How Can I Save Money On Business Insurance?

The single biggest long-term savings is to develop an excellent safety program for your business. Whether your business is big or small you can take steps to minimize the risk of having a claim. Set an example to your employees on not just the compliance but the overall attitude of doing things in a safe manner. This attitude will save money with reduced insurance premiums and the expense of a claim - time lost, deductibles paid and possible retraining of employees.

Carefully review your business insurance coverage with your agent or broker. Consider a higher deductible and look at items like dropping collision coverage on an older vehicle. Often you can package all your business with one company to receive extra discounts or considerations.

Have you considered using a Risk Manager? Your organization may already be using a Safety Manager who does duties related with Risk Management.

If you belong to a professional or business organization there may be a group plan that you can access. These plans often are well tailored to your particular business needs and with many participants the rates can be lower then what is usually available.

Consider your operation and profitability. If certain activities are higher risk and yet you do not get a resulting increased profit share then you might cut insurance costs and improve your bottom line by improving a procedure, territory or delivery system.

We are in the process of moving from a "soft market" in business insurance with the insurance companies providing competitive quotes and having the capacity to write many different types of insurance. As the market "hardens" prices will go up. The re-insurers may no longer accept a certain class of business. The other effect of a hard market is that there are limited options for certain types of business.

Review your business policy with your broker. Consider your revenue for this year - will it stay the same, go down or go up this year? Is your inventory still as high? Do you have as many employees? Do you have coverage for Business Interruption? If you do not then you will bear any loss in this area out of your own pocket - this could be devastating.