As a business owner, you’re always on the lookout for ways to reduce expenses. This can be done in a number of ways e.g. cutting down overhead costs, minimizing how much is spent on office supplies, or reducing your insurance premiums. Depending on the size of your operation, your yearly insurance costs may range from manageable to quite a lot. Regardless of how much it currently is, it won’t hurt at all to get an even lower quote.
So, in this article, we want to outline three steps you can take to reduce how much you pay on commercial insurance. The best part about the tips below is that they seek to actually improve your business. This means you’re getting two benefits: optimizing how your business operates and bringing down your insurance costs. Let’s start with reviewing your current plan.
1. Review your current plan
If you’ve had the same coverage for some time, there’s a good chance that you’re carrying more insurance than you need. Maybe an equipment that’s no longer in use, employees who no longer work with you, or something else along those lines. Business processes change all the time, and it’s possible you no longer carry the risks you did when you got your original quote.
Check the condition of your vehicles, with the numbers of years you’ve had them and their current mileage, are they still worth the costs of collision and comprehensive insurance? If you’re likely to replace a vehicle instead of fix it, the type of coverage you have on it should reflect that.
And you shouldn’t only review your plan now, it’s essential to make this a recurring activity. Every couple of years and whenever you enact big changes that you think makes your business less of a risk, look to leverage on that to reduce your premiums. If you don’t have the time or expertise to do this, contact a commercial insurance specialist.
2. Show evidence that your business is well-run
Another approach you can take to cut down your insurance costs is to show some evidence that your business is well-run and you’ve put measures in place to minimize workplace hazards. You can do this by walking your insurance provider through the quality control procedures in place at your business location and how they reduce your exposure to risk. Similarly, you can have an external auditor carry out a risk assessment for your company or submit professional accreditation that shows how qualified your employees are to cut out/manage risk as well as proof of ongoing training. It also won’t hurt to show audit documents and proof that your finances are in order.
3. Organize regular safety training
Put plans in place to eliminate workplace hazards and ensure your workers’ safety. Additionally, set up regular safety training programs to sharpen your employees’ risk awareness and management. You need your employees on board to make this work as they’ll have more insight into the workplace hazards they face daily than you do.
Because it reduces their exposure to injuries and accidents, it should be easy to get employees to buy into the idea. And in addition to reducing your insurance costs, doing this also insulates your business from lawsuits and the work interruptions that typically follow workplace incidents.
Please note that in a bid to reduce your insurance premiums, you must guard against underinsurance. If your business is not fully covered, in the event of a business loss, any claims you want to make may be affected. So, strike a delicate balance between not paying too much for insurance and getting all the coverage you need.
If you require professional help to get your commercial insurance under control, you can schedule a quick consultation with our in-house insurance specialist at zero cost. All you have to do is follow this link and pick a time that works for you.
