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 your 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, but here are a few more quick tips to help you keep your costs as low as possible:
* Review your policy regularly. Make sure the deductibles you have in place still make sense based on the types and numbers of losses you’ve encountered during the last year or two. Also make sure the types and amounts of coverage you have in place still make sense for your risk profile.
* Make payments on time to avoid late fees and prevent a cancellation that could make it more difficult to get coverage in the future.
* Review your property values on a regular basis to ensure you’re not paying for too much coverage or putting your property at risk by having too little coverage.
* Perform a workplace health assessment to identify health-related risks and determine if you need to make changes in your health insurance plan and identify changes in your facilities that could help limit your risks.
* Consider physical upgrades like sprinkler systems or security alarms that could result in discounts on your premiums. When analyzing the return of these upgrades, compare the cost of installation with both the insurance savings you’ll receive and the potential reduction in risk to get the most accurate estimate of value.
* When a loss occurs, report it to your broker right away so you have a complete understanding of your rights as well as your obligations. Delays in reporting can result in a denial of your claim, and contacting your broker immediately also means you’ll have help in filing paperwork correctly and on time.
* Ask your agent or broker about potential discounts and be sure to keep your broker updated on any changes or improvements in your business, including loss prevention practices, that could qualify you for savings programs or reveal areas where your insurance coverage may no longer be adequate.
* Make sure to consider risk management in every business decision so you make the right trade-off between risk and opportunity.
* Finally, make sure you’re taking advantage of all the benefits your insurance company and brokerage offers, like free notary services or other perks. If you don’t ask, you could be missing out on some valuable benefits.
