Premiums for business insurance are largely affected by the type of business, the number of workers employed, and the risks associated with the business. However, a business owner can reduce this amount through effectual analysis and subsequent changes of some crucial business aspects. Here are 7 tips that can assist in minimizing business insurance premiums:
1. Revise the Company Property
Due to busy schedules, business owners often forget to revise the list of property and equipment covered by their insurance provider. By routinely completing this revision, it is possible to confirm what equipment is owned by the company, and what has recently been sold or lost. If insured property no longer owned by the company is removed from the list, a business’ insurance premiums can be lowered drastically.
2. Revise the Employee List
Employees are usually insured under liability and workers compensation covers. Consequently, if a business houses a large amount of employees, it will have higher insurance premiums. Therefore, it is important to occasionally revise the list of employees within a business and remove individuals who do not currently work for the company. With a lowered list of employees, liability premiums will lower accordingly.
3. Eliminate Irrelevant and Repetitive Insurance Covers
Businesses usually undergo changes that can render some insurance coverage irrelevant. It’s therefore crucial to remove irrelevant insurance coverage every time there is a change to any aspect of the business (e.g., departments, business type, etc). It’s also important to look for any business aspects in particular that may be covered by more than one policy and limit them to single coverage.
4. Establish a Consistent Safety Plan
Business owners should come up with meritorious safety plan that effectively reduces the risks of insurance claims. This plan should also regularly be tracked and adhered to in order to guarantee lower premiums.
5. Classify Employees as Required
Classifying employees adequately and correctly prevents them from being insured for incorrect liabilities. It also allows insurance companies to correctly assess the risks and adjust a business’ premiums accordingly.
Painters, for example, could be easily confused for construction workers by an insurance company. If this were to occur, the premiums for a business would be raised accordingly, so it’s important to classify all employees properly.
5. Adequately Train Employees
Most insurance companies offer reasonable discounts to businesses that train their employees. It’s therefore crucial to effectively train each employee immediately after hiring him/her.
6. Enroll in Professional Associations
Insurance companies are often active in professional associations. Enrolling in such associations would thus favorably qualify a business to reasonable discounts by the members’ insurers.
For more information about Kankakee business insurance, give Homestar Insurance Services a call at 815-468-8763.