Choose a Higher Commercial Insurance Deductible

The deductible is the amount you agree to pay out of pocket for property damages and medical expenses in the even of an accident. Choosing a higher deductible will likely lower your auto insurance premium; however, it is important not to choose a higher deductible than you can afford.

In other words, you need to choose a deductible high enough to lower your annual premium, but not so high that you can't, say, pay the out-of-pocket expenses if your vehicle suffers damages.

Purchase Additional Liability Insurance

The minimum requirements for commercial liability insurance vary by state, but you will typically not be required by law to carry more than $100,000 liability coverage per person.

Unfortunately, with the rising cost of medical expenses in the U.S., the minimum amount might not be enough in the event of a serious accident. For this reason, you should consider purchasing more liability insurance than the minimum required, as the cost of maintaining a liability insurance policy is much less than cost of covering a lawsuit or paying for hospital bills out of pocket.

Maintain a Clean Driving Record

Maintaining a clean driving record can save you up to 25% on your insurance premium, which in turn will allow you to purchase additional coverage―such as collision or comprehensive coverage―if you so desire. You might even consider taking a defensive driving course, as many companies offer defensive driving course discounts.

NOTE: No matter how many commercial insurance companies you talk to, always be sure to inquire about every discount available to you.

Consider an Umbrella Policy

If your assets exceed $100,000―to include your house, car, and anything else you could lose in a lawsuit―consider purchasing an umbrella insurance policy. The purpose of an umbrella policy is to cover all expenses not covered by your standard liability insurance.

For example, if your liability insurance only covers $500,000 in medical and repair expenses, yet you are involved in an accident resulting $800,000 in expenses, your umbrella insurance policy will cover the remaining $300,000.

Umbrella insurance coverage is relatively inexpensive, though it can save you thousands in the event of an accident, which in turn could save your business. You can compare umbrella insurance rates online, or by contacting the Insurance Department in your state.