Owning and running a business means managing a variety of tasks that take time, commitment, and energy, so you may not have taken the time to evaluate the amount of losses your business has suffered or the risks that may expose your business to losses that could, over time, financially impact your business. Because your insurance premiums are affected by your losses, you should evaluate your loss potential in order to keep your premiums affordable.
Take a Look at Your Losses/Trends
Regardless of how careful you are in the business operations, accidents can and do still happen. If you start experiencing a multitude of losses, you may need to take a step back and consider the types of risks most prevalent in your Alabama business and take action to find solutions to minimize those risks. If not, you may be looking at higher insurance premiums and/or a possible cancelation by your insurance carrier due to the high amount of claims you have experienced and submitted. Commercial underwriters are trained to review losses and any trends that may be occurring within a business and from there, calculate the proposed insurance premium rate or send a red flag for possible cancelation.
5 Key Tips to Reduce Your Losses and Insurance Premium
- Consider a lower deductible– A deductible is the elected amount of money you personally absorb if a covered loss happens, before the insurance company pays the claim. By choosing a higher deductible, you are showing your willing participation to contribute to your loss and will positively impact your insurance premium. If you can afford to increase your deductible, you will save money down the road.
- Record all losses/claims- Document every loss you have experienced as a business owner and record any trends and obvious risks that may be imposing issues. Only then can resolutions be implemented.
- Maintain regular communication with your local Alabama independent insurance agent- Your agent has a lot of experience and is willing to assist you to find business solutions to diminish your particular risk exposure.
- Work with your loss prevention department- By discussing any/all types of incurred losses or trends with your loss prevention department, you can open the door to an effective plan of action to minimize risks.
- Routinely train all employees on risk management, rules and regulations- Training and enforcing your proposed game plan to all of your staff to keep losses at a minimum requires routine education.
If you allow your losses to get out of control, you may be faced with insurance premiums that are unaffordable or a policy cancelation, which will force you to look elsewhere for insurance protection. Safeguard your business TODAY by calling Burkett & Associates Insurance Agency at 256-704-7400 with any questions regarding loss control and prevention within your Alabama business.