Think of this as a “bulk purchase discount” for insurance. When you take out more than one type of policy from the same insurer, such as general liability insurance and commercial property insurance together, insurers often offer you a better deal. This is because it is more efficient for them to manage several policies for a customer and, in addition, they transfer part of those savings to you. Requesting a business insurance quote for combination policies can help you see clearly the potential cost savings.
A BOP combines general liability insurance and commercial property insurance (which covers commercial property theft) at a reduced rate. So yes, business insurance is considered an initial cost, at least when a company takes out insurance before it officially starts operating and generating revenue. Small businesses may have unique business insurance needs, which require adding coverage to basic liability insurance. The number of employees can affect the cost of business insurance coverage, especially for policies such as workers' compensation insurance. Later, you may choose or have to take out more insurance policies to cover damages specific to your industry, such as insurance against cybersecurity threats.
Second, talk to your local insurance broker and ask about discounts or opportunities to combine packages that may be available, such as combining general liability insurance with other types of coverage. For example, general liability insurance in New York would cost more than comparable North Carolina general liability insurance due to each state's legal environment. These additional coverages can increase business insurance costs because the insurance company is faced with the possibility of increasing claim payments. Some insurance companies allow small businesses to combine general liability coverage with commercial property insurance in a business owners policy (BOP).
By carefully selecting the right coverages, requesting a personalized business insurance quote, adjusting deductibles to fit your financial comfort, and implementing risk management strategies, you can significantly and positively influence your insurance costs. General liability insurance, also called business liability or civil liability insurance, protects your company financially against claims for bodily injury or property damage resulting from your business activities. Check with your insurance company to see what other discounts they might offer on general liability insurance. Professional liability or errors and omissions (E&O) insurance policies are based on claims and only cover claims filed while your insurance is active.
