Insurance is a necessary business expense, but there are ways to reduce your premiums if your bottom line needs a little boost.

Here are five quick and easy ways to lower your firm’s insurance premiums and save you money.

1. Buy a package policy.

Purchasing an insurance package that bundles common coverages together in one offering will often result in substantial savings. Often called BOP (Business Owners Policy), this offering provides standard coverages and limits of liability that are appropriate for small-to-medium sized businesses.

2. Choose a higher deductible.

Deductibles represent the amount of money you pay before your insurance coverage kicks in. The higher the deductible the more you save. Raising your deductible from $250 to $1,000 may save you as much as 40% on your premiums.

3. Shop around.

Prices vary greatly from company to company, so it pays to shop around. Get the names of brokers/agents who specialize in your type of business. Call several so you can compare prices and services they may provide. Price is important, but make sure you also consider the agent’s experience and knowledge, the carrier’s security rating (demand an “A” rating or better), and the loss prevention services available.

4. Implement loss prevention measures.

When determining your rate, insurance companies give strong consideration to anything you may have implemented to help prevent losses. Make certain your agent advises the carrier about everything you may have implemented, including alarm systems, video surveillance, employee training, safety equipment, and more.

5. Work closely with your agent.

Your agent can provide valuable advice to help protect your business from unexpected disasters. Be sure to keep him/her informed about any major changes in your business, including purchases, expansions, and hiring. A qualified agent should advise you on the best ways to protect your business, including risks you should accept, ways to control some risks, and identifying those risks that should be insured and by how much.

In this uncertain economy, every penny counts. By following the tips above, you can reduce your insurance premiums and help improve your bottom line.

Dan Tharp is licensed in all states (except Alaska & Hawaii) and is the Vice President of Business Insurance Lines for Pearl Insurance. Dan has been assisting business owners in protecting their operations, customers, and employees for over 30 years. For questions regarding this blog post or any other insurance matter, he can be reached via phone at 800.447.4982 or email at [email protected].