All good businesses have an eye on controlling expenditures. There are several actions you can take to manage your cost of insurance.
Review auto and equipment schedules. Let your insurance agent or broker know about any changes in your business’s ownership of vehicles or equipment If the policy is still covering something you no longer have, request that it be removed. Also, as equipment ages, its value declines. Review any limits for accuracy and consider if it’s cost-effective to pay for physical damage insurance on older vehicles or equipment.
Review employees. Specifically, what information is your insurance company using to determine premium? For example, is the driver schedule used by your business auto insurance company still accurate? Employee turnover, as well as a change in an employee’s role (e.g., the employee moved to a clerical role and no longer drives a company truck), should be communicated.
Review property schedule. If the policy still covers buildings that have been sold or personal property that’s no longer owned or used (such as a manufacturer that stopped making and storing a specific product line), inform the insurance company.
Review worker classifications. Premiums for workers compensation coverage vary based on how an employee is classified. Ensure workers are classified correctly. You may need to insure temporary workers and interns, so check state law and your coverage carefully.
