Gaining the Upper-Hand with your Business: Tips for Insurance

Written By: Graham McKenzie on November 28, 2009 No Comment

It’s never been easy to run a business, and it’s certainly not easy to run a business in the current economic crisis. More and more businesses are shutting down because they cannot keep profits up with expenses. I know what you are thinking, “I could cut my insurance premiums or insurance all together.” Bad idea.

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.

Insurance is expendable in one way. With the wide assortment of policies your business has, you probably get sick of constantly renewing expired terms, right? Why not transfer and make all your policies expire on the same day. This means you can renew all the policies at the same time, saving money and hassle.

The new bid will certainly save you money and it sure beats having little or no protection. Chances are you have the same coverage, and now it’s at a lower cost. It’s hard to beat that deal.

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