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Lowering Your Costs

Reel in those insurance costs with these money-saving tips.
July 12, 2004

As with most other things, when it comes to insurance, you get what you pay for. Don't pay to insurance against minor losses, but don't ignore real perils just because coverage carries hefty premiums.

You can lower your premiums is you take a higher deductible. Many agents recommend taking higher deductibles on property insurance and putting the money you save toward additional liability coverage instead.

How much can you afford for a deductible or uninsured risk? Look at your cash flow. If you can pay for a loss out of cash on hand, consider not insuring it.

You can also save money on insurance by obtaining it through a trade group or association. Many associations offer insurance tailored to your industry needs--everything from disability and health to liability and property coverage. You can also help keep insurance costs down by practicing these good insurance habits:

Excerpted from The Small Business Encyclopedia, Start Your Own Business and Entrepreneur magazine ("Needs to Know"). All information is intended to be general in nature, without regard to specific geographical areas or circumstances, and should only be relied upon after consulting an appropriate expert, such as an insurance agent.