How to Save in 2019 when Small Business Owners Shop Insurance

In 2019 There Are Several Ways to Save When You Shop Insurance

As most small business owners know, every dime matters when you own and operate a small business. Before making any major changes or making and major purchases, it is important to speak with every advisor possible to determine how these decision will impact your insurance premium. Savvy business owners weigh their options and move forward with the largest amount of information possible. This decision making process should be no different when it comes to purchasing shop insurance.  Here are five tried and true tips to help you save on commercial insurance and five tips you should try in 2019.

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5 Tried and True Tips to Shop Insurance

Partner with an Independent Agent

It is always best to partner with an independent agent when it is time to Shop Insurance. The services done by an independent agent can be done by yourself or someone at your business, but depending upon the experience of yourself or your key employees, you are not going to be able to do it as efficiently as an independent agent can. This is especially true when it comes to the amount of time a business would have to spend acquiring quotes from multiple carriers and the knowledge an insider like an independent agent has within the insurance industry. An independent agent knows which carriers are hungry to quote a particular industry, which carriers are looking to quote a certain policy, and which carriers have better servicing when a claim occurs. This allows your key employees to spend more time running the business and allows the independent agent to shop insurance so you don’t have to.

Shop Around Your Policy

Once you have chosen an independent agent with whom you trust, it is important to have them shop your policy around to as many carriers as possible. This creates competition for your coverage and gives you options. It is not a good idea to switch carriers each year and it is not wise to make your decision on a carrier based solely on price. The margins insurance carriers make on policies are tight. If one carrier offers a price dramatically lower than all others there is more than likely a reason for it. An independent agent can help you determine which offer is the best, but it is important to first shop your policy around.

Understand your Experience Mod

The Experience Modification Rating of a business is the one factor businesses have control over that can impact what the pay for commercial insurance. Especially what the business pays for workers compensation insurance coverage. Underwriters at Insurance Carriers use the experience modification rating to determine if they are gong to offer a business coverage and what they are going to charge each business for premium. Keeping this rating low is important.

Safety Programs

Implementing an effective Safety Program is the primary way a business can keep their experience modification rating low. When effective a safety program can keep the number of insurance claims low and it can limit the severity of insurance claims when they do occur. A safety program does not have to be extremely time consuming. It can be as little as an hour meeting once a month or even a 15 minute huddle a few times a week.  No matter what type of program a business deems is best for their business, a safety program is the best way to lower the experience modification rating.

Return to Work Program

A Return to Work Program should be a part of any safety program. A return to work program helps inured employees get back to work faster and make them more likely to eventually return to full-time permanent work. Humans are creatures of habit and the longer an injured employee stays off the job, the longer they have to develop habits not associated with work. A return to work program can help your business retain these employees and limit the damage to your businesses experience modification rating.

5 Insurance Tips to Use in 2019

Consider Updating Equipment

If your business has certain types of equipment you depend upon; it may be wise to talk with your independent agent about all of the equipment your business owns and operates. Your independent agent should be able to help you determine which types of equipment are causing your premium to rise or fall. They may be able to help you determine when it is time to either limit the amount of equipment you own, upgrade the equipment you have or to sell outdated equipment.

Consider a Different Kind of Bundle

Bundling policies is always a good way to get additional discounts on insurance premium. If you are a small business owner; consider not only bundling all of your business and personal policies with one carrier, but try to leverage the policies of your employees as well. If you have a staff that needs health insurance coverage, it might be worth your while to get all of their policies added to your bundle.  When you ad in dental, vision, life, and supplemental income coverage; this can amount to a lot of premium. This is the type of situation an insurance agent loves. If an agent has the opportunity to sell multiple policies while dealing with only one person, they are much more likely to dig deep for all of the credits, debits, and discounts they have available.

Change your payment method

The payment method preferred will vary from carrier to carrier.  You may be able to reap substantial savings by paying your premium in full, paying quarterly, or by making a larger payment up front. Some carriers will give you a small discount for setting up payments through an electronic funds transfer. It is important to communicate to your agent, that you want them asking for any and all discounts offered. Insurance agents interact with customers from all walks of life. Not all of these customers value price as much as other customers. If you are a customer who does want to use every option possible to maximize savings, than communicate this preference to your agent.

Explore Every Type of Discount

There are a number of types of discounts insurance carriers offer.  Here is a list of discounts a business might be able to benefit from:

  • Claims Free
  • Safety Discounts
  • Bundling Discounts
  • Group Discounts
  • Loyalty Discounts
  • Paperless

Each insurance carrier is different. Some will allow you to ad on multiple discounts. Some will only allow you to take advantage of one or a select few. If you’re not sure about what discounts an insurance carrier provides, ask to speak with a representative who can explain the different policy combinations and available deals. Your independent agent should be able to find any and all discounts to meet your needs, but it is important to express to them this is a priority for you as a business owner.

