Part 2 of a 6 part series
- 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; balance.
- 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 deducible, 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 extend payment grace period.