How to lower your business insurance premiums
One of the biggest expenses for any business owner is their insurance. Savvy business owners will understand that lowering your business insurance premiums is a continual process. The bottom line is that taking the time to review your premiums can result in savings. You should conduct this review annually or whenever there is a change to the business significant enough to warrant a review.
- Good organization is the first step in reducing your insurance premiums. Start by making sure you have a copy of all your policies in your insurance file. You will also want to make sure that there are copies of claims forms for each policy in the file. In addition you will want to create a separate off-site location for a copy of your policies and forms in case this file is destroyed.
- Carefully compare your insurance schedules to any vehicles and equipment that you actually own. You will want to make sure that your business still owns the vehicles that listed on the insurance policy. It can be easy to overlook if a particular piece of equipment was sold or is no longer used.
- Carefully compare all of your employees to the ones that are named on your insurance. Much like reviewing the equipment you own this step involves reviewing named drivers and/or key employees that are identified on policies to make sure these people are still with your company. It is surprising to learn that many employers simply fail to adjust their named insured endorsements when employees leave. Keep in mind that this can result in significant savings if the loss of the employee results in lower risk.
- Look for any irrelevant or repetitive coverage-Businesses change all the time and the changes can be dramatic. You may have coverage's that are no longer necessary. It is crucial to make sure that your coverage reflects the need of your business today.
- Work to maintain a consistent safety plan through every area of your business. The reason this can save you money is that a consistent safety plan will include the elimination of hazards that can become claims. You will want to make it a goal of your business to enforce a safety plan and follow through.
- Always classify your workforce in the correct manner-Insurance professionals report that significant savings can be achieved by making sure your workforce is correctly classified by your workers' compensation insurer and liability insurer. It is important to remember that your premiums are based on the type of workers used.
- Have a face to face with your insurance professional to discuss your premiums-This is perhaps the simplest step to reducing your insurance premiums. The simple fact is that too many businesses do not take the step of telling their insurer that they want a better rate. When you have this meeting insurers will discuss the premium in detail and will suggest ways to have it reduced or the insurer or insurance professional will learn something about the business they did not know that may result in lower premiums. Remember that it never hurts to ask.
- Become involved with trade organization or professional associations in your area-This is because most trade organizations or associations have affiliate members that are insurance companies. As a benefit of membership, your business may receive substantial insurance discounts. Best of all membership in such organizations is very reasonable and can lead to increased business through networking.
- Never stop training-To reduce insurance costs you should train your workforce and demand training as part of their employment. Keep in mind that most insurers will offer substantial discounts for a trained workforce. It can save you a substantial amount of money to find out what training will reduce rates and get your employees involved.
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