The Insurance Information Institute released a list of methodsyesterday that small business owners and risk managers can use tocut their company's insurance costs in lean economic times.

New York-based I.I.I. suggested the following eight ways to savemoney on insurance coverage:

1. Shop around. Prices vary from company to company. Get thenames of companies or brokers who specialize in the type ofbusiness that needs coverage and call several to compare prices andget a feel for the types of services they would provide.

Ask the agent or company that provides personal insurancewhether they offer business insurance. It is also important to picka company that is financially stable. Check the financial health ofa potential insurer with rating companies such as A.M. Best Co. andStandard & Poor's.

2. Look at group rates, purchasing insurance through a businessor professional organization to save money. Many different businessorganizations offer insurance plans and/or discounts on businessinsurance to members. The bigger the group, usually the lower theinsurance premiums. The savings typically outweigh any memberdues.

There are professional organizations for almost every businessoccupation from electricians and plumbers to writers and artists.General business organizations, such as a local Chamber of Commerceand the Better Business Bureau, also offer business insurancediscounts. A local home-based business association may offer lowerprices on home-based business insurance.

3. Choose a higher deductible. Deductibles represent the amountof money paid before the insurance policy kicks in. The higher thedeductible, the less paid in premiums for the policy.

4. Consider a package policy. A business owners policy (BOP) isoften significantly less expensive than a self-designed plan. BOPsinclude: property insurance for buildings and company-ownedcontents; business interruption insurance, which covers the loss ofincome resulting from an insured event (such as a fire) thatdisrupts the operations of the business; and liability protection,which covers a company's legal responsibility for the harm it maycause to others.

To determine whether a package policy is suitable, inventory thebusiness property to determine its value and whether it needs to beinsured, then compare the property and values to what is availablein a particular package.

5. Set up a risk management/loss reduction program. Insurerswill often lower rates if a program is put into place that willminimize losses from fire, theft, and employee and customerinjuries. These can include workplace safety training programs,disaster preparation and human resource intervention.

Consider installing a security or fire system. If the businessuses vehicles, install anti-theft devices and hire drivers withgood driving records. If possible, reassign drivers with baddriving records to nondriving tasks.

Ask what can be done to reduce risks such as fire orwork-related accidents and review the procedures that should be inplace in the event the business suffers a major catastrophe.

5. Consider relocating the business. Deciding whether torelocate depends, to a large extent, on the kind of business beingoperated and where it is moved to. Moving from a downtown area to asuburb, for example, may reduce premiums on property and vehicleinsurance, and even workers' compensation insurance.

6. Work closely with an agent or broker. An insuranceprofessional can provide invaluable advice to help protect abusiness. It is important to keep the insurer informed about anychanges in the business operations. This includes major purchases,expansions or changes in hiring or in the nature of operations.

7. Have the right amount and type of coverage.

Part of the decision about what insurance to buy depends on thenature of the business. For example, if the business has a lot ofassets, it might consider theft and property damage insurance. Lifeinsurance might be considered for the business owner and criticalpersonnel in the organization.

Various other forms of insurance may be considered, for example,directors and officers (if there is a board of directors) orbusiness interruption.

8. Having the right amount and type of coverage along with acarefully developed business plan that includes disasterpreparedness can save money in the long run. Be sure to keep theagent fully apprised of any changes within the business that mightnecessitate changes in insurance coverage. Such changes mayinclude: adding employees, expanding, increasing inventory ormaterials, purchasing major equipment such as tools or vehicles,and adding suppliers.

I.I.I. said more information is on its Web site at www.iii.org,and the publication, "Insuring Your Business: A Small BusinessOwners' Guide to Insurance, is available online or in a printedition from the I.I.I. store for $28, with quantity discountsavailable.