Posted on: 28 March 2022
About 40% of businesses will file a claim for a property or general liability with their insurer within ten years. For this reason, you can be sure that having business insurance coverage with an insurance agency service will pay off at some point.
Yet, many small businesses in the US are underinsured, while some don't have insurance at all. If you fall in this category, and insurance cost is the main reason you don't have coverage, this guide offers valuable tips to reduce your business insurance premiums.
Improve Your Business Security
From theft to fire hazards and cybercrimes, the risk of something going wrong in your business is high. Oftentimes, insurers evaluate risks to determine the right premiums for you.
Luckily, you can put up several measures to minimize such risks in your business—and there's no better way to do so than improving security. Your insurer will consider you a low-risk client since you're unlikely to make a claim with solid security measures.
Some things you can do to improve your business security include:
Invest in Top-Notch Locks
Install modern locks on all the entry points, including the doors and windows on your premises. Get a technician to install deadbolts on all your doors. If you have old ones, be sure to change them regularly. The strategy reduces the risk of someone breaking into your property to steal or cause damage.
Install Alarm Systems
Many insurance companies are likely to lower your policy prices if you have reliable alarm systems. Get security alarms with door and window sensors, motions sensors, security cameras, and mobile alerts—just to mention a few cutting-edge security features. Alarm systems may have a higher cost upfront but have the potential to save you a lot of money in years to come.
Fire Alarms and Extinguishers
Again, you must show the insurer that you are prepared in case of a fire outbreak. Fire alarms and extinguishers allow you to react to a surprise fire before much damage is done.
Train Your Employees on Safety Measures
Employee injuries make up a considerable percentage of business insurance claims. So you should strive to create a safe work environment through extensive safety training and education for your workers.
Understand the potential risks your workers face depending on your business industry and niche. For instance, if you run a warehouse, common dangers in such an environment are:
- Slips and falls
- Exposure to harmful substances
- Injuries from falling objects
Your training program should focus on these three risks. Educate your workers on the safety precautions and help them understand what protective gear to use at work.
Employee training reduces your liability risks and shows that the worker's injuries were not a result of your negligence. With the tips above, you can enjoy paying lower premiums and minimize your business's financial risks.Share