Small business insurance premiums represent a significant expense for Worcester area companies. Property insurance, liability coverage, workers compensation, and other necessary coverages quickly add up. Fortunately, it is often possible to reduce your premiums with a little effort.
How to Reduce Your Small Business Insurance Premiums
As your business changes and grows, your insurance needs to change with it. Keeping up to date on your policies by doing a periodic review helps reduce your premium costs ensuring you are only paying for the coverage you need. During this process, you may also find dangerous coverage gaps for your Worcester business. Once you have gathered all your current insurance documents, you can begin your review.
1. Meet with your local small business insurance agent
It’s important to set aside time each year to meet with your Worcester area insurance agent. During this meeting you can inform your agent of any recent or upcoming changes to your business, so they can advise you on any insurance changes that may need to be made. Additionally, your agent will be up to date on any new insurance regulations and risks, so you can be sure you have the most appropriate coverage.
2. Compare what is covered to what you actually have
Company cars, equipment, and specific employees are all often named in your small business insurance policy. Ideally, you would change your insurance policy to reflect changes as they happen, but often this is overlooked. You should review your covered assets and employees annually, and update the policy to reflect any changes that have occurred.
3. Look for excess coverage areas
If your business operations have changed, you may find that you’re paying for coverage that’s now irrelevant to your company. Similarly, if you have multiple insurance policies, there may be overlapping coverage. By reducing these situations, you can drastically reduce your insurance premiums.
4. Take advantage of insurance discounts
Many carriers offer discounts to companies who reduce their risk of accidents. Engage employees in training sessions and establish a safety plan. Motivate your employees to strive for a safe work environment by tracking your safety record and celebrating accident-free milestones.
5. Take care of your property
Worcester weather can wreak havoc on your property. Make sure to do seasonal inspections of your roof, landscaping, parking areas, pathways, and other areas. Proper maintenance will reduce your risk of damage and over time can help lower your insurance premiums.
6. Pay attention to your insurance audit
When it comes times for the annual workers compensation audit, many business owners are unaware of how significantly their premiums can be affected. Make sure all your employees and your business are classified correctly so you get the appropriate coverage.
Small business insurance is necessary to protect your business in Worcester, and some coverages are required by law. To ensure you’re paying the lowest premiums while still maintaining proper coverage, set up a review with your insurance agent at least once each year. Keeping your policies up-to-date will keep your premiums low and make sure you are not at risk for any dangerous coverage gaps that may have arisen since your last review.