How to Start 2010 Off the Right Way
What small businesses can do right now to start 2010 with the upper hand?
Small businesses notoriously overpay for their insurance due to lack of risk management strategy. If you were to commit to a strong approach to your insurance, safety practices, risk management and forecasting, you would be able to save money in 2010 on your premiums, as well as improve efficiency and profitability.
Here are a few tips that you can implement today that will minimize risk and maximize profit:
1 – Get a complete diagnostic of your safety program. Injured employees cost small businesses money in increased workers compensation premiums, loss of time, and hiring or moving people to replace the injured worker. Offices have a huge issue with ergonomics, as this accounts for 50% of workers comp claims in the country. Being able to identify exposures and put safety practices into place to alleviate them will have a direct impact on their bottom line.
2 – Bid out insurance. The insurance market is still “soft,” meaning that premiums are down and competition for business among insurers is up. Not looking at all possibilities is simply not prudent and can be expensive. Regardless of when their renewal is, they should make a commitment to aggressively bid out their insurance.
3 – Get a complete diagnostic on your property and casualty insurance. I rarely find a policy that can’t be adjusted to save money. Normally, business owners leave the programming of their policies to the agent or broker without getting involved. This is an area that with proper attention could immediately improve the program by cutting costs and/or preventing uncovered claims.
4 – Consider Health Savings Accounts (HSA) for medical insurance. The programs will vary among states and insurers, but this is a real option to save money for the employer and actually provide a flexible policy for the employee. I had a client that saved $6,000 a month making the switch last year.
Start off this new year and decade the right way for your business. Minimize your risk and maximize your profit by implementing these strategies today!
© 2010 Dan Weedin - All Rights Reserved
