Recession Cut Backs on Safety May Prove Costly

It is a proven fact that businesses that focus on loss control, safety and risk management pay a lot less in business insurance premiums. When compared to thier respective peer groups, these businesses can pay 20-30% less in business insurance costs. However with the lingering recession, many business owners over the last few years have cut spending money on safety and risk management programs, only to see their loss histories deteriorate. Though most business owners have yet to see their rates go up because of the soft, highly competitive insurance market, the true costs will come home to roost when the insurance market starts to "harden" rates next year. If you have cut your safety programs, put them back in place. It might be real hard to find the money, but you will be glad you did when the commercial insurance market changes and "punishes" businesses with poor loss histories. Until next time remember if you know your risk and can measure it then you can control it. Kevin
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