Running a business has many expenses and it is important for business owners to look for ways to save money, especially after the disruptions of last year.
Business Insurance offers important coverage for your business and its assets, but can be costly.
To help you reduce your business insurance costs, we've come up with this step by step guide...
1. Get The Right Cover For You
Make sure you have the right amount of business insurance cover for your business. If you get too much, you’ll be paying for something you’ll never use.
However, if you don’t have enough, you’ll have gaps in your cover and be exposed. While it can be tempting to focus solely on cost, there are other factors to consider including the claims process and the rating of your insurer.
2. Pay Up-Front
Another way to reduce your insurance costs is by paying upfront, rather than in a payment plan. This will help you save money in the long run. This is also a good business strategy, because it shows a commitment to continuing to protect your company.
3. Reduce Risks
Insurance companies want to insure responsible clients.
In industries with higher risks of employee injury, you may find yourself paying higher premiums. Undertaking a safety training program or risk management review will help to reduce the chance that you’ll need to make a claim.
Ensure that all employees are properly trained in risk management procedures to avoid paying high premiums. Remember, preventing risks is much cheaper than paying for insurance cover for medical and rehabilitation expenses due to a workplace injury.
4. Improve Security Procedures
Security systems, fire sprinkler systems, worker safety programs, and driver training programs are a few measures that can reduce insurance costs. If you deal with sensitive customer data, it’s also important to ensure your cyber security measures are robust and up to date.
It’s all about reducing risk to reduce your insurance premium costs.
5. Evaluate Policies Annually
It’s important to take the time each year to evaluate your business insurance policy, rather than automatically renewing it.
Methodically review your policy and make adjustments to suit changes in your business, business model or rates. Ask your broker for advice on whether it’s still the right amount of cover for your business.
Learn more about business insurance and how it can help protect your business here.