Deciding to open a business is a big feat that takes time, energy, commitment and of course, money. As a new business owner, you realize business insurance is key to handling the catastrophic losses that are bound to occur, but what if down the road, you find your insurance rates are rising higher than you can financially handle? This is certainly an obstacle; however, there are possible solutions to keeping your insurance premium affordable by controlling your losses.
Your business was running smoothly for the first few years, but over an extended time period, you have incurred a higher frequency of incidences within your company. An increased frequency of losses can certainly send a red flag to your commercial underwriter at which point, he/she will review the losses to determine whether a higher premium is then warranted. If an increase in premiums is warranted, will you be able to afford it? Not only that, but if you have a growing trend of losses, your coverage could be in jeopardy of cancelation.
Tips to Minimize Losses and Keep Your Insurance Premium Affordable
Look at Your Loss Ratio- Review and document all of your losses to see if there are specific trends/patterns to assess. Look for any obvious risks that could be contributing to losses and find ways to address these risks immediately in an effort to reduce your loss potential. Keep in mind that insurance underwriters are specialized in citing risks and losses, and from there determining the probability of future losses based on these findings. If you are one step ahead, you are one step closer to being able to afford your N.C. business insurance.
Contact Your Loss Prevention Department- By doing this, you can work together to find effective solutions to minimize risks, thus reducing future loss potential.
Train Your Employees- Training your employees on a routine basis can help establish open communication on what is expected of each employee, the risk management plan(s), procedures, and rules. Routine education for each staff member is key to reducing any trends for risks and losses.
Review Your Current Deductible- The higher the deductible, the lower your insurance premium. Consider the highest amount you can afford to pay out of pocket should a loss happen and then make any adjustments to your deductible if possible. Contact your local N.C. independent insurance agent for quotes on your insurance premium based on a higher deductible.
Communicate with Your Local N.C. Independent Insurance Agent– Regular communication with your N.C. agent is key to finding business solutions that will maximize affordable protection by keeping your risks low. Your N.C. independent insurance agent is skilled at doing this and wants to work with you as a business owner.
Control Your Losses and Avoid Trends
Remember this… Your past loss ratio is a determining factor of your future loss potential, so the more losses you have, the higher your premium will be. The goal of a commercial underwriter is to make sure your business insurance premium rates are in line with your risk potential and any noticeable trends. YOUR goal as a business owner is to maintain the safest environment you can for your employees, minimize risks, and reduce losses. The good news is that Twin City Insurance understands your goals and can work with you to control your losses so you can afford your insurance premium. Call us TODAY at 828-464-2643.