Business insurance is valuable to your company, but it can be a bit expensive. Most small- to medium-sized businesses work very hard to reduce any type of expenditure possible to ensure they have the capital to keep meeting their company's financial needs. Keeping this in mind, you may wonder about what you can do to lower your business insurance costs — as this can perhaps help you to keep more money on hand for your company's specific needs.

One way to lower costs is to raise your deductible. The insurance deductible is the amount of money you must pay out of pocket when you file a claim before your insurance company kicks in the rest. For example, if you have a $1,000 deductible on your policy and you file a claim for $4,500 worth of damage to your property, the insurance company can cut you a check for $3,500 and leave you responsible for the first $1,000 of that amount. The deductible is your share of the costs.

Keeping that in mind, realize that you should follow these rules about deductibles:

• If you purchase a new business insurance policy, consider how much cash you routinely have on hand that you could use to pay for these types of claims should they arise. What is routinely available to you for use in an emergency situation?
• Consider getting quotes for several types of policies with various coverage and deductible levels. Determine how much of a savings raising your deductible may offer.

If you can pay more in a deductible, do so. It will reduce how much you pay into your business insurance on a regular basis, helping you to save money overall. However, if you do not have funds on hand to pay for your business's emergency needs, do not raise your deductible — as you may find it hard to meet your financial obligations if you do.

The best route to take is to compare your options. Look at your business insurance quotes to determine how much coverage is right for you and how much of a deductible you can afford to maintain to meet any emergency need.

Get a quote today. Contact us today for more information on business insurance.