How to Get Lower Rates on Your Business Contents Insurance

Business contents insurance covers the property your business owns that is not explicitly covered in a property line. Essentially, your basic business property coverage will insure assets belonging to your building and physical property. Business contents insurance, on the other hand, insures assets within that property such as computers, machines and equipment and furniture. You can make a number of changes to your business in addition to your insurance policy to reduce the cost of your business contents insurance.


One of the largest factors affecting the cost of any insurance policy is location. Your location affects your rate, for example if you are located in an area with old buildings, your price can be increased. Similarly, your business contents policy can be more expensive due to exposures to theft and damage. Relocating to a more secure area can help reduce your costs by placing you in a lower risk zone. If your neighbors have less claims, this drives down the cost of your policy. For example, moving out of the city and into the suburbs can affect your policy price.

Update Your Facilities

The more up-to-date your facilities, the lower chance of loss due to theft or damage. Older buildings require more insurance claims each year than new, state-of-the-art facilities. For example, your computer servers should be located in a temperature controlled, moisture controlled room. Does your office have one of these currently? If you operate a factory, consider whether your facility is the best functional and secure location for your equipment. If not, consider relocating, and ask your insurance carrier how much the relocation could save you.

Update Your Security

Even if you are going to stay in the same facility with the same appointments, you can make minor changes to the security of that facility to better protect your property. You can list these changes when it is time to renew your insurance policy, and you will recognize savings. For example, update your fire alarms and security alarms. Try installing new windows and doors that are designed for better security of the building. Simply updating your doors to storm doors can save you hundreds of dollars each year on your policy. Within a few years, you will recover the cost, and you will also gain more peace of mind in the meantime.

Change Your Policy

Once you have made adjustments to your physical property, you can attempt to redesign your policy if you are still looking to save. To save on premium costs, you will have to opt for less coverage. This can mean one of two things: lowering your limits or raising your deductible. In both cases you are agreeing to pay for a larger percentage of your claims if they happen to occur. This is only an option if you have the liquidity to make payments should a claim arise. Otherwise, keeping your policy at the higher limit and lower deductible is a better option.

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