If you have never formally managed a risk before, starting can be a daunting process. However, it’s likely that you’re already using strategies throughout the business. These tips are simple to implement in your insurance process and will help you lower costs. Keep reading on the most effective ways to improve your insurance program without the hassle.
KeepYour Company’s Loss Ratio Low
A loss ratio is a premium paid divided by the cost of claims incurred. When renewing a policy, or shopping around for cheap insurance quotes, an insurer will look at your loss ratio. Low loss ratio will make your company attractive to insurers, which will result in competition over your account and lower premiums. If you’ve had a good loss ratio then, in the long run, you should achieve better terms and price.
If you’ve had a bad loss ratio, later you may pay higher rates, have exclusions added, have limits reduced, deductibles increased, or not be renewed. What constitutes an acceptable loss ratio depends on the insurance company, the type of business, and many other factors, but obviously lower is better.
SellYourself To Your Insurer At Every Opportunity
Mostbusinesses have positive attributes that are not known by their insurer. Many have policies, procedures, practices, and other features that insurers would look upon favourably if they were aware of them. So don’t keep them to yourself, use them to your advantage.
Make sure you tell your insurer about all loss control/ prevention measures in place. Give them copies of any policies, inspection forms, accident reports, training line-ups etc. Remember, not only are they competing with all the businesses for their capacity and for favourable consideration.
Finally, vehicle loss control is an area to focus on for many businesses. They are the most significant source of loss for many companies. Insurers went to know that you are being proactive in preventing motor vehicle losses.
There are many ways to prevent vehicle losses and the more you employ, the fewer your losses will be, and the lower your premiums will be in the long run. All the tips mentioned above will help you improve your insurance program.