Administration Expenses (2 of 6): Cutting Insurance Costs - John M. Leask II CPA/ABV, CVA

Administration Expenses:

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.


  • 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.

Back to The Business Doctor

>>Administration Expenses (1 of 6): Cutting Administration Expenses
>>Administration Expenses (2 of 6): Cutting Insurance Costs
>>Administration Expenses (3 of 6): Cutting Interest Charges & Legal Expenses
>>Administration Expenses (4 of 6): Cutting Supply & Telephone Costs
>>Administration Expenses (5 of 6): Printing, Rent & Misc. Costs
>>Administration Expenses (6 of 6): Training & Utility Costs