Posted on May 17, 2014
Every business owner can use a little extra savings on their commercial insurance policies. Taking the time to review policies can sometimes bring to light opportunities for reducing costs. Take a look at five ways every company can lower business insurance costs.
Review Policy Coverage on All Lines
Once you dust off your insurance file, review each commercial insurance policy carefully. Read over what each policy covers and look for items that might no longer be necessary. If payroll or certain aspects of operations have changed, it may be time to revise policies by adding new or dropping old, outdated coverage. If you have been paying for insurance that you no longer need, then eliminating that portion of coverage will bring an instant reduction in premiums.
Workers Compensation & General Liability Coverage Classification
Business owners can realize significant savings by evaluating the classification of workers for both workers comp and general liability. Because rates are based on the job each worker performs, it is possible there may be misclassifications. Clerical employees, for example, should not be included on a roofer's policy as a roofer, which has a much higher rate. Instead, there is a clerical rate that is much lower. Request that your insurance company help you review and properly classify your workforce.
Ask for Discounts or Better Rates
If you have been with your insurance company and broker for a while, it never hurts to ask if there are any discounts or better rates available to your company. Often, carriers can discuss their rates and help you find ways to reduce premiums. Your broker may learn something new about your business that could result in lower rates.
Consider Trade Associations
Many professional trade associations offer business insurance discounts to their members. Find an organization within your industry and become active in it. Not only can you benefit from potential premium discounts, but through networking, your company could increase business.
Employee Training & Safety
Training your employees can not only help them perform their job more effectively, but it also has the added benefit of reducing insurance premiums. Many insurance companies offer discounts for continued education and training for workers. Proper training also aids in preventing costly accidents or injuries, which affect not only insurance costs, but require extra time and resources to temporarily replace an injured worker. Implement a written safety program and keep employees trained so that they become more aware of procedures and how to safely conduct themselves and run equipment while on the job. Safety and training of employees can benefit all companies by reducing insurance expenses, and with a positive claim history, it can actually decrease rates overall.