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20 Tactics to CUT Your Business Insurance Costs

By: Jack Nicholaisen author image
Business Initiative

There is a lot that can go wrong when running a business.

Property damage, bodily injury, financial losses, and a whole list of other disastrous situations can completely derail a perfectly good business.

All it takes is one customer, client, or employee to experience some unfortunate turn of events and then they’ll be looking at your business to front the bill and recompense them for their losses.

Depending on the extent of the damage, it can prevent your business’s growth or completely wreck your whole operation.

Regardless of your line of work, there are many things you can do to reduce - and even completely eliminate potential risks.

By getting business insurance, implementing preventative measures, and following safety guidelines, your business will be able to avoid total devastation and recover faster in the event something goes wrong.

Insurance policies can be combined with the preventive measures list to further lower your risk of accidents or other events which may disrupt your business’s day-to-day operations.

Here are a few tips and tricks you can use today to lower your risk of ever having to deal with the most common insurance claims mentioned above:

Burglary and Theft

1. Install fencing around the building and parking areas to limit entry/exit to one or two gates.

2. Security camera systems and access keys using company ID cards.

3. Installing sufficient lighting both inside and surrounding the building.

4. Employee background checks

5. Practice operational security and use password access for company files whenever possible.

Reputational Harm

6. Do not criticize your competitors in front of customers or on social media. In fact, you really shouldn’t be criticizing them period.

7. Get permission before using other peoples’ photos, graphics, or other forms of information so as not to break Copyright and Trademark laws.

Water and Freezing Damage

8. It’s a good idea to not let your buildings’ internal temperature drop below a certain point, even if nobody will be in the building for an extended period of time.

9. Regularly clear snow and ice off roofs to avoid excess buildup. and subsequent collapses or cave-ins.

10. Always inform managers and other high-level employees where the building’s water shut-off valves are located.


11. Create, practice, and follow and emergency preparedness plan.

12. Make sure all emergency exits are clearly marked.

13. Employees should always know where the closet exit is and also where the next closet one is, just in case the first exit is blocked.

14. Follow your local and the national fire codes and regulations. Make sure to test your emergency equipment on a regular basis. This includes things like sprinkler systems, fire extinguishers, fire hoses, ladders, etc.

Wind and Hail Damage

15. Regularly trim trees on company property to avoid overgrowth.

16. Make it a routine to walk around the building and remove any debris which could cause damage or harm in the event of a serious storm or high winds.

17. If you store some equipment outside, make sure it is safely secured in place and won’t be carried away by strong winds.

Vehicle Accidents

18. Check employee driving records before giving them the keys to company vehicles and equipment. This also applies to letting them drive personal vehicles for business purposes.

19. Reckless driving or equipment operation by untrained personnel endangers your business, the driver, pedestrians, and anyone else in the vicinity.

20. Do not incentivize speedy deliveries. They don’t save as much time as you think they do.

There is risk of incident any time a transaction is completed between your business and at least one other party. To put it differently, the more business you do, the more of a chance of a mishap.

Don’t worry.

This shouldn’t discourage you from taking initiative.

Just take time to consider the areas where your business needs the most protection. For instance, what processes does your business depend on and which carry more inherent risk?

The answer to this question varies from one person to the next and will determine which insurance policies are best for you.

It doesn’t matter how small or big your business is, you’ll always be better off having the right insurance and never using it than to be lacking coverage when you need it most.

It can mean the difference between keeping your doors open or closing them for good.

With so many different commercial insurance plans, you can get the right protection for your company’s assets based on the risks your businesses may be more likely to encounter.

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About the Author

jack nicholaisen
Jack Nicholaisen

Jack Nicholaisen is the founder of After acheiving the rank of Eagle Scout and studying Civil Engineering at Milwaukee School of Engineering (MSOE), he has spent the last 4 years disecting the mess of informaiton online about LLCs in order to help aspiring entrepreneurs and established business owners better understand everything there is to know about starting, running, and growing Limited Liability Companies and other business entities.