Many businesses simply renew their existing insurance policies each year. This can be a costly mistake.
You may be paying unnecessarily high premiums based on outdated information, miss out on a better deal that has become available, or may be failing to cover your business against new risks that have arrived with growth.
Here are some things to consider before you next update your insurance policy.
Using A Broker
Deciding whether or not to use an insurance broker is an important decision. Brokers are expensive and for a small business with very straightforward insurance needs, this can be an unnecessary expense.
However, the more complex your business is, the more likely you are to benefit from the expertise of a broker. A good broker is aware of which insurance companies excel in specific areas and will be able to customise the best possible package of products to suit your needs.
It is also common for brokers to be influential in persuading an insurer to approve your policy. If you are a member of any professional association it is a good idea to seek out any recommended brokers.
You may benefit from an associated discount, and the broker will likely have a sound understanding of needs specific to your industry.
Recording Your Assets Accurately
Ensuring that the information you provide to your insurance company is completely up-to-date and includes all your relevant information is extremely beneficial. Regularly cross-checking your list of assets with what you have will ensure that you are paying manageable premiums to cover things you no longer own.
Consistently updating the value of assets that are depreciating will also help to bring down your premiums. For example, it is common for businesses to be paying to cover the value of a brand-new car when its value is now significantly reduced.
Good Risk Management
It is well known that a robust risk management plan is the best way to protect your business. Many businesses overlook that a good risk management plan can significantly reduce your insurance premiums.
If you have updated or improved your risk management systems, you should let your insurance provider know, as it may change the risk category in which you are placed.
Additionally, over time a good safety record will significantly reduce your premiums.