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How to Stabilize or Reduce Your Insurance Costs

how to stabilize or reduce your insurance costs

Insurance costs are high. There’s no denying it. If your broker didn’t reach out to forewarn you, you likely had a shock when you opened your most recent insurance bill.

Is there anything a business owner can do to reduce those high coverage costs?

Yes, let’s review some of the options.

As a commercial business, the looming year of higher premiums and the unknown can be daunting. However, there are ways to reduce your insurance costs and take proactive steps.

Pay Attention to your Risk Profile 

Your risk profile can be a collection of factors including: 

  • Who you hire
  • How many steps are in place to protect your data
  • Whether or not your employee lists are accurate for insurance
  • Your overall security precautions

These are all small factors that influence your risk profile. Keeping an eye on them can, in turn, avoid long-term costs.

HR Handbooks 

Avoiding a flood of claims helps your reputation and bottom line. Investing in Employment Practices Liability Insurance (EPLI) is crucial to protecting your business, however, it can be costly.

An HR handbook can be an active document that provides guidance for employers and employees as a way for your company to stay protected outside of EPLI insurance.

Your handbook can cover topics such as: 

  • Password Policy
  • VPNs
  • Safety Policies and Procedures
  • Intellectual Property

Evaluate Policies Annually

Policies are bound to change in the next year, so keeping a close eye on ones that pertain to commercial insurance will prevent future risk (and future costs).

As your business evolves throughout the months and years, it is important to check in with your Risk Management consultant. In addition, the landscape of legislation is ever-changing in California.

For example, Proposition 22 in California has been ruled unconstitutional, so there may be some changes in the hiring process for W-2 employees vs. 1099 workers.

Do you know why your insurance prices have increased this year? Check out our recent blog post explaining what exactly is going on.