Most company owners recognize the importance of carrying quality business insurance. These companies also need to ensure the policy they are purchasing is the right fit for their budget.  

It is never wise to reduce the quality or amount of insurance protection a company maintains in order to save costs. But, there are ways to reduce premium costs to more effectively meet budget needs. 

#1: Take Steps to Reduce Risk 
The easiest way to keep costs down is to minimize the risks your business faces. Put in place a risk review to look at troublesome scenarios. Then, put a plan in place to avert these crises. By reducing your risk quotient, you also reduce the likelihood of claims — and the associated insurance rate increases. 

#2: Ensure Your Employee Categorization Is Accurate 
Workers compensation insurance is a key component of business insurance coverage. If an employee gets sick or hurt on the job, you’ll likely need to compensate that employee while they recover. 

Categorize your employees to ensure they are properly represented within the plan. Ensure accuracy throughout this task, and make sure you do not downplay the risks your employees face. Revisit this process over time as you experience employee turnover. 

#3: Amp Up the Security 
Another way to reduce costs is to beef up your security. Take steps to protect: 

• The building and its contents — such as inventory and computer systems
• Your customer data
• Employee data
• Your vehicles
• Any offsite equipment or inventory you maintain