page 3
	Email to a friend  Printer friendly version More Resources • The Business Insurance You Need • Business Insurance Resources • Home-Based Business Resources Glossary • Business Interruption Insurance • Errors and Omissions Insurance • Workers' Compensation Insurance Related Resources • General Insurance Companies - Canada • Life Insurance Companies - Canada About Small Business: Canada Subscribe to the Free Newsletter Your Email Address:

How To Save Money On Business Insurance

The cost of all insurance has risen dramatically since 9-11 and home-based business insurance is no exception. How can you save money on home-based business insurance?

1) Prepare a home-based business insurance shopping list and prioritize your home-based business insurance needs. For instance, business interruption insurance would be nice to have, but if you're a professional home-based business owner offering financial planning services, you have much more need of errors and omissions insurance.

2) Look for home-based business insurance packages. Many insurance companies offer business insurance "packages" now that bundle types of insurance together. For instance, (just to name one), State Farm Insurance offers a Business In The Home Program which combines Property, Liability, Loss of Income and Records insurance policies. You save money by paying one premium rather than paying the premiums on different types of insurance separately.

3) Take advantage of group rates by purchasing your insurance through a professional or business organization. Many different business organizations offer insurance plans and/or discounts on business insurance to their members. The bigger the group, the more diffuse the risk and the lower the insurance rates are. You will have to pay to become a member of the group or association, of course, but you could still end up saving money compared to the cost of purchasing the same kind of business insurance the group offers on your own.

There are professional organizations for every business occupation from computer consultants through veterinarians. General business organizations, such as your local Chamber of Commerce, The Better Business Bureau and SOHO, also offer business insurance discounts. Your local Home-Based Business Association may also offer members lower prices on home-based business insurance; if not, it will certainly be able to provide you with some good leads.

4) Talk to your home insurance agent. Most companies that offer home insurance will provide additional insurance for home-based businesses by adding a rider to your existing home insurance policy. (If you go this route, however, be sure that the rider includes all the types of insurance your home-based business needs, because these riders generally exclude product liability, disability insurance, or professional liability insurance.)

5) Compare, compare, compare. Before purchasing any business insurance, do your homework and get quotes from several different companies. The first deal you hear may not be the best deal. Start with investigating professional and/or business groups related to your home-based business activities and their insurance benefits because these groups offer other benefits as well, and then approach several different insurance agents to see how much such insurance would cost you as a "private" person.

When your research is done, bite the bullet and get the home-based business insurance you need. It will seem expensive, no matter how good a deal you get. But the cost of not having home-based business insurance could be so much higher.