You may be wondering how you can reduce your business insurance costs. A major concern might be the premium you will have to pay. Insurance companies use many factors when calculating your premium, including claims history and the risk associated with your business. Let's look at a few ways business insurance premiums are affected by business practices.
Workplace Safety is a Major Issue to Insurance Companies
Many insurance companies will require you to furnish a written safety program when you apply for insurance. If you are found to be in non-compliance with safety training, you will either be declined for coverage or charged a higher premium. By ignoring workplace safety, injuries will occur; and with injuries come claims.
Maintain Proper Records, You'll Get the Best Premium
As a business owner, you probably already realize that it doesn't count unless it’s written down. In order to get the best rating on your business policy, you must show your history of employee training, proper equipment maintenance and adherence to safety guidelines. Without written proof, your business will be given a "default" rating for your industry, which will result in a higher premium.
Ongoing Employee Training is Important in Business Insurance
Ongoing training for your employees goes hand-in-hand with maintaining proper records. Training not only produces a better employee, but it also tells insurance companies that you are making every effort to keep employees current about customer relations, safety issues and other company procedures. Improperly trained employees can result in increased insurance claims and higher premiums.
You Must Follow Current Employment Laws
Your failure to comply with all federal employment laws will ultimately lead to an increase in claims and a higher insurance premium. Never claim an employee as a "contractor" just to keep from buying workers comp insurance. Many employers hire illegal workers simply to reduce the payroll. If your business ever acts in a discriminatory fashion or ignores any laws, it will catch up with you.
Business insurance has become a necessary part of doing business. You have some control over your premiums. If you will take steps to show that your business is a safe place to work and you care enough to keep employees properly trained, your insurance company will get the message.
Get the coverage you need. Contact your local business insurance agent to get started on your business policy today. Call us!
(530) 534-4600 or ASK FOR A QUOTE