As a business owner, you know adequate protection must be in place in order to protect everything you have worked so hard to build. Business insurance is a must for that protection, but in order to keep your insurance premiums affordable, you need to know how to control your losses. Keep in mind that insurance is designed for catastrophic loss protection for your business and not for maintenance protection.
Frequency Predicts Future Loss Potential
Suppose you are a small business owner and have had several slip and falls on your property, resulting in injuries that prompted claims. As an outcome, a red flag may be acknowledged by your insurer, which could result in higher premiums or maybe even a cancellation of your business policy. Business underwriters are experienced in assessing the frequency of similar claims and adjust the insurance rates accordingly. Do you need to take a closer look at your loss ratio?
Ways to Control Losses to Keep Your Premium Affordable
Document/analyze all your losses- If you notice a trend in similar types of losses, then you need to incorporate solutions to correct the issue(s) that may be the problem for your recurrent risk exposure.
Communicate with your local N.C. independent insurance agent- By staying in contact with your insurance agent with regards to your losses and risk exposures, you will be privy to using his/her expertise in finding business solutions to minimize those risks.
Evaluate your deductible- The higher the deductible, the lower your insurance premium will be as it shows you are a willing participant to absorb some share of your loss.
Loss control- Being proactive on the forefront can save you money down the road by taking preemptive measures to reduce the likelihood of claims occurring.
- Assess your risks, loss patterns, and property for any deficiencies that may be apparent and work to correct any potential hazards.
- Seek recommendations from your loss prevention department on ways to improve your situation and establish a plan of action.
- Train your employees on risk management
Don’t Let Frequency Lead to Severity
Commercial underwriters tend to link frequency with severity in that the more frequent a loss happens, the more likely the severity of future claims. These are all beneficial ways to promote a safe work environment that helps to reduce your business exposure/risk and therefore, can maintain an insurance premium that is favorable to your budget. Call Paramount Insurance Agency today at 866-869-3335 with any questions on ways to reduce your losses while controlling your insurance premium.