Most companies realize managing risk is an essential part of doing business, but no one wants to pay more than necessary for insurance. Fortunately, you have many options to reduce your New Jersey business insurance premiums while maintaining good coverage.
Reduce Risk
A strong risk management program reduces the likelihood of claims and having to pay higher premiums. Work with an insurance professional that can perform a risk analysis of your business.
They’ll look at your workplace and examine your data security protocols and training programs. Small changes can often have a big impact, and choosing the best option when you need to upgrade a major system can lead to significant insurance discounts.
Prevent Losses
New Jersey’s Public Employees Occupational Safety and Health (PEOSH) State Plan follows all OSHA standards proven to reduce injuries and illness. Building a strong safety program for your workplace around these standards is an excellent way to reduce injury rates, claim costs, insurance rates, and it ensures compliance with state and local laws.
Proper Employee Classification
Misclassifying employees can lead to unnecessarily high premiums, but it can also lead to legal consequences for your company. Tell your insurance agent when employees enter or leave employment or when they change roles.
Intentional or unintentional misclassification discovered in an audit can lead to lawsuits and substantial fines. If you’re unsure about whether a worker is a contractor or employee, ask your agent.
Bundle Policies
Carrying separate general liability insurance, commercial auto insurance, and commercial property insurance policies usually costs more than bundling all protection under a Business Owners Policy. Let your insurance agent review your coverage to ensure you’re not paying for redundancies and whether a BOP can help reduce your costs.
If your business relies on additional specialty coverage, they may be able to add it as a rider to a BOP or provide a multi-policy discount.
Pay Your Full Premium
Business insurance can be a significant expense, but choosing to pay on installments increases your costs. You’re paying interest and fees for the convenience of buying an item you always need, so it makes more sense to budget for the expense instead.
Increase Your Deductible
Increasing your deductible reduces your premiums, but it is only an option if your business has sufficient cash flow to handle the expense if you need to file a claim. If your business is doing well, it’s a simple way to reduce your expenses while maintaining good coverage. Discuss the matter with your agent to determine whether this is a viable option for you.
Match Coverage to Needs
Too much or too little coverage can increase your costs. Tailored insurance ensures you don’t pay for coverage you don’t need, but more importantly it safeguards you against risk exposure.
Price is always a consideration, but there’s more to good insurance coverage than a low price tag. You want a reputable insurance company that stands behind what they sell if you need to file a claim.
Your independent insurance agent has access to many quality products and understands the industry. They can source the best coverage for the most reasonable cost and you can focus on your business.
Annual Insurance Review
When it’s time to renew, it’s important you realign your insurance with your needs. Your company’s probably changed over the year and it pays to rely on the experience and expertise of an agent, instead of trying to insure your business yourself.
Remember, as a New Jersey independent insurance agency, we work for you – not the insurance companies, and we may uncover discounts or other important information during an insurance review.
