Lowering your commercial or business insurance premiums is something all business owners would like to achieve. Some factors in determining your insurance rate are beyond your control and some factors are those you can do something about. Experts suggest that you can reduce your insurance costs by following these guidelines which are outlined in detail below: review your insurance regularly, ensure that employees are classified correctly, maintain a consistent health and safety plan, consider a higher deductible, and discuss your premium and inquire about discounts with your insurance broker. Your insurance broker will be instrumental in helping you obtain the lowest rates possible because he or she will have access to several insurance companies and products.
Review Your Insurance Policies Regularly
To ensure that you are not overpaying by being over-insured, it is important to review your insurance policies annually or when there is a change to the business that is significant enough to justify a review. You may save you costs if you look for irrelevant or repetitive coverage. Your business can change over time and some coverage may no longer be necessary, such as if operations change, you outsource part of the business, or a portion of the business closes. You will also want to identify any coverage gaps and ensure that you are adequately covered.
In conducting the review, you should ensure that the named insured employees and/or named drivers on the policies are current. A system should be in place to adjust the named insured endorsements after an employee starts or when an employee leaves, especially if loss of the employee results in lower risk. Similarly, the equipment owned by the business, including automobiles, listed on the policy should be current. If some equipment is no longer owned or it was updated, ensuring the policy reflects this change can result in premium savings.
Ensure that Employees are Classified Correctly
You can achieve significant savings by ensuring that your workforce is correctly classified by your workers’ compensation insurer and liability insurer as your premiums are based in part on the type of workers used. For example, if you have a painting company and your workers incidentally uses ladders, you will want to ensure that your business is not classified as a construction business which has higher premiums than a painting company. Also, if you have both sales and manufacturing employees, you will want to ensure that the salespersons are not classified as line workers, which cost more to insure than your sales force.
Maintain a Consistent Health and Safety Plan
You can save costs with a consistent health and safety plan that entails regularly reviewing work processes, employees’ activities and the facility itself to ensure safe practices and the elimination of hazards that can become claims. You should record and track your safety plan as part of your regular business practice. Part of your health and safety plan can include a partial reimbursement of a health club membership for employees and/or offering first aid training for staff who are interested; having a safe and healthy workplace can lower your business insurance indirectly with fewer or less severe claims while also boosting employee morale.
Consider a Higher Deductible
A higher deductible generally results in a lower insurance premium. Before making any changes, however, you need to assess how much of a deductible your business will be able to pay at any given time in the event of an insured loss.
Discuss Your Premium and Inquire About Discounts With Your Insurance Broker
You should able to discuss your premium in detail with your insurance broker to ask if there are ways to lower your lower your premiums. You could inquire about what discounts are available and how you can access them. If the property has sprinklers, fire alarms or a burglar alarm system, discounts are often available. For commercial auto insurance, anti-theft devices and employees with driver education courses and good driving records may reduce premiums.
You may also be entitled to discounts you weren’t aware of, such as through membership in industry trade organizations or professional associations. Also, liquor liability premiums are reduced when servers are required to attend alcohol awareness training. It could be worthwhile to inquire how you can lower your rates, including asking about what training will result in discounts.
Contact Your HDF Insurance Broker in Edmonton
At HDF Insurance, we pride ourselves on providing a high quality of customer service. We are available to speak with you to discuss your commercial or business insurance. We can review your current coverage, identify gaps you may have in your insurance and pinpoint where your firm could be at risk. We are independent insurance brokers in the business of providing insurance products and services from a wide range of competitive insurance firms. We can also help you through the claims process if there is need. Contact us at HDF Insurance in Edmonton to discuss your insurance options. We can tailor a free insurance quote to your business needs.