Business Insurance Costs

What can a business owner do to minimize their high insurance cost? Before considering sacrificing the amount of protection a business carries to save money, consider the following strategies:

1. Review your coverage:

a. Take a close look at your insurance. Could you increase the deductibles to lower your premium?

b. Are you carrying physical damage coverage on commercial vehicles that no longer make financial sense due to age, wear, or other characteristics?

c. Are you insuring items you could replace out of pocket? Are there pieces of equipment that are insured when they could be replaced from operating funds without submitting a claim?

2. Review your exposures:

a. Could you reduce the premium by installing an alarm system or fire protection system? Would these premium savings offset the cost of the system?

b. Could you join an industry safety group which could help you implement programs that would reduce the cost or make the insurance company more interested in providing coverage?

3. Identify your insurance goals:

a. Do you need an insurance company that can provide loss control services?

b. Do you need an insurance company that can provide claim-handling services for your Workers Compensation insurance?

c. Do you need an insurance company that will allow you to make payments by phone or on-line 24/7?

d. Do you need an insurance company with a local agent/representative who can assist you in your insurance solutions?

Shopping and price are not the only issues in insurance. What you don't know can cost you more in the long run than you could ever save in premiums. Discuss your situation with an insurance professional and choose what works for you.