Take It to the Bank: Lower Your Business’ Insurance Premium
Does it often seem like you are continually paying for insurance coverage your employees never use? Obviously insurance is important and is something that should be purchased. The key, however, is to pick the right plan so that your business gets the right coverage without overpaying.
If you own or manage a business, choosing the right policy is even more important. You want your employees to be covered, but any coverage slight or overpayment is magnified by every single employee. This blog post will help you lower your premiums on your business’s insurance so that your payments are always manageable and appropriate.
Bundle insurance products – The more you can package and bundle the different types of insurance you need, the lower your premiums will be (than if you paid for each individually). Plus, you will only have one payment to make instead of multiple payments. Think of insurance in terms of groceries: when you buy in bulk you save on the cost per unit.
Choose a plan with a higher deductible – Business insurance plans, like other types of insurance, have lower premiums if the deductible is higher. Conversely, plans with lower deductibles will cost you more.
Eliminate repetitive coverage – Make sure that you are not paying for multiples of the same type of coverage. Especially if your business works through multiple insurance providers, you may be paying for repetitive or unwanted insurance.
Buy direct – The fewer people or companies that handle your policy, the fewer times the premium will be marked up. Some brokers do have special connections and get exclusive rates—there is nothing wrong with comparing rates to save some money.
Implement risk management strategies – The less likely you are to actually need your insurance, the cheaper it will be. Train your employees on both safety protocols and insurance protocols. Many insurance companies and policies also offer discounts to businesses that have risk management strategies.
Keep your list of employees current – The easiest way to lose money is to pay the insurance for someone who does not work for you anymore. When you set up insurance benefits, make sure that the amount you pay is terminated whenever an employee is no longer part of your payroll. Keeping your employee list up to date also allows you to better track how much money you are paying out in premiums and benefits.