Finance

Is Your Company Prepared To Cover All Insurance Claims Shoved Its Way

100Views

Is your business protected from the costly legal fees and legal claims? And, do you have insurance coverage for some of the most expensive claims such as liability claims and property damage? Because your small business will, at one point in the future suffer a huge blow that can dry out your coffers in one sweep. You may have to liquidate your company and file for bankruptcy, something we all know isn’t accounted for in the cards when you start a business. Everyone wishes to run a lucrative enterprise but, can you shelf the risks that your company could face?

With water and freezing damage, fire, wind, and hail, as well as customer falls and slips accounting the most common claims, how prepared is your company? On the other hand, research shows that the costliest insurance claims include vehicle accident claims, customer injury, product liability, and fire damage claims. So, how can you get out on the other side unscathed? And how do you get the best value out of your money while paying your insurance premiums?

  1. Reduce the risks

Did you know that insurance companies are happy taking on responsible clients rather than the reckless or the ones involved in risky operations? And if an insurance company chooses to cover a risky business, then you have to pay high premiums?

If you run a risky business and if you don’t consider yourself very responsible, then you should embrace safety training programs or even take a risk performance review to reduce the possibility of you ever having to pay for claims. The programs will also prevent unpredictable hikes in insurance premium rates.

Remember that any preventable loss is an avoidable loss and prevention better than cure. So, if you can prevent slips, fire, burglary or theft, take action.

  1. Improve your security measures

Security systems, workers’ safety programs, fire sprinkler systems, as well as driver training programs, will help in cutting down the cost of insurance. So, if your company deals with private and highly sensitive customer data, you have to maintain robust protocols for security so that your exposure to cybercrime reduces.

With the help of an insurance agent or a brokerage firm, you can evaluate your insurance risks and then institute programs that work for the business.

  1. Create proper categories for your employees

Even with the best personal injury lawyers Hamilton, you should work on reducing the cost of insurance. This is a smart move that needs to be implemented for workers injury claims. If your employees aren’t categorized well, you will end up with expensive premiums and even then, your insurance may not be at a position to pay off the full value of the claim and you’re forced to dig deeper into your accounts for money to settle the claim.

A personal injury lawyer may also advise you on how to reduce the liability. While working on those strategies, don’t downplay dangers and don’t lie to your insurance broker. Let your insurance broker know when an employer enters or leaves your employment.

  1. Annual policy evaluation

While it’s easy and tempting to tick the automatic renewal option, you have a lot to do anyway; it’s not the smartest move. However busy you are, take some time to reevaluate the policy while questioning changes to your business. You’ll have to make adjustments to your business model as well as the rates. While at it, make sure that you are protecting your business to the fullest.

  1. Prepay your premiums

To reduce the final insurance costs, you should pay your insurance upfront. This is because you pay a service fee when on a payment plan. To make this work, save up for next years’ premium payments in the current year. This strategy is helpful when you are unable to make the payment wholly at the moment. Though tough, it’s good business practice. Since your business could suffer low cash flows, prepayment of premiums will protect your business.

Look for discounts too. Most of us fear to ask for discounts when the option is available. For this, you need to shop around for insurance carriers that offer great packages at discounted rates.

  1. Modification of deductibles

By increasing your deductibles, you lower your premiums. However, you should evaluate your needs first before you determine how much of your income goes to deductibles.

Lastly, buy adequate coverage.  You must have general liability insurance, product, professional, and commercial liability insurance.

Leave a Reply