Insurance Corner: Tips to reduce your business insurance premium
by Martha Marton

How can you reduce your business insurance premium? An insurance company bases insurance premiums on the risks involved. They evaluate each situation to determine the risks, or potential for losses and your rates are based on their evaluation of those risks.

To help insurance companies see your company in the best possible light, consider these tips. Your company will benefit by reducing the chances of a loss and your insurance company should reward your lack of claims and good safety practices with better rates.

Install a sprinkler system, smoke and fire alarms.

Install burglar alarms, dead bolt locks, security lighting and other security devices. In high-risk areas or with high-risk inventory you may consider 24 hour security.

Keep electrical wiring, stairways, carpeting, flooring, elevators and escalators in good repair. Hallways and entrance areas should kept clear of debris. Have elevators and escalators inspected regularly.

Keep only a small amount of cash in the cash register.

Keep good records of inventory, accounts receivable and equipment purchases. Notify your insurer of any major changes and purchases.

Consider keeping a second set of records offsite, such as with your accountant or at home.

Make sure your employees have good driving records. Re-check those records at least annually. If they drive your vehicles, check more frequently and have a good safety manual.

Maintain adequate lighting throughout your business premises.

Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles, gloves and respirators.

Talk to your employees about safety practices. Maintain a safety manual and refer to it often. Safety meetings area great way to maintain employee's awareness of safety practices.

You may consider using the services of a risk manager. An outside consultant can advise you of any safety or environmental regulations you may have overlooked.

You may also want to raise your deductible where appropriate to lower your premiums. How high to raise the deductible should be governed by how much you can afford to pay out of pocket. Be careful not to raise it so high that you cannot cover it should a loss occur.

For more information on how to protect your business, contact Martha Marton at Tupling Insurance Brokers Limited. Direct Line 705.458.8111 marthamarton@tuplinginsu rance.com

Tupling Insurance Brokers, 1070 Innisfil Beach Road, Innisfil, ON L9S 4T9 705.431.5585