How to Lower Your Business Insurance Premium

Are you sick of getting stuck with high insurance premiums for your business? Business Insurance Premium, TJ Woods Insurance, Worcester, MAAfter mandatory business expenses such as taxes and payroll, these costs can lower the positive cash flow of a company. Insurance is no exception. Fortunately, there are ways that one can lower their business insurance premiums without having to give up vital coverage.

One great way to obtain a lower insurance premium is to join a business group or trade association that has an affiliated member that is an insurance company. The insurance company will offer a specialized discounted group coverage plan for members, due to a lower risk factor and increased business opportunities.

Fortunately, associations exist for just about every industry out there, so it shouldn’t be difficult to find one that your company can join. While a membership fee may be required, it is most likely that the small fee will be nothing compared to the money saved through the group insurance discount. The following excerpts from offer advice on how to utilize a business group to lower your insurance premium.

Insurers base business insurance premiums on the insurer’s exposure to risk. The risk can be from the nature of the business or activity and from the relative size of the number of businesses in the insurer’s risk pool. The larger the number of insureds, the easier it is for the insurer to spread risk and lower premiums among similarly situated businesses. This is one of the arguments for a “one payor,” mandatory, health insurance system.

One way your business can look to lower premiums is membership in a professional organization or business group that offers insurance as a benefit of membership.

Depending on the amount of business that an association can offer to their insurance provider, they will be more willing to lower the cost of the premium. Therefore, encouraging any comrades in the industry to join may prove beneficial to your wallet.

Most types of business insurance are included in this type of group benefit, whether it be health insurance, liability insurance, etc. A business group will also have already picked out a specific plan for its members that will contain only the coverage valuable to that specific industry, so you will not need to waste time choosing coverage types. The specific agent that works with the group will be more familiar with the ins and outs of insurance for your specific industry.

Not only is a discounted rate one of the many benefits of joining one of these associations, but many groups also have opportunities for networking. Networking has the potential to grow your business, and therefore put more money into the cash flow. Many of these professional organizations offer risk management courses as well. Learning the best methods for lowering your risk as a business will improve the price of your insurance premium for the future.

In some cases, the group has sample risk management programs, forums, and other resources which can assist the business owner in maintaining lower premiums. Best practices and procedures and examples, as well as expert advice, are also available.

If you would like to learn more about other ways to lower your insurance premium, please contact an agent at TJ Woods Insurance. We would be happy to help you find the type of coverage that you need at the best rate possible.

Are you already a member of a business group or professional association? Check if your group offers insurance discounts, then post here so that others can learn more!