Editor’s Note: Grasshopper has partnered with small business insurance experts, Simply Business. They have provided these tips on how to save on your business policy.

As a savvy small business owner, you understand the value of insurance as a safety net for the unexpected. But many people don’t know that getting covered doesn't have to cost a fortune. That’s where we come in.

7 Ways to Save on Your Business Insurance

1. Understand Your Risk Profile

Each industry carries its own set of risks, and being aware of these can help you tailor your insurance coverage appropriately. For example, a business that stores customer data might consider cyber liability insurance, whereas a tree service might need coverage for tools and equipment. You can avoid overspending on unnecessary coverage by pinpointing the specific threats your business may face.

2. Comply with State Regulations.

Insurance requirements can vary by state and industry, and these can serve as guidelines for the type and amount of coverage you need. By aligning your insurance policy with local or industry requirements, you can likely avoid the pitfalls of under or over-insuring for those types of coverages.

3. Leverage Industry Connections

Other business owners who have navigated the insurance landscape can be a resource for finding favorable rates and reliable coverage. Engaging with community forums, industry associations, and informal gatherings can unearth valuable insights and lead to cost-saving recommendations.

A good way to start could be with an online search of organizations in your area and for your type of business.

4. Get Online

Dedicating time to online research can pay dividends. Many insurance companies provide online resources that help you estimate the cost of your policy based on various factors specific to your business type and location.

At Simply Business, we work with leading national insurers. Spend a few minutes online, and we can shop for coverages and prices for you. In fact, you can quickly compare and save up to 20% on general liability insurance with quotes from top insurers.*

5. Opt for Higher Deductibles

A higher deductible means you'll pay more out of pocket in the event of a claim, but the reduced monthly or annual cost can make this a worthwhile trade-off. It's a balancing act between risk and reward. Businesses with a lower risk of claims or those with sufficient reserves may find this option particularly appealing.

6. Eliminate Unnecessary Coverage

Many businesses pay for insurance coverage they simply don’t need. So, it’s essential to review your policies as your business grows and changes. If your policy covers unlikely scenarios given your current business model or location, reducing these coverages can significantly cut costs.

7. Choose Payment Plans Wisely

The way you pay for your insurance also impacts your costs. For instance, some insurers offer the option to pay premiums monthly or annually.

Many of the monthly payment options do not include interest charges, which can make them more manageable and workable with your particular cash flow.

You can typically expect to put 25% down on the total price of the policy, then make payments for 10 months on your policy (your last month is usually covered in the down payment).

You’re Not Alone.

Navigating business insurance doesn’t have to be a daunting task. By understanding your specific needs, comparing options, and making informed choices about coverage and payment methods, you can tailor an insurance plan that provides essential protection without straining your finances.

Our online Resource Center is packed with guides, tools, and tips to help your small business cut costs and thrive. Here are a few more articles to help you get started:

Simply Business has partnered with Grasshopper to make getting the right business insurance for customers a fast, easy, and affordable process.

*Actual savings may vary based on the nature of your business, its location, and insurance provider appetite. Savings percentage is calculated using the average price difference of quotes from the Simply Business panel of insurance providers.