance policies, while others require just one or two policies. Having a better understanding of exactly what your business needs will ensure that you’re covered in every eventuality.

If you run a moving company, for example, you will have to insure all of your commercial vehicles, as well as the workers who are driving them. You will also need commercial liability insurance to protect your business against claims that you damaged customer property. To make sure that you are covering every aspect of your business, consider speaking to an EZ agent. Our agents are educated and experienced in the business insurance industry, so they can advise you on what insurance your specific business needs.

Choose A Higher Deductible

The higher your deductible is, the lower your premiums will be. If you want to save money on insurance, then consider opting for a higher deductible. This will save you money on the premium costs, since your premiums would be lower than those of other plans with lower deductibles. But before opting for a higher deductible, make sure that you would be able to pay your deductible if something did happen.

Consider Paying in Full

You have the option to pay your insurance premiums in full for the year, or to pay in monthly installments. You can save money by choosing to pay for your policy in full, because many insurance companies offer discounts for up-front payment. If you plan accordingly and set money aside throughout the year, you can pay for your insurance policy in one payment and lower your premiums without losing any coverage.

Bundle!

Most insurance companies will offer a discount when you purchase multiple policies. It can be cheaper to buy a package policy such as a business-owners policy (BOP), as opposed to purchasing general liability insurance and commercial property insurance separately. Packaged policies, while cheaper, offer just as much coverage as separate policies.

Ways To Prevent Losses

body in a suit with caucasian hands pointing at an insurance policy that is being held by another set of hands — *If your insurance company has some recommendations to follow, then do so so you can save more.*

You can reduce your insurance premiums for certain types of coverage by following any recommendations given to you by your insurance company. This can be anywhere from increasing workplace safety measures to human resource interventions. Knowing what the recommendations are and following them can mean saving more money. Following these guidelines can also help to reduce the number of claims you make on your insurance, which can further lower your premiums – insurance companies tend to reward customers who haven’t made any claims.

Reduce Risks

If you have any outside third parties working for your business, you can save money by making sure that they have their own insurance coverage. This means that, if an accident or other loss occurs, you won’t be held liable and have to pay any claims. In addition, if you decide to work with another business, ask to be listed on their policy as an additional insured. By becoming an additional insured on their policy, you are minimizing your risk if something goes wrong.

Use An EZ Agent

Researching and comparing insurance can be difficult and time-consuming. Instead of feeling helpless and lost, contact an EZ agent. Working with one of our experienced insurance experts will help you save money without sacrificing coverage. What separates us from the rest is that we offer expert advice at no cost to you, and we work with all the top-rated insurance carriers in the United States. That means we can compare all available plans to find you the best coverage at the right price – and we’ll do it for free! We can also guide you towards a bundle so that you can save more money. Start saving money by entering your zip code in the bar above, or to speak directly to one of our licensed agents call 888-615-4893.

Additional Insured VS Loss Payee

Insurance terminology can be confusing, you’re a business owner, not an insurance expert. It can be difficult to differentiate between terms, but it is crucial to understand the differences in order to ensure that you are getting the right coverage, and that you are in compliance with your plan’s conditions. For example, there are two terms, “additional insured” and “loss payee,” that both describe a third party who requires special protection as part of your commercial insurance policy. The two terms may be similar in some ways, but are very different in terms of the protection offered to all parties involved.

Additional Insured

caucasian hand holding a pen and paper pointing to another set of hands — *You should request to be added to a business’ liability policy if you are being contracted to perform a job. It will protect you in case something goes wrong.*

Simply put, an additional insured is anyone added to an insurance policy who is not the primary policy holder. If your business contracts any outside workers or businesses that could be held liable for jobs that they perform while working with you, those third parties will often request to be added to your commercial liability policy. Adding them to your policy will mean that they will be covered for work done with your business or on your premises. You should also request to be added to a business’ liability policy if you are the one being contracted to perform a job.

For example, let’s say you hire a janitorial company to clean your workplace, and a customer or other person who doesn’t work for your business gets hurt on your premises because of something the janitorial company has done. If you have listed the janitorial company as an additional insured on your general liability insurance policy or business owners policy, BOP, then the janitorial company will be protected under your policy in case they are sued for negligence. The additional insured has liability protection, but they don’t have a legal first right to claim payments from the named insured’s insurance policy.

