A recent study by the National Federation of Independent Business shows cost of providing health insurance is the #1 concern for small business, followed closely by availability of liability insurance and workman’s compensation. The rising costs of fuel have pushed that concern to the #4 spot so far.

It’s doubtful that insurance will ever become wildly popular expense for business. Benefits of providing and having insurance are often only evident after there’s been a problem. Many business owners simply see the premiums due and view insurance as another bill with little to no return.

Insurance doesn’t have to be a sore spot when it comes to balancing your business’ budget. There are ways you can work with your provider to help lower your insurance costs, mainly by reducing work related accidents. Here’s a few pointers to help ease the burden of those premiums:

• Know what you need: To gain a better perspective of the amount of coverage your small business needs, take a look at your industry. Review the recent legal actions and settlements in your field. Talk to peers and find their level of coverage. Using this feedback and research, determine the average legal costs and settlement to set your coverage limits.
• Look for an industry expert: Your business and industry has unique needs and risks. To get the best available coverage and rates, consider working with an insurance broker who knows your business and has experience in your industry.
• Call your agent or broker: It may seem obvious but can be easily overlooked. Simply call your agent or broker and explain what your business insurance needs are. Ask if there are any incentives your provider offers for lowering your insurance or programs you can enroll your business into to help reduce insurance costs.
• Background check and drug screen your employees: Not only will this ensure you’re hiring quality employees, many insurance providers offer incentives for businesses that perform drug screenings. Announce this policy to your clients with Seal of Trust Patches or vehicle Flip Frames.
• Membership has its privileges: Many associations and business groups offer insurance packages to their members at group rates. Contact your local Chamber of Commerce or Better Business Bureau for more details.
• Shop around: Rates and extent of coverage vary from insurer to insurer. Call around to find out who offers what services at what rates. Make sure to ask about legal fees. What percentage is included if at all?

Understanding exactly what you need for your business is by far the key to ensure you aren’t overpaying on your premiums. Beyond these steps, there are a variety of ways you may be able to help cut costs even further. When talking to your agent or broker, ask if your provider offers discounts for the following:

• higher deductibles
• more than 1 vehicle
• no accidents in 3 years
• no moving violations in 3 years
• driver training courses
• defensive driving courses
• anti-theft devices
• low annual mileage
• air bags
• anti-lock brakes
• daytime running lights
• auto and homeowners coverage with the same company
• long-time customer
• other discounts

You’ll never be able to eliminate the need for insurance (or our insurance bills) but with these steps in place you may be able to take some sting out of opening that insurance bill every month.