While we would never recommend reducing coverage which is necessary to protect your business, we do have some pointers on how to keep such costs down.
Whether you own a taxi company, bed & breakfast, or a daycare center, you are likely to be experiencing a financial squeeze in this economy. You will want to sit down with your licensed insurance professional and ask for recommendations to help you to reduce your premium expense without increasing your risk.
You will likely want to search for duplicate coverage, and then eliminate one or the other from your policies. Such duplications are frequently found in liability coverages that your business already has in place. Your professional liability policy may overlap some protection with your general liability coverage.
With the help of your licensed insurance professional, you will be able to determine if one or another can be excluded, thereby helping you to reduce your premiums.
A realistic scrutinization of the coverage limits you have on your liability should help you figure out if some of them are higher than you need. If that is the case, a look at raising your deductibles might be in order. If your business has grown, you might be able to afford more out-of-pocket costs before you have the insurance cover any losses.
Frequently overlooked are possible reductions to workers comp premiums. Many, if not most, workers compensation carriers reward safety and planning by implementing a reduction in the cost of such insurance. Ask your licensed professional if your carrier would consider reductions in premiums by implementing various risk management and safety programs.
If so, you should look to developing a safety program with the carrier. Better educated and safety conscious employees are a plus for them and for your business.
Ask specifically for the company’s recommendations after a walk-through by the carrier’s representative. You may also want to consider offering fire safety and hazmat training to your employees to further reduce your premiums.
Consult your licensed insurance professional for guidance and advice about such of programs and work with that professional in order to locate a carrier which will offer discounts for using these programs.