Business insurance is a necessary purchase for every company and lowering premiums is a continual process. A thorough assessment should be conducted once per year or every time there is a significant change in the business that warrants a review.
This article focuses on the simple steps that need to be followed to keep you informed and allow Milestone Insurance to negotiate the best deal.
Organization of your insurance files is the first step in reducing your premiums. Make sure you keep copies of the documents that are readily accessible when needed, both on and off site.
You will also need to review your equipment, employees and any other assets to make sure you are not insuring part of the business that no longer exists. For example, you may no longer own the vehicles listed, key equipment may have changed, staff may no longer work for you or there might be parts of the business that no longer operate. Many employers fail to notify their insurers when common changes like these occur so they can adjust their policies accordingly.
2) Health & Safety
Every employer has a legal responsibility to ensure the wellbeing of all employees and this should be a priority for every business. This duty of care should include the elimination of hazards that could result in claims, the provision of the appropriate personal protective and safety equipment, train staff on proper lifting techniques and the allowance of rest breaks during the day.
Furthermore, most insurers offer discounts for a properly trained workforce. For example, fleet managers could incorporate road safety courses into employee training. Make sure you keep a record of what training you have provided and notify Milestone to ensure you get the best deal.
Businesses should also encourage a healthy work culture by adopting no-smoking policies, consider supplementing gym memberships, encouraging regular GP visits, providing healthy cafeteria food if possible. Ultimately, the better your health and safety regulations are, the less frequent work-place incidents and illness will occur and the smaller your premiums are likely to be.
3) Classify your workforce
Quite often the wrong classification of employees can drive your insurance costs up because your premiums are based on the type of workers used.
For example, ensuring you classify sales people as ‘sales people’ and painters as ‘painters’ will save you money as many insurers can wrongly allocate these as ‘line workers’ and ‘construction workers’ who are more expensive to insure. Classify each worker properly and make sure your insurer does the same.
4) Ask for better rates
Too many businesses allow insurance to fall into the routine of payments and that are made. They fail to ask their insurers for a better rate or even shop around once a year, just choosing the right broker can save you money. Milestone Insurance actively seek new information about our customers every year, to ensure they get the best rates possible.
5) Combine your policies
Certain insurers offer the opportunity for businesses to combine certain insurance covers. For example, fleet managers can save your company money by merging their public liability, employee liability and fleet insurance into one policy.
This, economies of scale approach is not available everywhere, but if you demonstrate to your insurer that you present the lowest possible risk, they are more likely to want to retain your business.
6) Reap the benefits of trade organizations or professional associations
Make a point of checking whether belonging to a trade organization or professional association can reduce your premiums.