Commercial insurance can be expensive to some companies. Most businesses should never reduce coverage they need for a lower cost. However, having a plan that meets your needs and your budget is an option.
At least one time each year, review your business insurance. Discuss the last 12 months of claims. Look at your policy to consider current risks. Then, take a few additional steps. Doing so could give you a few ways to save money without reducing coverage.
Update Your Equipment Coverage
Often, businesses replace older equipment. Sometimes, they minimize. You may no longer have as many vehicles in your fleet. You may have a newer, more modern system with less risk in your location. These equipment changes and value can impact your business insurance. Be sure your policy reflects what you currently own and use in your company.
Think About Overlapping Coverage
Sometimes, businesses pay too much for insurance because they have overlapping policies. You often do not need policies that essentially provide the same protection. Look closely at your policies to determine what each one covers. For example, you might not need non-owned car coverage if you have a commercial auto plan.
Look Into Workers Compensation Coverage
It is very important to update your workers' compensation coverage annually. This is where many of your savings opportunities are. Specifically, look at the classification of your workers. Mistakes here are often common. And, if you do classify, say your sales team as a production worker, this could be increasing your rates needlessly. Also note claims here. If you have no filed claims in the last 12 months, look for more affordable options.
Put Safety at the Top of the List
Next, consider your location’s biggest claims risks. This is nearly always safety. Discuss any claims filed for safety concerns over the last 24 months. Are there ways to prevent these from occurring again? Are you able to update your OSHA guidelines to meet their goals? Put in place a safety training program. This can help reduce your costs, too.
Improve training of your employees. Be sure to join professional organizations associated with your business. And, consider a wellness incentive program for your workers. Taking these steps could help you reduce your business insurance. Ask your agent at 818-706-8625 for any discounts you qualify for as well. Many times, you will find plenty of ways to reduce costs without limiting coverage.
Additional Info: Top 5 Business Success Strategies for Beginners and 5 Tips for a More Secure Workplace