Business insurance isn’t cheap, but you can make it cheaper. There are a number of ways to lower your business insurance rates. Here are some suggestions:
Don’t carry redundant coverage. Are you insuring the same thing twice? In some cases, this is advisable. For instance, you want to insure your business property against common forms of damage as well as less likely forms that may be more likely because of where your offices are located—against floods and earthquakes, for instance. But if two different policies cover the same equipment for the same reason, get rid of one.
Don’t carry irrelevant coverage. A business changes over time. What you bought insurance to cover when you first started out may no longer need to be insured. Review what it is that you’ve bought insurance for. If your insurance covers a piece of equipment that you got rid of five years ago, it’s time to take it off your policy.
Adopt a safety plan. Your insurer wants to know that you’re a low-risk business. Adopt a safety plan and implement it, then let your insurer know. If there are safety posters around your premises, especially in the vicinity of dangerous equipment, your insurer will be impressed and may cut you a break on premiums.
Categorize yourself correctly. If your insurer thinks you’re a construction company, they’ll charge you higher premiums than if they think you contract construction work out to others. Make sure they know what work you do in-house and what all of your staff members do. Be clear about the riskiness of your business.
Join a trade organization. There’s almost always an organization of people who own companies that do the same thing you do. Join that organization and, for the cost membership fees, you may get a break in insurance rates. At the very least you’ll meet a lot of people who can give you advice about saving on insurance.
Ask for better rates. Discuss your rate problem with your insurance agent. There’s a good chance he or she will have advice about how to cut your insurance expenses. And if the advice isn’t forthcoming, consider getting a new insurance company.
Train your employees. Insurance companies like it if your employees know what they’re doing. A trained workforce gets substantially better rates and that makes it worth paying for training.