Money Saving Tips

5 Easy Tips for Saving Money on Business Insurance

1)Use of Deductibles:
One of the key components of a business insurance policy is a deductible. Business
policies give you the ability to take large deductibles and save significant premium
dollars. This is over looked most of the time because most insurance professionals
do not explain the advantages. By taking larger deductibles some business owners
can save 10% or higher on their premiums. A word of caution, do not risk more than
you can afford to lose. Consult your insurance professional and decide which
deductible level is appropriate to your situation and your business.

2)Credits on Work Comp from State Programs:
Most States have premium credit programs to lower work comp costs. Unfortunately many
business owners do not know about them. Most of these programs revolve around safety
and loss record, hourly wage scale, overtime costs, etc… Consult with your insurance
professional and see what is available in your State. You could save 15-20% off your work
comp premiums with some programs. It is definitely worth looking into.

3)Checking Your Auto and Equipment Values:
One of the easiest areas to cut premium costs is in values. If you have a business auto
policy or an equipment policy, regularly check the actual values against what is being
charged on the insurance policy. Many times the insurance companies are charging you
premium for values they would not pay when there is a claim. What happens most of the
time is that policies get renewed and values have depreciated, but your premiums do not
get adjusted. Consult with your insurance professional to review and bring in line your
auto and equipment values. You could see 5-10% savings on your policy premiums.

4)Understanding the Audit Process:
Business liability and work comp policies are audited by the insurance companies at the
end of each effective year. The process is done to "ante up" with the insurance company
any premium owed to them or if the company owes you. Payroll and sales are the two main
auditable exposures that are looked at. There are ways to reduce costs based on
understanding the rules of insurance auditing and underwriting. For example most
companies allow you to deduct a portion of over time pay off your payroll basis. Another
example that could possible save money would be the allowance of multiple different rate
and class codes if record keeping is adequate. Work with your insurance professional to
get to know the audit process. There are costs savings to be discovered.

5)Safety & Risk Management Programs:
It is an indisputable fact. Business owners that have developed safety and risk
management as a priority and have programs in place, will pay less in business insurance.
Insurance policies set rates based on loss history. If you are a business that has few to no
losses and the majority claims are small, then you will be charged less for insurance. If you
want to keep your insurance premiums down, make your business a safe and a low claim
establishment. Your premium savings will most likely pay for the cost to run safety
programs in a short amount of time.