How To Reduce Your Business Insurance Costs

How To Reduce Your Business Insurance Costs

Posted: 30th April 2019

Posted by: The National Testing Team

Reduce Your Business Insurance Costs

There are many expenses that a company incurs and although necessary, insurance premiums are a significant cost for most businesses. Unfortunately, there’s no way of getting round them so instead, it’s best to look at how you can keep your premiums as low as possible. Here are some tips to get you started.

Update Your Insurance File

Once you’ve secured your insurance policy, it’s easy enough to hide it away and never want to think about it again. However, just like any other bills such as gas and electricity, it’s important to review your insurance file yearly and shop around for better deals or discounts - Sometimes trade associations within the same industry sector can assist in finding reductions in cost for insurance.

Review your policy to ensure your insurance premium covers everything you need it too. Although we want to obtain the lowest price possible, you also want to ensure that you’re insurance protects you against all possibilities and is the best cover for you and your employees. If you do need to use your insurance, the last thing you need is it to be rejected because you’re not properly covered and having to then pay out of your own pocket. Be sure to keep copies of your all your insurance policies and claim forms in your file so you have easy access when they are needed.

Review Your Equipment and Employees

Whilst you're reviewing your insurance policies, it’s worth looking at what you currently have cover for. Over a year, there’s potential for lots of changes within a company and you want to make sure these are reflected in your premiums. This includes both machinery, equipment, and your employees.

Examine whether you still own and run all the equipment you have listed in your policies. Be sure to also add any new machinery you have acquired. This also includes any vehicles used within the company. Physical damage from an accident is valued based on the cash value of the vehicle itself. Vehicles decline in cash value as they age which is why it is paramount that the information you have entered for them is correct.

Similarly, turnover in employees is expected within any business. You may still have policies open for specific workers that are no longer employed at the company but are still costing you money. You may have had a worker that had been involved in many accidents and so skyrocketed your premiums, but no longer works there. If there are many varying roles within your company, it is also important to check that each worker is classified under the correct role. For example, rates for a worker that operate heavy machinery, would be very different to someone that works in administration. Imagine if all your workers were classified under production workers and the unnecessary high costs you could be paying for that error. You could also be forking out money for risks that are no longer present within the company, so it’s extremely beneficial to review your documents at least once a year.

Train Your Workers

In order to ensure workers are performing their jobs properly, they need the appropriate training. Well trained staff help reduce the risks of work related accidents, which is turn reduces the likelihood of lawsuits or claims. This helps safeguard your staff from injuries and assist in keeping your premiums lower. In some cases, insurance companies may offer discounts if you provide certain types of training, as a reward. It’s worth asking your provider if there are any types of training that would reduce the insurance costs.

Risk Assessments

Insurance providers will always examine a businesses risk assessments and security precautions. Having a robust plan in place will show the insurance company your determination in keeping your working environment and employees safe, which could help reduce your insurance costs.

A safety plan will identify and eliminate or minimise hazards that are more likely to lead to an accident or injury. An effective safety plan is reviewed regularly and enforced consistently. Many insurers offer risk control services to their policyholders, or can advise on what measures they would expect to be in place so it’s worth liaising with them first. Fire evacuation systems, security systems, safety and training programmes can also help reduce insurance costs if they are in place.

Cybercrime is on the rise more than ever, so if your company handles sensitive customer data on computer systems, you should maintain robust security protocols to ensure these are never exposed. Your insurance company may be able to assist in employing a security programme that works best for you and tackles any areas of need within your database.

Slip Testing

Regardless of industry, slips are nearly always the largest cause of insurance claims, and so as you expect, if you don't ensure you maintain safe flooring, your insurance premiums are likely to dramatically increase.

Regular slip testing is a necessary procedure to ensure your flooring is at a respected level of slip resistance. This will help significantly reduce the likelihood of such accidents occurring, and if an accident were to occur, you will have evidence of adequate measures you have put in place to reduce these risks if a case was to go to court. Your flooring should be tested at least once a year so you can always be confident it is safe.

This is likely to be the most efficient action to put in place to reduce insurance premium costs due to the high predictability of these types of accidents occurring, and the costs you can incur from these claims.

Be proactive in ensuring your company has all necessary measures in place to keep those insurance premiums as low as possible. As you can see above, a small intervention can save you a lot of money in the long run!

If you think that your flooring needs to be risk assessed and professionally tested in order to ensure it meets slip resistance regulations, contact the team at National Testing on 01948 822099 to book your test with us today.

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