You have worked hard to establish and build your business so you know the protection of your livelihood is essential. Your business insurance protection is custom designed to cover the most typical risk exposures prevalent in your type of business, but lately you notice that your insurance premium has increased. You may want to take a look at the number of losses filed with your business insurer and take action to reduce premiums by controlling losses.
Take a Look at Your Loss Ratio
Yes, your business insurance is essential and is designed to cover catastrophic losses, but keep in mind that insurance is not there for maintenance protection. So, what that means is each claim should be individually assessed to determine why it has happened, how often it has happened, and whether it could be handled out of pocket without filing an actual claim with your Florida business insurer.
Suppose you own a florist shop and you have had multiple claims of “slip and falls” on your property that have generated significant injuries. Because this has happened on multiple occasions at your business location, any experienced business underwriter will recognize the frequency of this type of loss and adjust your Florida business insurance premium accordingly. Simply put, the number of losses claimed within your business is a predictor of future loss potential and often results in higher insurance premiums.
Ways to Keep Your Business Insurance Premium Affordable
You have to protect your business with the right type of business insurance but you need to keep the insurance premium affordable, but how? Below are some ways of controlling losses in an effort to keep your insurance premium affordable:
Assess/Document Each Loss- If you have multiple claims with slip and fall accidents, you need to assess what is happening to create that type of loss potential. Are your employees failing to clean up water on the floor causing a hazardous situation for your customers or are your floors uneven causing customers to fall?
Take Action to Correct Any Detected Hazards- Once you have detected any issues that are linked to your losses, take action immediately to correct any unsafe situations linked to the losses.
Routinely Communicate With Your Local Florida Independent Agent- It is recommended you keep in close contact with your Florida independent insurance agent to discuss your losses and typical risk exposures within your business so that he/she can provide adequate business solutions to minimize those type of risks.
Enforce Routine Training With Your Employees- Risk management is key in understanding some common risk exposures relevant to your business situation. Keeping your employees informed and trained on risk management is a preemptive action on your behalf as the business owner to reduce frequency in losses.
Evaluate Your Deductible- The higher your deductible (the amount you absorb “out of pocket” per loss) the lower your insurance rate will be. Contact your local Florida independent insurance agent to get a quote on how much you can save by increasing your deductible.
Controlling Losses Can Help You Save
Having the right type of business insurance protection within an affordable insurance rate is optimum and our staff at Ideal Insurance Agency understands this. We can provide tips in providing a safe work environment as well as offer sound business solutions to reduce your risk exposure, which are effective ways in saving money on your business insurance premium. Control your losses TODAY by calling us at 941-921-2102.