The US alone has a $2.6 trillion gross value in insurance premiums. While business insurance is incredibly vital, the premiums can pile up and get quite expensive. Fortunately, there are certain steps you can take to lower your business insurance premiums.
In this guide, we’ll explore some of the best insurance tips to help you lower your insurance premiums. Keep reading to find out what you can do to save costs on insurance.
1. Purchase Package Policies
One of the best ways to cut insurance premiums is by getting package deals from the same insurance company. For instance, you can get a business owner’s policy that can include general liability, business interruption, and commercial property insurance policies. You can also bundle up other policies like auto insurance instead of getting them individually.
2. Cut Unnecessary Coverage
Do you have adequate insurance, or is there a possibility of being overinsured? Do you have a policy limit that’s higher than necessary? Is it possible you’re paying for a product liability policy when it’s already covered under general liability insurance?
It’s critical for you to eliminate any unnecessary coverage or those that overlap each other. Additionally, your business may have changed over time, but you still have policies that cover risks that no longer exist.
For instance, you may have a policy that covers a building you already sold. Go through your policies with your insurance agents and cut what’s unnecessary.
3. Pay Premiums in Advance
Some insurance companies will offer reduced rates or a percentage off when a business pays premiums in advance. Paying your commercial insurance annually can be one of the best insurance tips you come across. Moreover, you may also want to lose your deductibles to lower your upfront out-of-pocket costs after an incident.
4. Reduce Risks
One of the best things you can do to lower commercial insurance premiums is to reduce risks. Get an appropriate safety plan in place, depending on your type of business. You can do things like installing a sprinkler system, fire alarms, and smoke detectors.
Use a safe to keep cash instead of the register and ensure you have adequate and proper safety equipment. Implement programs that keep your employees healthy and safe to lower your workers’ compensation premiums.
5. Categories Your Employees
The workers’ compensation insurance is influenced by industry classification. If you don’t categorize your employees properly, you may be paying higher premiums unnecessarily. Additionally, you need to update your insurance company every time an employee leaves the company.
6. Train Workers
Trained employees and workers are less likely to sustain job-related injuries because they perform their work properly. If your business sustains fewer losses, you’ll be able to pay lower premiums for your workers’ comp insurance.
Training is especially crucial when it comes to your drivers. Go the extra mile and install dash cameras on your vehicles to catch everything that happens. Read this article to learn more about how dash cameras can help you save on insurance.
Insurance Tips: How to Lower Insurance Premiums
If you have been looking to lower your business insurance premiums, these are some of the best insurance tips you can implement. For more informative pieces, please head over to our blog, where we have so much more!