Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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lower business insurance premiums

When doing business, there are so many economic factors to consider that having to pay out generous amounts for business insurance premiums is an added burden. However, you may be paying more for your business insurance than you need to. Take a close look at your insurance policies.

Find the best rates on business insurance by comparing quotes from all the top insurance companies in the nation. Enter your zip code to compare now!

The following 15 tips will help you lower the insurance premiums for your business.

1. Set a Schedule for Reviewing Business Insurance Premiums.

At least once a year, go over all insurance records looking at what and who is being protected. The review will give you an overall understanding of the insurance situation and reveal places that could be cut. Undertake a review whenever there are significant business changes or a reorganization.

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2. Create a File for All of the Insurance Papers and Related Information.

Keep that insurance file where it is readily accessible. An organized file is much simpler to pull out and go over during a review process.

3. Keep Copies of All Insurance Policies.

Make sure all policies are kept up-to-date. The business insurance file should include claim form copies on each policy held by the business.

4. Protect All Insurance Policies, Forms and Information at an Off-site Location.

Computer systems go down and can take with them any file stored on the system. If something happens to your system or the buildings, you ‘ll still be able to access the insurance policies.

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5. List the Property the Business Owns.

Don’t assume. Check each item listed on the insurance papers with property actually on site, in warehouses or at other locations. You may find a discrepancy between actual property and what was listed, for insurance purposes, several years earlier. Delete from insurance coverage those items no longer owned by the business. This may include anything from furnishings to vehicles.

6. Check Out All Those Named in the Business Insurance Policies.

Since the last check, positions might have been shuffled and employees might have left the company. Check all those listed on the insurance policies to ensure that all those covered by insurance actually still work for the company. Going over the list of insured employees and deleting those that no longer work for the company can provide savings to insurance premiums.

7. Check Insurance Policies to See if the Business has Duplicated Coverage in Some Areas.

insurance policies

Overlapping coverage costs the business money in higher insurance premiums. This coverage may happen with changes and reorganization that adds coverage without taking a look at what is already covered. Double check insurance coverage, looking for insurance that covers areas of the business more than once.

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8. Review Coverage for Areas that No Longer Exist.

That equipment that has been sold no longer needs to be covered. Operations that are out sourced may no longer need insurance coverage.

9. Make Safety a Priority.

Review safety policies on a regular basis and check to make sure that safety polices are implemented all the way down the line to the stock person and janitors. Create safety rules for all employees to follow. Update or change equipment to create a safer environment for workers and clients. Keep track of accidents, especially those that include an injury. Encourage safety throughout the business. Monitor safety before and after changes. An improved safety record saves on insurance premiums. As part of safety, and to help lower insurance premiums, provide adequate training for all employees.

10. Encourage Employees to Maintain a Healthy Lifestyle.

The health, or lack thereof of your employees, can greatly increase the cost of doing business and in insurance premiums if the insurance company is continually paying out large sums of money for health problems and lost work. Start by being an example of healthy living. Reward employees who stop smoking, lose weight or regularly exercise. Outfit a room employees can use to exercise and meditate. Bring in speakers to offer practical ways to get and stay healthy.

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11. Check to Make Sure that All employees are Accurately Classified by Both the Liability Insurance and the Worker’s Compensation Insurance.

The kind of employees in the business determines the amount of insurance premiums you will pay. Correct classification is important. Don’t classify line workers as sales employees or the other way around. Making sure both you and your insurer correctly classify all of your employees can lead to substantial insurance premium savings.

12. No Matter How Many years You’ve Been in Business, Remember that You do not Know All There is to Know About Business Insurance.

Schedule time, on a regular basis of at least once a year, to sit down with those who hold insurance policies on your business and discuss the insurance needs of the company. If you’ve held the same policy for many years, it is more than time to go over it in detail. Discuss ways the insurance premiums can be reduced and steps you could take to lower insurance premiums.

13. Before Signing on with a New Policy, Make Sure You Understand the Fine Print.

Ask that the policy be explained in understandable language. Make sure that promises made by the insurance representative are actually written into the policy. Also, make sure, by having a lawyer or knowledgeable outside party check the policy, that a new policy will actually save on premiums rather than substantially increasing them and that the policy fits the needs of the business.

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14. Look for Discounts with Insurance Companies Affiliated with Professional or Trade Organizations.

Businesses belong to any number of associations that benefit the company through connections and networking. The membership is good for your business, but there may be other benefits as well. Check the organizations to which your company belongs. Some of the organizations might have insurance companies as members. Your membership in the organization may mean considerable discounts in insurance premiums if you use an insurance company affiliated with an organization to which you belong.

15. Go Green.

The financial costs of making changes to creating a more environmentally friendly workplace are repaid in insurance premium savings as well as in a healthier environment for the company workforce.

With Diligence and Planning, You Can Save on Business Insurance Premiums

By going over your files, talking to your agent about discounts and making sure you are covering only those items actually owned by your company, you can save on your business insurance premiums. Keeping records up-to-date and scheduling regular times to go over the insurance rewards you in lower insurance premium costs.

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