Wells Fargo Small Business Roundup

Securing insurance for your business can save you tens of thousands (if not millions) of dollars if a covered loss occurs. But you can begin saving money before you even purchase your policy by following these five pointers for choosing the most cost-effective coverage.¹

Comparison Shop—Insurance prices vary from policy to policy and from company to company. Use this to your benefit by finding an insurance company that offers the best policy options for your needs at the lowest rate. A business insurance agent who has experience working with small business owners can help you compare multiple quotes to determine the coverage that best suits your needs at the price that suits your budget.
Choose a Higher Deductible—Deductibles are the amount of money you pay before your insurance policy kicks in. The higher the deductible, the less you will pay for the policy. If you believe that odds are low that you'll have to file a claim—and you have enough cash reserves to cover smaller damages out of pocket—a higher deductible might make sense.
Buy a Package Policy—It can sometimes be more affordable to purchase a package policy rather than individually priced policies. One very popular package is a Business Owners Policy (BOP), which typically includes liability, property, and business interruption coverage.
Work Closely with Your Agent or Broker—Your business insurance agent can provide invaluable advice to help protect your business from unexpected disasters. But you also need to keep your business insurance agent informed about any major changes in your business. This includes major purchases, expansions, changes in hiring or the nature of your operation. Your insurance agent can conduct an insurance review to see how these changes might impact the insurance you need for your business and your rates.
Be Proactive About Ways to Prevent Losses—You may be able to lower your rates by employing risk-management techniques like:

Let price play a part in your decision, but don't give it the starring role. While comparing costs against coverage is always a good idea, keep in mind that the lowest price does not always translate into the best value. It's equally important to check the financial stability of your prospective insurer.

To determine the financial strength of an insurer, ask your business insurance agent or review its A.M. Best rating yourself for free at www.ambest.com. A.M. Best is a credit-rating company that analyzes insurance companies' financial stability and assigns letter grades ranging from "A++" to "S" based on an insurer's ability to fulfill policy holder obligations. When reviewing an insurer's rating, look for a grade of at least an A and the option to cancel your policy without being penalized if a rating is downgraded.