Make your Workplace Ergonomically Friendly  

Ergonomically friendly working places are a long-term investment, but if executed properly they can help your business save immensely. Having an ergonomically friendly work station for each of your employees is a difficult situation. Each employee has their own unique needs. Some may be very tall while others may be very short. Some may be large while others may have a physical disability. Working with these employees to take care of their needs on the front end can eliminate a lot of costly insurance claims down the road by preventing repetitive use injuries. This will contribute to your staff being more productive and will lower what you pay for insurance because you will be filing less insurance claims.

6 Ways to Keep Your Small Business Safe

Safety can mean a lot of things to a lot of people. In the business world, the perception of safety can mean a lot of things to a lot of different business owners. What it takes to properly protect your business should be something that is taken very serious by all of the decision makers within your business. Safety can mean securing the property at night when you are away from the building or it can mean properly training your employees to use the equipment they will be using as part of their job. It can even be having the proper policies in place to prevent your business from a data breach. There is a laundry list of things that can be included in your businesses strategy to properly keep your business safe. Here are 6 strategies to keep in mind when protecting your small business.

Hire the right people

It may seem obvious, but the people you hire are your most precious asset. Making sure they are the right people can go a long way towards the safety of your business. There are many ways you can go about checking up on your applicants. Criminal background checks, motor vehicle driving records, investigating their references and checking their college transcripts are all great places to start. Sometimes you will have to rely on your gut reaction to them from an interview, but taking extra time to make sure the people you hire are the right people will start your business off on the right foot when attempting to keep your business safe.

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Train people effectively in the first place

Once you have hired the correct people for your organization it is not enough to just set them loose. You must properly train them in the art of protecting your business the way that is best for your organization within your industry. and think everything in your business will remain secure. They need to know what is important to your organization and how you expect them to conduct business. This may seem obvious, but far too many business owners forget this part of their organization. An employee in HR or Marketing might be coming to you from another industry. They may not see the potential risk that exists for your business in your industry. Take the financial services industry for example. This industry deals with every bit of a customers’ sensitive information, most importantly their financial accounts. If they are coming from another industry where the business does not have access to these types of materials’ they may not fully understand the need to safeguard everything they do. Another industry, like commercial cleaning, has risks where they are allowing employees in to a business after hours when they are the only people in the facility. This opens up the possibility for theft or access to internal computer networks. Training new employees properly will prevent risks from getting out of hand later.

Have well-documented, well thought out Safety Programs

Safety programs entail a lot depending on your business. Don’t be afraid to make them more or less extensive based on the needs of your business. It should start during the initial training/onboarding process for all employees. If you make it clear to them from the beginning that safety is important to your business than they will implement this in to their daily work routine. Like many things in life it is always easier to start tight and loosen up than to start loose and try to tighten up later. That works for a safety program as well.

Defensive Driving Class

Defensive Driving Program

Having a Defensive Driving Program in place can make drastic difference in the frequency and severity of accidents that occur among your employees. If you have employees that operate a vehicle as part of their job they need to have their driving record pulled at least once a year. As part of the hiring process, many businesses require employees to pay for the driving record themselves. This can help weed out applicants with the worst driving records. It saves you time and money on the front end from going through the hiring process with someone who will not be getting the job because of their driving record.

Buying the proper insurance.

Having proper insurance is essential to any good business plan. How much and what types of insurance a business needs, is completely dependent upon the business owner. It depends on how much risk they are comfortable taking and what types of risk they actually face. This is something a good independent insurance agent can help you determine. Many business owners face risks they do not realize and that is where having a long honest conversation with your agent can help you get properly insured. In most states and in most industries it is legally required to carry Workers Compensation and General Liability Coverage. But there are several other coverages that may be necessary depending upon the industry you operate in. Most carriers have programs set up for each specific classification code and they are called Business Owners’ Policies. In most cases this is the best way to go about purchasing commercial insurance.

Take cyber security seriously

Cyber security is a real threat to nearly all businesses. Regardless of how technologically advanced your business is there is a threat in the cyber world. Two of the largest data breaches in history were first started by small businesses first being hacked and allowing access to a larger network of customers through a vendor partnership. Many business owners think data breaches occur through highly technological criminals hacking in to a computer. That is the source of many data breaches, but many start with something as simple as someone leaving out a post-it note with their username and password or an employee taking a laptop home for remote work and the laptop getting stolen out of their car. Those are real risks that any business can have and they can cause a huge cost to your business when they do happen.

Get the best answers to Cyber Security questions for small business owners here at my insurance question.com