How to Lower the Insurance Cost for Your Appliance Repair Business
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 16
- 2 min read
Insurance is a necessary expense for any appliance repair business, but premiums can sometimes feel high. Understanding how insurers calculate rates and implementing smart strategies can help lower costs without sacrificing coverage. Here’s a practical guide to reducing your insurance premiums while keeping your business protected.
Understand What Affects Your Insurance Cost
Before you can lower your premiums, it’s important to know what drives the cost:
Business Size and Payroll: More employees or higher payroll generally increase premiums, especially for workers’ compensation.
Number of Vehicles: Using vans or trucks for service calls affects commercial auto insurance rates.
Type of Appliances Serviced: Working with high-risk appliances, like gas or refrigeration units, can raise premiums.
Claims History: Previous claims or accidents make your business appear riskier to insurers.
Coverage Limits and Deductibles: Higher coverage limits and lower deductibles increase premiums.
💡 Tip: Knowing these factors helps you identify where adjustments can make a real difference.
Strategies to Reduce Insurance Costs
Bundle Policies: Combining multiple insurance types, such as general liability, commercial property, and commercial auto, in a Business Owner’s Policy (BOP) often saves money.
Increase Deductibles: Opting for higher deductibles can lower your annual premium. Just ensure you have the funds to cover the deductible if a claim arises.
Invest in Safety: Safety training for employees, proper lifting techniques, and secure transportation for appliances can reduce the likelihood of accidents, which may lower premiums over time.
Maintain a Clean Claims History: Avoiding frequent small claims and addressing risks proactively helps your business appear less risky, which insurers reward with lower rates.
Regularly Review Your Coverage: Your business evolves, and so should your insurance. Remove coverage for unused vehicles or outdated tools, and adjust limits based on current operations.
Insurance Types to Focus On
While reducing costs, make sure you maintain essential coverage:
General Liability Insurance: Covers property damage or third-party injuries.
Workers’ Compensation: Protects employees and keeps your business compliant.
Commercial Property/Tools Coverage: Replaces stolen or damaged equipment.
Commercial Auto Insurance: Covers vehicles used for service calls.
💡 Pro Tip: Cutting coverage entirely can be risky. Instead, focus on smart adjustments that preserve protection while lowering costs.
Getting a Quote
The best way to find cost-effective coverage is to compare providers. Wexford Insurance specializes in appliance repair businesses and provides tailored options to balance cost and coverage: Get a Quote from Wexford Insurance.
