Decreasing costs and increasing profits. That is every business owner’s core business model, and finding new ways to do just that is the perpetual goal. While insurance can save your business from a host of unexpected challenges, you might be paying more on your premiums than necessary. Here are some factors that could be increasing your insurance costs.
Your Industry
Insurance premium rates are hugely dependent upon the type of industry involved. For example, high-risk industries such as construction, mining, and demolition are among the most expensive to insure. On the other hand, office or home-based companies that provide services such as accounting, financial planning, and consulting tend to have relatively low premiums. If you work in an industry that is expensive to insure, the best thing you can do is shop around. Don’t settle for high prices until you have thoroughly researched each of your options and looked into every possible insurance provider.
High Incident Rates
Just like with any insurance, high risk comes with higher premiums. Your standing with the Occupational Safety and Health Administration (OSHA) will directly impact the rate your insurance provider will offer. It is important to know that the OSHA is more likely to investigate your business if you have a high incident rate. As an employer, you are responsible for ensuring that your workplace is safe, complying with all OSHA regulations for your industry. You are also charged with providing the proper personal protective equipment and safety training for each employee. Workplace safety should be a top priority. By minimizing OSHA incidents, you can keep your premiums low.
Duplicate Coverage
Sometimes, you are unknowingly insuring certain aspects of your business with multiple policies. When you streamline your policies and remove any overlapping coverage, you can save money on your premiums. One way to offset the risk of paying for duplicate coverage is to purchase an insurance plan that combines multiple policies, such as with the Business Owner’s Policy (BOP), which combines business income insurance, commercial property insurance, and general liability insurance into one. You should also make sure to classify your business correctly, as your premiums will vary depending on the classification.
You already have plenty of business expenses without paying more than necessary on your business insurance. While it is critical to have the required insurance, and helpful to add optional coverage, you can save money by streamlining your policies, focusing on workplace safety, and shopping around.
Check out this article on how to cut what’s weighing your business down!