If you own or manage your own business, keeping it properly protected is very important. One of the best ways to do this today is by having a quality business insurance plan in place. While business insurance is very important, it can also be extremely expensive. Fortunately, there are four things that you can do to reduce the expense of your business insurance.
Reduce Perceived Risk
The cost of your insurance premiums are based on the perceived risk that the insurance company is taking on. Because of this, you should look for ways to make your business operate more safely and be a less risky venture for the insurance company to provide coverage to. Some of the best ways to do this would include staying compliant with regulations, reducing workplace accidents, and improving your company reputation.
Manage Employee Records
One of the biggest causes of higher insurance rates for a business is the amount of staffing that it has. Whenever you hire a new employee, you’re taking on a certain level of liability for that person every day that they are in your place of business. With each additional employee added, your liability and workers compensation insurance policies will increase in cost. Because of this, it is important to notify your insurance company as soon as an employee leaves your company as this could lead to an immediate reduction in your insurance costs.
Improve Security
Another way that you can reduce your insurance costs is by improving your onsite security. One of the reasons why business insurance is high is that you are paying for protection against theft, vandalism, and other crimes. According to Pro-Vigil, the use of video monitoring is growing as a preferred method of security surveillance, rather than security guards, because “live guards do come with a number of drawbacks. For one, they can’t be everywhere at once….Actual security guards also need proper training to be able to handle the large number of situations they may find themselves in. In addition to that, you need to provide them with the right equipment. All of this costs money, a cost that can be minimized when using remote video surveillance systems.” If you are willing to invest in a security system that will include alarms and a video monitoring product and service, you could drastically reduce your risk of being victimized. This would then result in lower risk to the insurance company and lower rates for your business.
Shop Around
When you are looking to reduce your business insurance expenses, it is important to continue to shop around for new rates. There are many different business insurance providers available today and all of these companies have different methods and processes for underwriting risk. Because of this, you can often get the same level of coverage for a lower rate if you are willing to shop around to find the best deal. When it comes to learning more about business insurance, Inc. reassures that “The Internet has made it considerably easier for businesses to research their insurance options, determine their needs and figure out ways to get the most comprehensive coverage for the lowest cost. First, you want to study the subject and figure out ways you can save money, whether through higher deductibles or umbrella insurance. The good news is that many professional organizations and associations have group rates with insurance companies for their members.”
If your business insurance costs are getting too high, you could also consider changing coverage. Increasing deductibles and reducing coverage could reduce your costs.