We all want to limit expenses, right? This applies to business too, as many businesses needs to keep expenditures to a minimum if they are going to be successful. In the current economic climate, such a tactic is even more necessary than ever before. While there are a number of things that a business can cope without; each decision which affects the outgoings of a company will require clear and consistent decisions to be made.
Protection for businesses is vital and insurance cover is not something many entrepreneurs should forsake. Protection insurance can be expensive and what a company pays out in insurance premiums can be affected by many things. The industry that you operate in, the size of your company, your clients and the working environment will all play an important part in what you pay in terms of premiums.
Few businesses would disagree that comprehensive cover is always necessary, but by making a few simple changes within your business it is possible to reduce the cost of such cover dramatically. Below we highlight a few key areas that you may want to look at.
The importance of building a relationship
The relationship that a business has with its insurance provider is as important as its relationship with any other client. If your business is serious about reducing the risk of a claim becoming necessary; it is in your interests to let your insurers know about it. It is essential for businesses to show their insurance providers what they are doing to minimise risk effectively. Building up a healthy profile is the most effective way for a business to prove themselves to be worthy of low premiums. Late payments and questionable claims are sure to be cause concern among any insurer and will more than likely lead to a hike in premiums.
Knowing what is required of you as a business
It often seems like there are thousands of different health and safety regulations associated with many industries. While they may seem as an unnecessary obstacle to establishing efficiency in the workplace, the importance of these regulations is not to be underestimated when it comes to insuring a business.
Stepping outside of the provided guidelines is a classic way for a company to become liable for damages. The other side of that coin means that when businesses work strictly within frameworks, they will consistently see far smaller penalties should they find themselves facing a claim.
Ensuring that your employees know what is required of them
While it may seem a chore, it is an undeniable truth that a well trained workforce is less likely to come into difficulties that could lead to costly insurance claims. If you make sure that your employees are well aware of the dangers of their work, they are less likely to make costly errors and your insurance provider knows this. Providing regular and updated training exercises for your workforce, as well as following all of the necessary safety regulations is one way of ensuring that your business insurance quotes are manageable.
The knowledge of your immediate workforce is the best place for business owners to begin, but the task goes a little further. Good insurance providers will take a close look at any contractors or freelance workers employed by your company in recent years. If you have a record of working with contractors who do not have as tight a grip on reducing risk in the workplace as your business, this could well adversely affect your premium.
The businesses with whom you work and do business with can play a sizeable role in the risk of your own business when it comes to insurance. Policies such as Professional Indemnity Insurance from Hiscox are designed to cover businesses against cases brought against them by clients, but the level of responsibility shown by your own business in choosing clients can have a considerable effect on the cost of such policies in the first place.
Make responsible use of insurance policies
Insurance is a vital lifeline for all businesses. If your business is committed to lowering the premiums it pays, it must approach claims responsibly. Premiums are greatly affected by the insurance history of a business. What may seem like a necessary claim in the short term may well be harmful for a business in the long run. Insurance providers want to insure a company who do not make claims; if your business is looking for lower premiums, a record of spurious insurance claims is not going to work in your favor.