So many things require insurance coverage these days that it can add up to some pretty big expenses. If you’re looking for ways to lower your insurance costs, this series is the one for you.
In this last post of our cutting insurance cost series, we have some tips for those with business insurance. If you haven’t read the previous post in this series, we encourage you to do so!
Ways to Save Money on Business Insurance
No matter the size of your business, you’re going to need insurance coverage. As a businessperson you know that coverage doesn’t come cheap. Since you have to deal with the many other costs of running a business, you’re probably looking to save money wherever you can. To help you keep your insurance from draining the rest of your budget, consider these tips.
Categorize Employees Properly
Different businesses come with different levels of risk, so there are many employee categories to make sure everyone has proper coverage in case of an accident. However, improperly categorizing your employees can mean they’re receiving more coverage than necessary for their line of work, which can spike your insurance costs. Take time to make sure everyone is covered appropriately for the risk their job entails. Whenever you lose or gain employees, promptly report it to your insurance company, as this will also affect your costs.
Update Your Insurance File
Keeping a file of all your insurance policies means that your information is all in one place and easy to access whenever you need it. You’ll also want to keep a duplicate set of files in a secure, off-site location. This way, if your original files are damaged or destroyed, you’ll still have all your necessary information ready to go.
Improve Security Precautions
Your security precautions refer to both the ones for your building and the ones for your data. Making sure your building has fire alarm systems, sprinklers, driver training and worker safety programs, and security systems (as well as keeping all of these up to date) can reduce insurance costs. If your company works with sensitive data, you’ll want to make sure you have systems in place to reduce the risk of cyber crimes and your employees are aware of proper procedures. If you’re ever unsure about what you could improve, an insurance agent can help you identify at- risk areas.
Review Your Auto and Equipment Coverage
Your insurance policy may also cover vehicles and equipment that your business uses. As with your employees, it’s important to make sure your list of covered vehicles and equipment is up to date – there’s no sense in spending money on covering a vehicle that’s no longer in your possession after all. With older cars, the cost of auto physical damage coverage may not be worth the value of the vehicle, so you could potentially drop that coverage as well.
Pay Your Premium Up Front
Like many other payment plans, having an extended period of time to pay your premium can cost you more over time. While it can be difficult to pay your whole premium at once, you will save money in the long run. Putting in place a financial plan to be able to pay your premium up front can let you save throughout the year to prepare yourself. It also makes you acutely aware of exactly how much you are spending. Having trouble paying in a lump sum may indicate a bigger financial problem, such as poor cash flow, which you want to stop before it takes a toll on your business.
When you need help deciding which policy is right for you, contact Paul with TCG Insurance Solutions for more information or to receive a free quote.
“Courage is being scared to death, but saddling up anyway.” – John Wayne
We hope you have enjoyed our 8 series of ways to Cut insurance cost. If you enjoyed this post and the others, you can use the share buttons (to the left) to share it with your friends and colleagues. As always, please feel free to leave us a question or comment below – We’d love to hear from you.
Thanks for reading, Paul & Tracie Carrigan
Want new articles before they get published?
Subscribe to our Awesome Newsletter.