Lower Your Corporate Insurance Cost With These 6 Tips

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Worldexecutivesdigest | Lower Your Corporate Insurance Cost With These 6 Tips | When you run a successful company, insurance is a critical part of your cost of doing business. Finding the appropriate level of coverage at the perfect price enables you to protect your company as well as your bottom line. If you think your corporate insurance premiums might be a bit high, here are five tips to help lower them.

Combine Coverages

Every business has a range of exposures, so you will require various coverages to protect the whole business. Commercial auto, general liability, and property insurance are a few options to consider. Combining these policies can be less expensive than purchasing separately. 

Evaluate Annually

When you receive your policy renewal notification, you probably pay it without much thought. Reviewing a standard insurance bill might not be high on your list of priorities. However, it is important to take the time to review these renewal documents when you receive them methodically. In fact, a conversation with your agent would be preferable so that you can ask questions about business model adjustments or rate changes. 

Minimize Risks and Increase Safety

Insurance companies are drawn to responsible clients that prioritize safety, and they often charge them less for their policies. You should create a safety plan for your employees and take advantage of risk control programs offered by your insurance carrier. Whether it’s human resources training or a theft-deterrent workshop, your willingness to focus on safety and embrace these professional development opportunities tells your insurer that you’re committed to loss prevention. 

Increase Your Deductible

Just like any basic insurance policy, the fastest and easiest way to drop the premiums is by raising the deductible, the amount you must pay when filing a claim. Larger companies can probably manage higher deductibles fairly easily, but smaller businesses may have a tighter budget and higher deductibles might fall out of their comfort zone. There is no hard and fast rule or chart to determine the “right” deductible; each company should identify its own needs and expenses and determine the size of the deductible that is both affordable and practical.

Pay Up Front

Payment plans for insurance premiums are convenient, but they are usually not free. If you have been paying your premiums on a payment plan, a fee is probably included for the privilege. These costs can be reduced with up-front payments. If that expense is too much for your business to handle, it may be wise to take one fiscal year to save up for the following year’s payment. It might be painful at the time when you are writing the big check, but it’s a positive business practice and will save you money in the long run. If it is impossible for your business to handle an up-front premium payment, this is potentially a sign of a cash flow problem, and you should also look into that.

Purchase Sufficient Coverage

Sometimes it takes a bit of trial and error to find the perfect level of coverage. If you purchase too much, you’ll find yourself paying for something that will never be used. If you don’t purchase enough, you could end up with coverage gaps that expose your business to damaging losses. A qualified agent or broker can help you to investigate your options and find the right balance between too much and too little. Price is always an important consideration, but it may not be wise to focus too exclusively on cost. Other important factors should come into play, such as the insurance carrier’s rating or claims process. 

Ultimately, there is no substitute for doing your research and working closely with your agent or broker to find the best business insurance package for your company at the best price.

Worldexecutivesdigest | Lower Your Corporate Insurance Cost With These 6 Tips