Finance

6 Things You Can do to Reduce Your Business Insurance Premium

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Business insurance is an unavoidable expense, particularly for small business owners. Without it, your business is vulnerable, and you could be put in a position where you are unable to continue trading because of an unforeseen accident or lawsuit. That being said, it is within your power to get your insurance premium as low as possible.

Classify your workers correctly

Employees may move around and switch roles often, and this can be difficult to keep track of. However, ensuring that you keep track of these moves and regularly keep your insurance provider updated can save you a significant amount of money. Part of the cost of your insurance premium will be based on workers’ compensation class codes, the code that insurance companies assign to workers performing different types of jobs. Each code will come with a different price tag. For example, contractors are banded as much more expensive than clerical staff because of the amount of risk involved in their work.

Fire protection 

As well as lowering your insurance premium, adequately protecting your business premises against the risk of fire means that you are at a significantly lower risk of losing precious company data and equipment should a fire break out. Different building types require different types of fire precautions, so it’s worth bringing in a specialist to design your commercial fire sprinkler systems and provide the best value and protection for your business.

Adopt health-specific changes in your workplace

If your workforce is healthy, not only will your insurance premiums be lower, but your employees will perform better. Try offering a lunchtime exercise class or have regular exercise-based team-building exercises. If your employees are fitter, not only are they much less likely to get sick, but their mental health is expected to improve as well. People who are physically fit tend to be more confident and have more energy, plus by supporting their physical health, your employees will know that you care for them, which will inspire loyalty.

Train your workers

Particularly for workers performing a physical job, structured official training is essential. It not only ensures the safety of your workers and prevents accidents and the associated legal costs, but it may also be taken into account by some insurance providers when calculating your premium. Contact your insurance provider to see if they offer discounts based on your provision of specific types of training.

Trade organizations

It’s worth considering membership in a trade association. Some trade organizations can offer discounted insurance premiums to its members. Even if this isn’t the case, through the contacts that you make by joining, you will be able to get great advice on how other people in your industry have managed to reduce their premiums.

Have a safety plan

A well-executed safety plan that is reviewed and updated often can not only prevent accidents and injury in the workplace, but it can lower your premiums too. Most insurance providers will be able to help you to design an effective plan for your business.

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