How to Save Money on Insurance for Your Employees

While the cost of workman’s insurance policy can vary from one insurer to the other, they are measures you can take to ensure you get the best possible price for it. Keep in mind that the law requires you get insurance for employees to cover for damages that occur at the workplace. What follows is a rundown of tips to help you save some cash.

Keep Records of Your Workers

You need to know how many people you’re paying insurance for. By extension, this allows you to estimate yearly premiums. Also, be sure to remove the names of employees who are no longer working for you from your list. You can even consider giving them badges for easier identification if you run a big organization. And speaking of badges, visit Easy ID Card to view the services of a top-notch job card designer and how you can work together to document your workforce.

Opt for a Higher Deductible

A deductible is the first amount paid out-of-pocket by the insured in the event of a claim. Typically, insurance companies start offering discounts at a $500 deductible and continue to do so as your deductible increases. In other words, the higher the deductible, the cheaper the premiums. Nonetheless, make sure your emergency fund is enough to cater for your deductible in case of a claim.

Leverage on Multi-policy Discount

When an insurance company handles all your insurance policies such as auto or personal accident, you will qualify for a multi-line discount, mostly worth around 5 to 15% off the total premium. Some insurers offer higher discounts if you open savings and opening checking accounts as well.

Pay for What You Only Need

While it’s imperative that you take comprehensive insurance policies whenever possible, it is not worth insuring against risks you are unlikely to encounter because doing so only translates to paying higher premiums. For instance, there is no point in paying for an earthquake extension if your business is not in an earthquake-prone area.

Nip Loss Risks in the Bud

Installing burglar alarms, smoke detectors, storm shutters for the doors, hurricane resistant siding and deadbolt locks can earn you discounts that can make up for most (if not all) additional costs. The idea is to reduce work-related injuries. However, you need to check with your insurer to ensure the safety system you install qualifies for discounts and how much you can save if you install it.

Good Credit Score Equals to Lower Rates

Most insurers nowadays use the customer’s credit history as part of their pricing benchmarks. If you have a good credit score, you will pay less for your workman’s policy. Insurance companies primarily consider a clean credit record as an indicator of good risk. It is essential that you keep checking your credit report on a regular basis and amend any errors that you may find.

In conclusion, shop around periodically.  Statistics indicate that about 10% of the insuring public switches insurers every three years because they got a better deal elsewhere. Be sure to check if your state’s insurance department publishes online rate comparisons or get in touch with an insurance agent who sells policies from multiple carriers once in a while.