Loss Payee

A loss payee is a third party listed on a commercial property insurance policy’s declarations page who is entitled to all or a portion of the insurance claim payments in the event of a loss. When there is a loss payee, who is usually a finance company, bank, or other lender, listed on a policy, the insurance company will pay claims directly to the loss payee first before it makes payments to anyone else, including the policy owner. The named insured, or policy holder, comes second because loss payees have an insurable interest in the property.

For example, if your business takes out a loan to purchase a building, the mortgage company who is financing the building might require you to list them as a loss payee on your commercial insurance policy’s declarations page. So, if there is any damage to the property, such as a fire, or an accident, then the mortgage company’s interests will be protected. Whenever you file a damage claim, your insurance company will have to notify the loss payee (your mortgage company). The insurer will then issue a check to pay for repairs, made out to both the named insured (you) and the loss payee (the mortgage company).

The Difference

silver scale with a question mark on each side — *Additional insured and loss payee are similar, but the difference determines what protection you get.*

Additional insured and loss payees are both entitled to receive insurance benefits from the named insured’s (policy owner) policy. The main difference is that additional insured will receive liability protection, whereas loss payees will only receive property damage coverage. Additional insured generally cannot receive any payments for any property claims, unless they have a direct involvement in the claim. For example, if the janitorial service from above did not service an area of your business where a customer was injured, then they would have no ability to file a claim.

Whenever you work with another business that increases your business’s legal liability, you should consider requesting to be added as an additional insured on their policy. On the other hand, if you have a direct interest in investing in another business and are considering becoming their lender, then you should request to be added as a loss payee on their insurance policy. That way your interests are protected, and you will get first rights to claim proceeds from their insurance company in case of any damage.

You can’t add an additional insured or a loss payee to all types of small business insurance; these endorsements are only available on some small business insurance policies. To find out if you can add either to your insurance policy, and which one might be right for you, you should speak to an insurance agent. EZ.Insure offers highly-trained agents who will review your business insurance policies, make sure you are properly insured, and help you determine if a third-party request to be named as a loss payee or additional insured is reasonable. Make sure you’ve got the right coverage for your business at the right price by connecting with one of our agents. To get started, simply enter your zip code in the bar above, or to speak to an agent directly call 888-615-4893.

Common Errors & Omissions Claims

When you own a small business that offers advice or services, there’s always a risk of lawsuits due to errors and omissions. Even if you have done your job to the best of your ability, something can still go wrong. Sometimes customers just aren’t happy with your work, and they could decide to sue your business. However, a lot of errors and omissions (E&O) claims can be resolved before they become costly lawsuits. In order to prevent, or quickly resolve, any errors and omissions claims made against your business, you have to know what to expect. Here are the most common errors and omissions claims:

piece pf paper that says contract on it torn in half — *Breaking your contract can result in your customer losing money, in which they can sure you for.*

Breach of Contract

If you have a verbal or written contract with a customer, you have to adhere to that contract. If a customer suffers any financial loss due to a breach of contract on your part, they can sue to recover their financial loss. For example, if you missed a deadline to put up a website for a company you’re under contract with, they can sue you for any money that they are losing while the site isn’t up and running. The types of breach of contract include:

Anticipatory breach– a business tells the customer that they will not be fulfilling the terms of their contract
Minor breach– a business fails to live up to a small detail in the contract.
Material or fundamental breach– a breach that is extreme enough to nullify the contract completely.

Misrepresentation

One of the biggest mistakes that businesses can make is overstating their expertise, promising their clients something they cannot deliver, or not fully disclosing information. If your company misrepresents itself or doesn’t disclose information, resulting in financial or reputational loss to the customer, then you can expect a lawsuit to follow. The lawsuit will be labeled as intentional or fraudulent misrepresentation. For example, if a car dealer lies about the history of a used car and their customer later finds out their car was in an accident, this would be considered fraudulent misrepresentation.

different colored signs that says lying on them — *If you lie or even partially lie, then you can be sued for misrepresentation.*

If you’re not careful, you can be slapped with a lawsuit, no matter whether you have intentionally or unintentionally misrepresented your company. E&O misrepresentation claims can include:

Making a statement that is partially true.
Making a statement that is completely false.
Omitting details, or failing to disclose important information.

Negligence

Claims of negligence often occur when a business’ poor oversight leads to financial or even physical injury of another party. You could also be considered negligent if you communicate poorly with your customer, or if you fail to take reasonable care or control when providing your services. Even if you fully explain your prices and expected outcomes, a customer might form unrealistic expectations for your work. If you don’t meet their expectations, they might sue you.

