What to do if your corporate insurance premium went up and your limit went down?
Like other corporate leaders, you are likely feeling pressure and seeking to reduce costs. Whatever kind of company you run, you have insurance on your property and business. You may ask about what to do if your corporate insurance premium went up, and your limit went down.
Unfortunately, there’s not an easy answer. But, there are steps corporate professionals can take to try and mitigate their commercial insurance costs. Let’s review some of these ways to reduce these expenses.
Eliminate double coverage
You may want to start by examining and incidences where you can eliminate double coverage. While it’s generally advisable to get the maximum coverage available, you are well-advised to ensure your general liability coverage doesn’t offer other specific liability coverage (such as product liability) while you carry a separate policy for that particular liability coverage.
Check your business owner’s policy
A business owner’s policy could offer some coverage. Don’t pay for the same coverage in two separate policies, if possible. A business owner’s policy can often save premium expenses, as it combines both commercial property insurance and general liability insurance. As your company grows, ask your commercial insurance broker to shop different carriers.
Seek out discounts
Look for any possible discounts, such as safe driving and safety discounts. Monitor employees who work with company equipment or drive company vehicles. Sometimes, just a single driver with a bad driving history can cause your rate to go up.
Also, find out if multi-policy or multi-product discounts are available. Check to see if you can save on rates available to organizations and associations in which your business is a member. Or perhaps it’s possible to increase your deductibles to reduce the overall premium.
Workers’ comp insurance
Since your company has employees, you probably carry workers’ compensation insurance. Workers’ compensation insurance is one of the most costly components of a commercial insurance program. Although reducing worker’s compensation premiums is a whole topic in itself, there are ways to partner with your carrier to reduce costs.
Insurers cutting back limits
In general, liability rates have been escalating. Premium pricing is going up based on the prevailing market conditions. One of the most significant changes in the excess liability insurance market recently has been the contraction in limits available from individual insurers.
A limit is a maximum amount your insurer will pay for a claim covered by your insurance policy. For instance, if you file a covered claim, your insurance policy pays up to a specific amount. You are responsible for any expenses over that limit.
In reaction to these limits, corporate policyholders should make more use of their captives. Large corporations have substantial resources, and they should make decisions regarding whether their risk is appropriately priced in their marketplace.
Umbrella and excess programs are often restructured in response to numerous insurers cutting back limits. You should determine whether you can raise deductible limits, lower insurance costs, and set expectations of service with your broker, including an annual review, not just a yearly renewal.
A professional at PolicySmart can point you to different savings opportunities. Partnering with a professional can help you find ways to save some money and answer your question about what to do if your corporate insurance premium went up and your limit went down.