What do you hate about today’s economy? For businesses it’s just about everything. Profits are down, expenses are up, and credit is becoming tighter and harder to receive. Are you thinking about cutting costs, including reducing if not eliminating your insurance premiums?
Insurance fees are vulnerable to a business. Many companies view them as something not necessarily needed and always in the way. But that is something you do not need to think any longer. The insurance company can save a business in a number of circumstances and ways.
Instead, break down all your policies and reinvent them. By this I mean, change all your policies so they expire at the end of the year. Force yourself to have renew all the policies at the same time, instead of constantly renewing them at different times, all year long. A business is always looking to gain an edge over the competition. How about this edge? When you make all your policies expire at the same time you putting the insurance companies in a bind. You now have the power to influence all the insurance companies to match the price you desire. Insurance companies will practically bend their back, each trying to underbid the other for your service. Use the power to your advantage.
This theory has two major benefits. For one it’s easier on the business. Instead of constantly renewing policies all year long, the company can now focus on renewing all the policies on same date. Secondly, and more importantly, forcing to renew all policies at the same time puts the business in power. Now the company can force insurance providers to play a bidding game, each trying to outbid the other for your services. You are guaranteed to save money with this approach.
No matter how tough the times get, never drop your insurance all together. Instead use the practice I listed above. You would be surprised and how much money you can save.
Instead, look internally and figure out how to cut costs that way. For example, a lot of medium to large sized businesses hire independent insurance consultants to analyze their insurance coverage. Do these people really hold the best interests for your company or are they merely trying to negotiate the best deal for themselves? You can gain and learn a lot more about your business by handling the insurance yourself.
Break down all your polices and think hard about each one. Ask your insurance provider if there is anything you could do to break them all into one, specific rate. The specific policy might relate more to your business needs and save costs.
Never forget the importance of insurance. Study and learn how to make your policy cheaper but never jump the gun and cut insurance premiums all together. That my friend, would be a fatal mistake.
Graham McKenzie is the content Syndication Manager at insurance123.co.za South Africa’s leading Commercial Insurance information portal.
categories: Insurance,Finance,Business,Commerce,Commercial Insurance
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