A lot of business owners believe that they pay too much for their small business insurance and some see their premiums increase each year. There are many ways that business owners can save on premiums. While each policy is different and built to suit your unique operation, there are some basic areas of exposure that can easily be addressed and can have an impact on premiums. Check out our list of 6 tips to improve your standing with insurance companies.
Begin With Your Risk Plan and Loss History
1. Risk management
Understand your business risks and identify sources of potential losses: this is part of risk management. Examples would include: installing an alarm system to avoid theft losses for your store or office; as well as having good general property maintenance including debris/wet floor/snow/ice removal in order to avoid slip and fall claims. This is important whether you are a landlord or renting a space. Insurers always offer better rates to those with good house keeping and a risk-management attitude.
2. Loss History
A good risk management plan can help prevent certain types of losses. Insurers always review past claim history when writing a new policy or renewing an existing policy. If a business has had several small claims, he or she will have to pay a higher premium. A business owner may want to absorb small losses in order to save for larger claims.
3. Do not miss payments
Cancellation for non-payment is the most unfavorable factor that may affect your premium. Missed payments may prevent you from being eligible for coverages with some insurance companies.
4. Use of Insured sub-trades
If your business needs to use subcontractors, make sure that the subcontractors you use are properly insured. Ask them to add you as an additional insured to their liability policies.
Understand the Business of Insurance
5. Bundle your policies
Imagine bundling your insurance policies for home, auto and liability like buying in bulk at Costco; because you’re buying in larger quantities you are more likely to receive a better deal. This can be a big help when trying to save.
6. Use a broker
A broker may be the most effective resource you can use to reduce your premiums. Brokers deal with a lot of insurers and seek alternate quotes from different companies and can find the best coverage with the most favourable premiums for your business. Talk to our experts today and they’ll be happy to answer your questions and address any concerns you may have about your current policy.
Small business insurance is an industry and a business of its own. However, with these tips and a broker on your side, you can be sure that you are advantageous when it comes to reducing both your operation’s risk exposure as well as your level of premium.