In today’s economic turmoil, starting up or running a business isn’t exactly the greatest idea. Sales are down, profits are eroding, and credit is becoming tighter. Businesses are now turning to cut costs. What is one aspect they feel they can cut costs on? The answer is Insurance premiums.
Not a very smart idea. Let me explain why. Insurance is the stable on your business’ back. When your insurance meets a hardship, for whatever reason, your insurance provider is there to back you up. Yet when it comes time to cut costs, insurance is something thought as expendable.
A lot of businesses run dozens of insurance policies covering a wide range of aspects. These policies usually expire at different times in the year. One suggestion is to reorder, and make sure all the policies expire on the same day ? preferably at the end of the year.
The new bid will certainly save you money and it sure beats having little or no protection. Chances are you have the same coverage, and now it’s at a lower cost. It’s hard to beat that deal.
Businesses should constantly monitor their insurance coverage to make sure they are neither overexposed nor underexposed. Insurance companies and brokers are in a business to sell. As a business you understand this concept. However, it sometimes works against you. Insurance brokers can take advantage of your company, severely overcharging for your needed coverage.
Businesses have more active insurance policies than practically any type of service. The policies range from basic business policies, to more complicated and specific policies. Talk to your insurance company about creating a specific plan just for you.
Break down all your polices and think hard about each one. Ask your insurance provider if there is anything you could do to break them all into one, specific rate. The specific policy might relate more to your business needs and save costs.
Have you ever heard the expression, “do not fix it if it’s not broken?” The same applies to business insurance. There are ways to save, but the biggest mistake of them all, is to eliminate it all together or settle for a cheap plan.
Graham McKenzie is the content Syndication Manager at insurance123.co.za South Africa’s leading Commercial Insurance information portal.
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