Small business insurance for your property

With the recession showing little sign of disappearing, the pressure remains strong to save money and cut expenses. This starts with the property you occupy for your business. If you rent, you lose nothing by seeing whether it is possible to renegotiate the terms. Look around your neighborhood and find out what the realtors are asking for the current vacant space. Once you have a reasonably amount of comparative data, you are ready to talk with your landlord or management company.

If there is no movement, you could save thousands of dollars by moving to one of the alternative premises you found. As the owner, discussing the terms of the loan should be a regular item on the agenda between you and lenders. Then comes the annual property taxes. It is always worth appealing the assessment to ensure you do not pay any more tax than is absolutely necessary. It only costs a few dollars to lodge the appeal. Again, it is down to you to do a little research and find out what property has been selling for in your area. In this, remember the appeal cannot result in an increase in your tax liability so, apart from the cost of your time in turning up to argue the case, you cannot lose.

When times are hard, it can be easier to negotiate better terms so that all stay in business. This includes the cost of insurance. Obviously, there are going to be key persons and certain items of equipment that will always need the best possible coverage. But now is the time to look more closely at the contents in all your premises. Get out the accounts and see exactly where you are with depreciation payments. Have you already written off the cost of this equipment? Is it inefficient or simply out-of-date? As with rent and capital value for tax, this is also a good time to look around at the market. There are a significant number of businesses failing and liquidation sales are throwing almost new equipment into auction rooms for cash sale. It can be cost-effective to exclude old equipment from the insurance coverage. With any savings, you can even replace the inefficient with almost new equipment.

Now is the time to remember what took you out on your own. You were an entrepreneur then, happy to take the risk to get yourself started. Now you have been going for a year or so, the temptation is to stay safe and avoid spending. Yet, the more passive you are in hard times, the greater the risk of failure. Yes you need to keep your overheads low. Cutting out the redundant cover in your small business insurance portfolio is a good first step. But equally important is staying active, keeping morale high and investing for the future. This means every aspect of your business should come under scrutiny. Business insurance is only one of the ways in which you can save on costs. Talking to your insurance agent or the company direct is going to be necessary. Prepare by doing as much research as possible.

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