June 7, 2022

How to reduce Business Insurance premiums

How to reduce Business Insurance premiums

Business Insurance can offer plenty of benefits to commercial enterprises– it helps them manage common risks, get tax rebates, maintain statutory compliance and ensure business continuity. Insurance provides businesses a comprehensive tool to protect all integral assets and liabilities.

But, many small businesses that stand to gain the most from purchasing a Commercial Insurance policy often abstain from doing so on account of price considerations. Understandably, getting the most low-cost and high-coverage deal is one of their top priorities.

But there are some things that businesses can do to automatically get their desired reductions on insurance premiums. Certain measures like adequate security, proper storage of stock, robust building structure can guarantee you a much lower premium on your Business Insurance policy. Let’s discuss these below.

Measures like sufficient security implements (such as locks, CCTV cameras, anti-theft alarms), regular training programs, updated fire/flood prevention systems, etc. can greatly reduce the likelihood of your business suffering a major loss and making a claim. This in turn lowers your business’s risk factor for the insurance company and results in a more reasonable premium rate.

Package policies are an excellent way for businesses to get ample coverage at a discounted price. Package policies combine two or more individual insurance policies to offer one bundle of comprehensive covers that can protect your business against every foreseeable risk. These policies can be customised and are a much cheaper option than purchasing several individual policies at the same time. Shopkeeper’s Insurance, Office Package Policy, and Fire All Risk Insurance, are excellent examples of policies with bundled covers.

Some trade organisations offer Business Insurance coverage to their members at discounted prices. This is accomplished through the organisation’s affiliations with insurance companies or brokers. Joining a trade organisation depends heavily on the area where your business is located and membership criteria can also differ from industry to industry.

Perhaps the most effective way to reduce the frequency and severity of workplace accidents is to conduct routine training sessions with your workers to ensure the appropriate safety standards are understood and being met. Employees will then be less likely to sustain occupational injuries or cause accidents that injure someone else. This will in turn reduce the likelihood of claims and may result in reduced premiums.

A deductible or excess is a mechanism built in most all insurance policies. A deductible is a part of the claim that the insured business becomes liable for. Increasing the voluntary deductible can lower your insurance premiums. But, keep in mind that this also increases your liability to bear losses which could leave you underinsured if a massive damage were to occur.

Modifying deductibles may not always be possible, as some policies, like Fire Insurance, do not allow such flexibility.

Evaluating your insurance covers from time to time can allow you to identify unnecessary or overlapping coverages. If your business is highly unlikely to suffer a particular loss, it may be ideal to remove that insurance cover and thereby reduce your premiums. However, it is essential to only get rid of covers that are completely unnecessary or are already insured under some other policy so as to avoid being underinsured.

Lastly, do not hesitate to compare premiums offered by multiple insurance companies. This will allow you to pocket a great deal and ensure you get the right coverage for your business’s needs. Most insurance broking platforms offer extensive discounts and allow you to compare and select policies in a few easy steps!

Business Insurance is too indispensable a tool to put off. And with Verak’s tech-driven platform, getting your business insured has been made easier than ever. Get Business Property Insurance starting at just ₹473!

Learn more: Types of Business Insurance policies

Opinions, conclusions and statements of intent expressed in this article are that of the author and Verak does not accept liability for the views expressed unless confirmed by an authorized representative of the Company independently of this communication.