How to Lower Business Insurance Rates

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There are a number of different things that you can do to lower your business insurance rates depending on the specifics of your situation. Lower business insurance rates with help from an insurance professional in this free video clip.

Part of the Video Series: Insurance Information
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Video Transcript

Hi, this is David Sumpter, commercial insurance specialist with Wateridge Insurance in San Diego with a couple of tips on how to lower your commercial insurance costs. Let's start with the concept of shopping. It's never a bad idea maybe to take a look around and get another agent involved in shopping your policy. But I recommend letting your current broker get out to market first. What do I mean by that? Each insurance broker can approach an insurance carrier but then no other agents can approach that insurance carrier for you. So let your broker go out to the carriers that he recommends and then if you want to supplement that by have another agent look in to it for you, that's fine. Just realize that every time you bring in another agent, you lose leverage. What do I mean by leverage? For me and my clients I look at four to five to six different insurance carriers and leverage adding coverage here or taking away coverage here or changing pricing for the benefit of my client. I can't do that if I only have one carrier to leverage. So just something to keep in mind. Now let's talk about deductibles and coverage limits. If you increase your deductible, you're going to lower your premium typically, but don't get over don't get too greatly into increasing that deductible. You still have to pay the cost when the claim comes around. Coverage limits and additional coverages that are added by the policy to the policy by insurance carriers is another way to look at it. If there's something you think you really don't need, ask your broker. Maybe reducing that coverage or excluding it altogether could reduce your costs. Now something to think about that I've heard from a lot of folks is well what's driving the costs of my insurance policy? Well typically it's revenues, pay roll, the square footage you occupy or any number of different factors. But be careful when you think about decreasing those numbers to decrease those costs. The end of the year you probably have an audit, and when that audit comes, they're going to pick up the actual cost and you could end up paying more in the end. Finally, another thing to watch out for when you're trying to reduce costs is don't move to an insurance carrier with more exclusions if those exclusions in your policy are going to trigger non coverage when you need it. So rely on your broker to find out if that new insurance carrier has all the coverage that you need and doesn't exclude something that's really important for you. Bottom line is trust your broker. Brokers like myself and other brokers are trustworthy people. If you give us the chance to find the right coverage and pricing option more often than not you're going to find out you're getting a good job from your broker. My name is David Sumpter, I'm a commercial insurance specialist with Wateridge Insurance, and that's how to lower your costs on business insurance.

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