Finding Security Savings: Reducing Your Business Insurance Costs
Updated: Nov 30, 2022
Every business owner knows that it is essential to make sure their products and services are protected, but did you know that your insurance policies could cost you more than they need to be? In this blog post, we'll discuss the benefits of reducing your business insurance costs. By following these tips, you can save on premiums and get better coverage for all of the risks associated with running a business!
Technology has made it cheaper to run your business, but it also brings new risks. One way for you to reduce the amount you are paying for insurance is by reducing the risks in your business. Training, security, and safety reviews should all be done together to make sure that your company runs well every day.
This way, you can tell an insurance company that you are responsible for making your business safer. If so, they will lower your rates. For example, if you introduce safety training and do risk audits, it will show the insurance company that you are less likely to make a claim because it is safer for everyone in the building.
Weigh your options before making commitments
The best way to cut your insurance costs is to be aware of what options you have before committing. If you do not do this, then you might end up with an insurance plan that does not give you a good deal. It can also be difficult to cancel the plan early. Scale your policies with your business performance
It is essential to look at your insurance options and what you need. You will need different things when you are a new company than when you are an old company. What was best two years ago may not be best now.
Take a list of your stuff and what it costs to replace them. It may be that you don't need coverage as much as your current plan offers, or maybe you will need a little more.
Check for overlapping policies.
Commercial insurance often overlaps with other types of insurance. For instance, if you have a general liability policy and an auto policy, your vehicles may be covered under both policies. If you have a commercial property and electronic data processing (EDP) policy, your computer equipment might be insured under both policies. You can reduce insurance costs by checking to see if these overlap and taking off one of them when they do.
Keep your security systems updated.
You can install a security system, buy a fire sprinkler, and have your workers do safety programs. In addition, you can get in touch with an expert security risk assessment to get the best picture of your security assets.
If you collect sensitive customer information, you need to take extra steps to make it more secure. If something bad happens, insurance companies will help you by paying if someone steals your information. Your broker or agent will help figure out what is safe for your business.
Pay your insurance premium upfront
If you've been paying on a payment plan, you are probably paying a fee for the privilege. However, you can reduce your final costs by making one larger payment at the beginning of each year. Or, if that is too expensive, try to save up and make one large payment next year.
Remind yourself that it's a good business practice and shows your commitment to protecting your company. If paying upfront seems impossible, try breaking down the savings for 1-2 years and ask if these savings are worth every penny. Consider discussing this with your accountant or CFO so they can help break down how you might be able to make payments over time.
Ask for discounts
It would help if you asked for discounts - yes, even when it comes to insurance plans. You can find them by looking for trade associations in your industry. There may also be companies that specialize in your industry and offer better prices.
The insurance world is complicated, and it can be hard to know what you need. But the truth is that most people don't have all of the information they need about their business, which means a lot of important security measures may not be in place.