Business owners have so much on their plates already that it can be downright exhausting to deal with sky-high business liability insurance rates that seem to just keep ticking upwards. Nevertheless, modern businesses which need to cut the cost of operating understand that stiff insurance rates can be what drags your company down in the long-run if they’re not managed.
Many business owners struggle with sky-high business liability insurance rates, but the truth of the matter is you can reduce your rates with the right knowhow and commitment. By making your workplace a safer environment and championing the wellbeing of your workers, you’ll be cutting down your business liability insurance rates in no time.
What causes your rates to go up?
Before you can hope to effectively do something about your sky-high business liability insurance rates, you need to understand what’s causing them to go upwards in the first place. After all, no business owner can solve a crisis they don’t even understand. So, what are the biggest indicators that your company’s insurance rates are about to hike upwards, and what can you do to mitigate this possibility?
First and foremost, the size of your company must always be taken into consideration. As your company’s workforce scales upwards, so too will your insurance costs, though many entrepreneurs fail to take this into consideration when onboarding new team members. Furthermore, certain industries are far more hazardous and risk-laden than others, with the direct physical risks your employees face on a daily basis being one of the most important elements in determining your rates. If you take some time to review the riskiest businesses and how they made insurance underwriters cringe, you’ll be better informed on which sectors of the economy have higher rates than others.
Similarly, the longevity of your company and the experience of your senior employees can make a huge difference in the rates you pay. Insurance underwriters are going to give you sky-high business liability insurance rates if you’re an unproven entrepreneur with a limited line of credit and few people to vouch for you. Having credible character witnesses and a positive public image of a stellar company that’s on the up and up is a good way of ensuring that your insurance rates don’t suddenly skyrocket.
Employers should be taking active steps to reduce their rates, though, and certain things like how you’re perceived by insurance carriers aren’t always easy to modify. There are some easy and concrete steps that you can take almost immediately to bolster overall workplace safety and employee wellbeing, and the sooner you start the better your rates will be.
Take plenty of safety steps
The best way to mitigate your rising business liability insurance rates is to take plenty of safety steps, beginning with a checklist that ensures everyone in your workplace is following proper procedure and leaving behind a paper trail which elucidates what they’ve done. Reviewing some other common tips for making your workplace safer can’t hurt, either, as some businesses do precious little when it comes to keeping their infrastructure in shape and their workers happy and healthy.
Speaking of workers, you should understand that poor employee health and low company morale are likely to lead to skyrocketing business liability insurance rates. After all, carriers can determine when your workers are ill or dissatisfied with company leadership, which can logically lead them to consider your business to be a greater risk than others. Focusing on the mental health of your workers and fostering a positive workplace culture will go a long way towards ultimately reducing your insurance rates.
Some business owners think the mental wellbeing of their workers is none of their business, but in reality, the mental health of employees is something that should be on every manager’s mind. Failing to ensure that your workers are feeling positive about their current status in life can lead them to suffer from mental illnesses or a loss of morale that could ultimately translate into increased insurance rates.
Happy companies full of content employees thrive and enjoy low rates, whereas struggling companies that shun the wellbeing of workers are essentially asking to pay for steep rates. Business owners who haven’t gotten serious about the mental wellbeing of their workforce should invest heavily in fostering a positive workplace culture where everyone feels safe. Additionally, running regular safety audits and following a safety checklist for most major commercial exercises can help you cut down on accidents which will drive your rates up.
Don’t make the mistake of thinking you’re stuck with a sky-high business liability insurance rate because you made some errors early on when starting the company. By following the right steps and keeping the wellbeing of your workforce in mind, any business owner can cut down on sky-high business liability insurance rates.