Shopping for commercial property insurance

Shopping for commercial property insurance

One of the most effective ways to save on commercial property insurance is to begin shopping for coverage before you build, purchase, or lease a business property. Shopping in advance can help you understand exactly how a building´s characteristics will impact your premium.
Purchasing a commercial multi-peril policy can be another way to save. CMP policies combine multiple coverage forms into a single policy, typically for a lower premium than purchasing the coverage forms individually.
The following additional tips can also help you save money or avoid other pitfalls when buying a commercial property policy:

• Minimize all possible risks before applying for coverage. Examine your business carefully for factors that could contribute to the likelihood of an insurance claim. Improving employee safety, security, and inventory management can reduce the amount you pay for commercial property insurance and other types of coverage, such as workers´ compensation and general liability insurance. Most insurance companies also offer loss-control or risk-reduction services. Contact your agency or company for help identifying potential risks and implementing plans to eliminate them.
• Get quotes from several companies. Companies can have significantly different rates, even for the same or similar coverages. It pays to shop around. When comparing prices, make sure you´re comparing policies with similar coverage. Keep in mind that, while one policy might be cheaper than another, it might also provide less coverage. In general, it´s best to buy the policy that provides the most coverage you can afford.
• Consider higher deductibles. Higher deductibles can lower your premium, but remember that your out-of-pocket costs will be greater if you have a claim.