A decrease in insurance premiums for a business, without cutting corners, may seem like a hard process. If you do not approach the problem in the correct way it can be almost impossible to reduce costs. There are a few ways this can be accomplished, which will depend largely on your industry and what insurance coverage you need, compared to what you want. Let’s dig into a few ways and see if any of them can save you some cash on the premiums, without leaving you unprotected.
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- Compare Insurance Carriers: One of the easiest ways to cut your insurance premiums without cutting corners is to shop around. Use an online comparison site, like iSelect, that does all the work for you. All you need to do would be to sort through the offers that they match you with. It saves a ton of time, and we all know that time is money.
- Cut Excess Insurance Coverage: If you have read through your insurance policy (which you should always do) you will know what your coverage is, and what has been added to the policy. Some things are just automatically added to your business coverage because they are part of a pre-set package. Go through them and remove anything that you are being charged for that you do not need.
- Pay Yearly Insurance Premiums: It may cut a chunk of change out of your profits, but in the end it does save you money. There are a couple of reasons that this is true. First off, when you pay by the month you end up paying a higher premium, plus any charges that they tack onto it. The second way you save money is that because you pay for a year, there is no way for them to raise your premium throughout the year. Granted, they may try to bump the premiums up when it comes time to renew the policy, but you can jump back up to the first bullet point above.
- Buckle Down on Safety: What this means is that you need to have some safety protocols set in place to reduce employee injury. Assign someone that is safety conscious to be head of a safety committee. This not only includes your workers in safety protocols, but it will make them feel like they are working for a company that actually cares about their employees. Just keep in mind that when you appoint someone, you need to back them up with any decisions or reports that they file unless it is something that could make a bigger issue within the ranks.
- Classify Employees in The Correct Categories: When you have employees you know that you will have to have some type of compensation plan in place in case of injuries or death. Business insurance companies will ask you to classify each person that works for you in specific work-related categories. These classifications will show how dangerous the work conditions will be for that individual. For instance, if you have a worker that must climb up and down ladders all day, they will be classified as a higher risk than someone that sits in an office chair all day. If a person is not in a high-risk position, they need to be classified in a lower bracket to save you money on your premiums.
- Train Your People: This may seem like a no brainer, but it needs to be mentioned. The more training an employee has, the safer they will be because they have all the knowledge that they need to be competent in their tasks. Plus, they will be well versed on all the safety protocols that are set in place, and that needs to be followed. The safer the employees are, the less accidents that will happen. Less accidents means a decrease in premiums. This means that even though it will take more time out of the productivity of a person, and will cost more time in labor, it is well worth the efforts.
- Look Into Insurance Policy Packages: After checking into the coverage types that you need you will see that more than one type will be needed. This makes it easy for you to look into any packages that the companies offer. Usually, the more policies that you have, the cheaper the costs will be. Just so we are clear, here, if you get different types of policies, you will have an increase in premiums even if you bundle them together. The savings can be seen off the entire price of all the contracts because they will be combined into one big one.
These are the most common ways for you to save money on the cost of the premiums, without cutting any corners. You never want to cut corners on insurance because it covers you when it is needed, and eventually, it will be needed. As the old saying goes, “It is better to have it and not need it, then it is to need it and not have it.”