Liability Insurance

How to Reduce Your Business Liability Insurance Premiums

In today’s economic climate it is necessary to keep costs down wherever possible. There are a number of things you can do to keep your liability insurance premiums low, here are a few ideas for you to consider:

Lower risk means lower premiums – follow good practices within your company and try to lower any kind of risk. For example Health and Safety procedures, if your company follows strict procedures to ensure a safe working environment this will not only lower the risk of an insurance  claim being made but also lower your business premiums. Encourage employees to have regular health checkups and take regular holidays to decrease the risk of having to claim; claiming on the insurance will increase your premiums for the year after.

Increase your security and decrease your business insurance premiums – the easiest way to reduce your business liability insurance premiums is to increase the security of  your business. There are two sides to this, the first being the physical assets of your business. Keep your machinery safe by installing alarm systems, hire a security guard to keep an eye on your premises, use stronger locks and anything else you can do to ensure your equipment, machinery, stock and premises cannot be tampered with or damaged. Secondly it is imperative to protect your files and data, customers’ details, invoices and receipts, electronically and hard copies. Password protected online systems can be used to protect your computer files and data. Use data storage companies for your hard copy files as they guarantee security from theft, fire and damage, and you do not need to store them on site.

The right documentation can make a world of difference – ensure your machinery and equipment is safe and up to the official standards to reduce the risk of injury to your employees or customers. Having the correct documentation such as proof of certificates and licenses is a mandatory requirement by many Insurers. Make sure that you notify your insurance agent and company when you take steps that you believe should reduce your insurance premiums on either a general business liability policy or personal umbrella liability insurance so that they can adjust your premium and save you money.