Having the right insurance is an important part of protecting your business and managing risk, but if you're like most businesses you still want to keep insurance costs as low as possible for the sake of your bottom line.
Having a risk management plan in place is one important way to control your insurance expenses. For a general overview of risk and coverage strategies, see Insurance and Risk Management Overview.
Ways to lower your insurance costs
- Review your policy regularly. Make sure the deductibles you have in place still make sense based on the types and number of losses you've encountered over the last year or two, and confirm the types and amounts of coverage still match your risk profile.
- Pay on time. Make payments on time to avoid late fees and to prevent a cancellation that could make future coverage more difficult or expensive.
- Check property values. Review your property values on a regular basis so you're not paying for too much coverage or leaving property underinsured.
- Perform a workplace health assessment. Identify health-related risks and determine whether changes in your health plan or facilities could reduce exposures; for related guidance see Insurance insights: healthcare costs, workplace risk, home selling, and auto fraud.
- Consider physical upgrades. Sprinkler systems, security alarms, and other loss-control improvements can lead to premium discounts; when evaluating upgrades, compare installation costs with both insurance savings and the potential reduction in risk.
- Report losses promptly. When a loss occurs, report it to your broker right away so you understand your rights and obligations; delays can result in a denial and slow the claims process.
- Ask about discounts. ask your agent or broker about potential discounts and keep them updated on improvements or loss-prevention practices that could qualify you for savings.
- Factor risk into decisions. Consider risk management in business decisions so you balance risk and opportunity effectively.
- Use available benefits. Make sure you're taking advantage of any perks your insurer or broker provides, such as free services or member programs you already pay for.
Frequently Asked Questions
How often should I review my business insurance policy?
Review your policy at least annually or after any significant change to your operations, property, or loss experience to ensure coverage and deductibles still fit your needs.
Will installing safety equipment always lower my premiums?
Upgrades like alarms or sprinklers can reduce premiums, but savings vary by insurer and the size of the risk; weigh installation costs against expected insurance savings and risk reduction.
What should I do immediately after a loss?
Report the loss to your broker or insurer promptly, document damage, and follow claims instructions to avoid delays or denials.
How can I find out about discounts I may qualify for?
Discuss your business improvements and loss-prevention practices with your broker or ask your agent to review potential savings opportunities.