Risk & Business Magazine Miller Insurance Fall 2016 | Page 27

THE MAGNIFICENT SEVEN

The Magnificent Seven:
Seven Ways To Reduce The Cost Of
Commercial Insurance Policies

F

or many companies, insurance
premiums are a major cost
of doing business. If you can
reduce the cost of insurance,
you will have more money
to invest in your business. Here are
seven steps you can take to lower
your insurance premiums (these
tasks should be performed annually
before your policies renew):
1. UPDATE YOUR INSURANCE FILE
Start your review by looking at your
insurance file. Your file should contain
copies of all your insurance policies so
that they are readily available when you
need them. You should keep copies of
claims forms for each policy. Be sure to
maintain a duplicate insurance file at an
off-site location, such as a safe deposit
box at your bank. You will need your
policies and claims forms if the original
file is destroyed by a fire or other peril.
2. REVIEW YOUR AUTO AND
EQUIPMENT SCHEDULES
Review the list of covered autos on
your commercial auto policy. Look
at the equipment schedule on your
commercial property or inland marine
policy. Does your business still own
the vehicles or equipment listed? If the
answer is no, ask your agent or broker
or insurer to remove those items.
3. REVIEW YOUR LIST OF EMPLOYEES
Review the list of vehicle drivers provided
to your auto insurer. Are the drivers
still in your employ? Your insurer may
be charging a higher rate for a problem

driver who is no longer your employee.
Moreover, a coverage you purchased
for a specific employee, such as Drive
Other Car coverage, will not be needed
if that worker has left your company.
4. LOOK FOR UNNEEDED OR
OVERLAPPING COVERAGES
Your policies may cover risks that no
longer exist. An example is a building
you sold several months ago that
is still scheduled on your property
policy. Some coverages may overlap or

“YOU SHOULD
KEEP COPIES
OF CLAIMS
FORMS FOR
EACH POLICY.”
duplicate each other. You don’t need
to insure hired autos and non-owned
autos under your general liability policy
if those autos are covered by your
commercial auto policy. Ask you agent
for assistance if you need help identifying
overlapping or duplicate coverages.
5. ADOPT AND MAINTAIN A
CONSISTENT SAFETY PLAN
A safety plan can help you eliminate
hazards that can lead to accidents,
injuries and lawsuits. Such a plan
will be effective only if it is enforced
consistently. Review your plan annually

and analyze its results. A good safety
program can help you reduce losses and
lower your workers’ compensation and
general liability premiums. If you need
help establishing a safety plan, consult
your insurer. Many insurers offer risk
control services to their policyholders.
6. DISCUSS YOUR PREMIUMS
Discuss your rates and premiums with
your agent or broker. He or she may
offer options for reducing the cost of
your insurance. Your broker may suggest
increasing your deductibles, switching
insurers, or utilizing self-insurance.
7. TRAIN YOUR WORKERS
Workers need training to ensure they
perform their jobs properly. Well-trained
workers are less likely to sustain onthe-job injuries or injure someone else.
Some types of training may result in
premium discounts. For example, a
defensive driving program you provide
to your employee drivers may reduce
your commercial auto premium. Ask
your insurer what types of training
will reduce your insurance costs. +

BY: MILLER INSURANCE

FALL 2016

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