There are several ways businesses can reduce their insurance costs - but not so many ways. In order to reduce insurance costs, business representatives may consider three very broad strategies: find a better policy or insurance provider, raise their deductibles, regularly inform their agents about the way business is going, and improve security procedures.
The first strategy can be undertaken at any point in time, but preferably before any insurance policy is ever subscribed. It may take time to ask one, two, three, ten, twenty insurance providers for a quote based on one’s detailed needs. But then again there are websites such as the one you’re browsing now where business representative may ask for multiple quotes from just one place and one request. There will certainly be a proposal or two which will open the way for an opportunity to reduce insurance costs.
Raising deductibles is another strategy. The higher the deductible, the lower the insurance costs. Businesses need more financial resources to sustain such a strategy.
It’s also essential to inform your business insurance agent as often as possible about how your company is going in order to reduce insurance costs. New customers, higher turnover, new recruitments can all lead to changes in insurance premium prices.
Finally, the most effective way to reduce insurance costs is to improve security procedures and features in your company. If your warehouse is made more secure, if you’ve installed security cameras, if you’ve trained your staff to follow security procedures, keep records of these endeavours and submit them to the insurance agent. This will greatly help.
- How much does a business insurance cost?
- How is employers’ liability insurance calculated?