Whatever you're spending on general liability insurance right now could save you millions in the long run. But bringing your rates down will save you money now and later. So how can you do that?
- Invest in security. If you have the budget for it and you run a large facility — such as a shopping mall or factory — a full-time security staff can bring your general liability rates down quite a bit. Most of us aren't quite on that level, though. So simple burglar alarms and surveillance cameras can do the trick.
- Keep your insurance record clean. Any time you're thinking of filing a claim, consider whether it would be smarter to cover the damages from company funds instead.
- Be a stickler for safety. Train your staff, retrain your staff, and keep your shop clean. Provide your insurer with all the pertinent information on how you run your business and copies of your training manuals. Also let them know that you're putting safety first.
- Join state safety programs. Look into business safety programs run by your state government. This can help with lowering your rates across the board — especially for general liability and workers compensation coverage.
- Get a contract lawyer. With solid contracts, you can greatly reduce your risk of being caught up in a liability case owing to your dealings with contractors, suppliers and clients. Paying a contract lawyer to help you draft up the documents is an added expense. But it may save you quite a bit on your general liability insurance premiums.
The golden rule of liability insurance rates is simple: If you can spend a little bit of money right now to make your business safer and more secure for your employees, clients, partners and customers, then you're going to pay far less in the long run on your general liability insurance premiums.
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