Liability insurance for any business or practice can be enormously expensive. But a few cost-cutting strategies can help you buy more insurance protection or pay smaller premiums: 1) Segregate the costs for each type of insurance you now own. You may discover that one type of coverage tripled in cost over the years while other coverage has decreased. Which coverage is still a good buy? Which should you reduce or eliminate? 2) Increase your deductibles. Absorb whatever losses you can afford. You’ll substantially reduce your premiums. 3) Utilize free programs that cut insurance costs. For instance, insurance companies reduce vehicle insurance premiums by enrolling risky drivers in drivers’ education classes. 4) ‘Red-line’ or distressed area businesses may qualify for federal or government subsidized insurance. Inquire with your state insurance commissioner. 5) Your trade association might deliver substantial savings if you buy the liability insurance they sponsor. 6) Do you own multiple businesses? Buy a package policy. It can reduce your premiums by 25 percent or more. 7) Buy only vital insurance. For instance, as your equipment depreciates, lower its coverage. Insurance companies pay only replacement values for lost assets. Excess coverage wastes money. 8) Shop. Insurance rates are regulated in only several states. Once you know the coverage you want, get five bids. Repeat the process annually. Today’s lowest costs insurer may be next year’s highest.