Protecting Your Business

In order to protect your business, you should:

Create a detailed contract that both parties review and sign before work begins. Include expectations about deadlines, payments and any other agreed-upon expectations between you and the customer.
Make sure that you document everything that you’re doing so that you can prove you are getting the work done.
Always keep an open communication with your clients, especially if something goes wrong while you are under contract, or if there is a minor glitch. Prioritize honesty and transparency with your customers and let them know if you are going to miss a deadline, so you can manage expectations and work together to solve the problem.

Errors and omissions insurance is the best way to protect your company from a lawsuit and reduce the risk of losing your business because of a mistake. If you are sued, E&O insurance will pay your legal costs such as attorney’s fees, court fees, and settlement costs. As long as your policy is active at the time of the incident, you will be protected. You do not want to wait until something happens in order to be insured. Make sure that your business is fully protected in the event of an incident by speaking to an EZ agent. To find an affordable plan that gets you the most coverage with the most savings, enter your zip code in the bar above, or to speak directly to a licensed agent in your area, call 888-615-4893.

Commercial Insurance Renewal Checklist

Having commercial insurance is important for your business. The right coverage mitigates any financial risks and protects you in case of any unexpected events. To make sure that your business has adequate insurance coverage, you need to review your commercial insurance policies annually, rather than just allowing them to automatically renew. Using a business insurance renewal checklist will make it easier to assess your current needs and will make the renewal process go as smoothly as possible. You can also use a checklist to prepare you to speak with an insurance agent. An EZ agent will use the info you gather to help make sure you are fully covered, and to see if there are any discounts available.

two pages with data reports on them laying on a table next to a computer keyboard — *Review your financial statements, data, and property values.*

1. Gather Policies, Reports & Data

Before it is time to renew your commercial insurance policies, gather all your financial reports including profit and loss statements, so you can go over your real property values and locations, income generated from those properties, gross revenues, inventories and any other financial details related to your business. Any changes in your revenue affect your insurance; as revenue increases, your premiums will increase as well.

In addition to gathering all of your financial documents, you should also look at all of your insurance policies, and your workers’ compensation experience data rating sheet. Reviewing all of these documents together can help you determine if you need to lower your coverage, increase your coverage, or get rid of certain policies.

2. Review Any Changes You’ve Made to Your Business

If you have opened a new location, purchased new equipment, or updated your current building, this will affect your commercial insurance coverage. If your business has grown, then the coverage that you had from last year will not be sufficient. On the other hand, if you’ve pared down, then you might be paying for insurance that you don’t even need!

3. Review Changes To Your Staff

Have you hired any new employees? Have you lost some? Are some employees doing riskier work now than they were last year? If you’ve answered yes to any of these questions, then your current workers’ compensation coverage might need to be updated. The size of your payroll affects your workers’ compensation rate, so any time that employees join or leave your business, workers’ comp coverage levels should be adjusted. The insurance renewal process is the perfect opportunity to make sure that you have the appropriate workers’ comp coverage.

4. Check Policy Exclusions

When it is time to renew your insurance, make sure to double-check your policy exclusions to determine what events and circumstances your policies will and will not cover. Make sure that you are comfortable with these exclusions, and if you are not, speak to an EZ agent. Our agents will make sure that any particular event you want covered will be covered next year.

claims written on a blue post it note that is on top of a stack of paperwork with the word "claim form" on the top — *The less claims you have made, then the lower your rates may go down over time.*

5. Review Your Claims History

Losses and claims have a major effect on your insurance premiums. A history of claims will drive your premiums up, but if you have a clean loss history, your rates may go down over time. Assess how many claims you have made and why, and see if there is a way to prevent making them in the future. And if you have not had any claims or losses, speak to an EZ agent to see if you can get a discount on next year’s policy.

6. Choose The Right Agent

A good insurance agent will take the time to review all of these documents, statements, and changes to your company. They will also take the time to review your policies and make sure your business will be fully protected in the coming year. Even if there haven’t been any changes to your business, it is still good practice to regularly update your existing policies, and an EZ agent can check to see if there might be a better policy available to you.

Choosing the right agent is the best way to save money on your commercial insurance policies, and EZ has the best agents for the job. Our agents will assess your business’s needs and compare all available plans in your area at no cost to you. We truly care about your needs, which is why our services are always free. To get instant, accurate quotes, enter your zip code in the bar above, or to speak directly to one of our licensed agents, call 888-615-4893.