General liability insurance is one of the most valuable of all forms of business insurance. Each year, millions of claims happen, many of which can financially drain a company that is otherwise uninsured. This coverage helps protect them.
As a business, though, the costs to pay for these insurance products can seem overwhelming. If it is time to renew your policy, it may be a good time to review your costs and coverage options. That could open the door for cost savings. Here is where to look.
Review Costs Based on Use
One of the steps to minimize costs is to not overpay for coverage that you don’t realistically need. The amount of coverage you have directly impacts the cost you pay for it. You never want to limit your protections; that can be financially devastating. However, you also do not want to overpay.
Review your policy with your insurance agent. Look back over the last five or so years. How many claims did you make? Next, take a look at the industry average in your area. What is the likelihood of filing a claim? And, how much general liability insurance do businesses of your size have locally? Use this information to determine if you have enough or too much coverage.
Perhaps as you review your policy you begin to notice a few trends. Maybe you have some claims for injuries to clients who alleged that they got hurt in your store. This may be a good time to review why this happens. What can you do to reduce these risks going into the future? By reducing the risks present in your sphere, you can minimize the impact that you will face other challenges in the future.
Some companies may benefit from safety programs. For example, if a quality control program can be helpful at catching mistakes before you ship products to clients, that could reduce liability risks. Work with your team to determine ways to make your location safer and better protected from injuries to visitors or customers. Try to target specific areas of high concern within your organization.
General liability insurance costs tend to rise year over year. This applies to just about anything as the cost of living increases. Yet, you can always seek out a new policy or request a quote from another carrier to compare your costs. The more information you have, the more likely you are to make wise financial decisions for your company going ahead. Invest in a policy reflective of your needs now, but keep your eye on the future.