Take a proactive approach to save insurance dollars during lean times

As a business owner suffering a downturn in sales/business, such as what many are going through now, one of the first bills to be left unpaid is the monthly insurance premium. This is usually the case since insurance is perceived as a non-tangible asset, not utilized unless a loss occurs. The problem with this approach is that it leaves the business owner vulnerable to a multitude of potential hazards by leaving themselves unprotected with the loss of their insurance coverage. I would suggest taking another step, somewhat less drastic. If times are tough and the wallet is feeling the pinch, pull out your policy and review your coverage carefully. Make a list of all the items covered under your property section and pare down or even eliminate those items you think you can do without. Many businesses have extra vehicles and equipment listed on their policies that, given some thought, they can do without. If you can continue to provide the level of value and service necessary to run your business, without sacrificing your product, then remove those items now, you can always put them back on when business is back to normal. On the liability side, many policies are written on an auditable basis, such as general liability and workers compensation. When reviewing your general liability you will find that it is rated on either sales or payroll. Review these items and see if they are matching up to what was forecast at the onset of the policy. If you find that these figures are trending down, request your agent decrease your sales/payroll. Insurance companies will want proof, which can easily be provided through quarterly tax reporting paperwork or other pertinent documents. The same applies to workers compensation, review payroll and request a decrease if your payroll is down. These are proactive steps a businessowner can take to ensure the continued viability of their business without putting themselves in financial peril. Some coverages are absolutely necessary when running a business, general liability and workers compensation being the main items on the "must have" list. By taking action now you can save insurance dollars while still retaining the protection necessary to run your business.