A yearly review of your current commercial vehicle policy could yield savings.
Very often companies only review their policy (or policies) when a major change takes place, such as adding to their fleet of vehicles or getting rid of old equipment.
However, there can be incremental changes to your business situation over the course of a single year that can result in an opportunity to reduce your overall commercial insurance cost.
Factors affecting the overall cost of commercial liability insurance
When policy reviews take place it’s not uncommon to find outdated information that could have saved the company money if it had been updated earlier.
For example, a new truck is purchased to replace another but the newer model has more safety features than the old one. There will be savings based on these safety features that may not have been factored into the original policy.
Make sure all equipment owned and insured is correctly documented.
Has all the old equipment been removed from the policy? This inventory may take time but will make a difference in the bottom line and over years, thousands can be saved.
Additionally, you may be paying for too much coverage.
For example, you may have coverage for irrelevant situations related to your property location, or duplicate policy coverage. According to Lauren Bruen Nicholson of Bruen Delden DiDio Insurance in Brewster, NY this is fairly common. In fact, she advises business owners that when it comes to business liability insurance coverage “risk assessment is essential in determining what type of coverage, and how much, you really need.”
Additional reasons for getting an annual policy review
There are other changes to your business that could result in reduced insurance cost.
For example, has some of the companies work been outsourced so that an aspect of the policy is no longer needed? And have some employees left? Or have new employees been hired?
In fact, Pearson Cronin & Jacobson, Inc. recently shared that when it comes to commercial liability insurance “how you answer these questions will help to determine what type of policy, or policies, that are required to give you the coverage you need.”
Review key employee or key insured data to make sure it is accurate and up to date.
The driving records of these employees will factor into costs and perhaps new hires have better driving and safety records that will affect the cost savings of the policy. And certain jobs may be less risky than others within the company. Do you really need the same insurance for your sales force that you do for line workers who are exposed to heavy equipment and more hazards?
Companies that institute safety plans and offer on-going training pay less annually for commercial insurance.
Tracking safe days, weeks and months by driver and creating incentives for perfect safety records can encourage safety practices. Professional driver training courses will reduce policy costs, much like the driver safety training we can opt for with personal auto insurance.
This really does make a difference.
Along with on-going driver training, encouraging a safe workplace through healthy habits can pay off as well. By offering alcohol awareness courses, premiums can be reduced by as much as 10%. If you own a large company this can add up to big savings.
And don’t forget about professional associations within your industry that offer discounts that will save the company money.
The bottom line?
By getting a review of your existing commercial liability policy a knowledgeable insurance agent can identify possible errors with your policy or coverage gaps, helping you to save money while ensuring you have the right coverage for your business.
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