Running a business requires a lot of insurance, because every avenue of risk requires its own coverage. Just like your personal insurance policies are split by asset and risk type, business insurance follows the same logic. Buying each policy separately can take a lot of time and money, but there are options out there that provide comprehensive coverage for manufacturers and wholesalers so you can buy a single policy with every coverage area you need served, including extended coverage in key areas like third-party liability as needed.
How Combined Policies Save You Money
When insurance companies write a combined policy, they often lower the cost for each form of coverage that would normally be separate, even if they aren’t linked through an overall policy maximum that applies to both. It’s simple logic, from a risk management perspective, because the chances of paying out the maximum in several forms of coverage in the same year are quite small.
Additionally, overall policy limits in addition to individual coverage area limits can save you money if they’re supported, by reducing risk for the insurer more. It’s risky to adopt if you don’t need it, but it can be a good way to control costs. Of course, there’s also the additional time and labor saved to consider. If your insurance review takes less time and the payments are consolidated so there’s less work to do to send them out, then you save labor costs when comparing a single policy to a constellation of separate services too.