Part 2 of a 6 part series
Warning Signs:
- Increased administrative expenses.
- Increased overhead expenses.
- Significant adverse deviations from budget.
- Significant increase in a particular line item's cost.
Steps to Improve: CUTTING INSURANCE COSTS
- Don't overinsure - understand risk, assess coverage, reduce risk.
- Understand terms - choose right deductible. Is right risk category used?
- Cut property insurance costs.
- Pick your insurance agent's brain to trim premiums.
- Each year, review your entire insurance program with an experienced professional.
- Reduce general liability insurance.
- Reduce auto insurance cost.
- Cancel insurance on unused vehicles and equipment.
- Substantiate losses - establish the right records, before and after. Use independent estimator, don't give unreasonable initial estimate.
- Low/high claims settlement process or arbitration when differences exist.
- Insurance - Liability: negotiate terms and rates, disappearing deductible, self insurance-whole or partial, stepped-up risk control.
- Insurance - Medical: Negotiate rates and terms - they are negotiable e.g. - services at real cost, limited self insurance (against catastrophe), and extended payment grace period.