Two Things You Can Do Today to Lower Your Business Insurance Premiums to Weather the Coronavirus Storm
Last week was tough. Call after call, I spoke with business owners and others in management roles who are feeling scared and anxious right now for obvious reasons. Due to the effects of the Coronavirus, they’ve already had to either lay off staff or furlough their hours to save on operational costs.
Some were calling to inquire about canceling their insurance coverage entirely until we get through this storm. My advice has been that we might not need to go down that road right now.
Before taking such drastic matters, here are two things you can do today to lower your insurance premiums without sacrificing or eliminating your current coverage:
- Review your estimated annual sales with your commercial insurance agent/broker and make adjustments to your liability insurance policies. Liability insurance premium is typically rated in accordance with gross annual sales/revenues, subject to audit at the end of the policy term. Rather than wait for the audit at the end of your current policy term, adjust your policy now to get the premium down which will help save on your monthly costs.
- For your Workers Compensation insurance policy, review your estimated annual payrolls and make any adjustments now rather than wait for the annual audit or canceling the policy altogether. If you’re at a standstill and do not have any payroll, or very minimal payroll, make the adjustment now.
Insurance carriers are making billing accommodations and extending grace periods for cancellations by as many as 60 days. Call your insurance carrier billing departments right away and explain your situation. Do not wait. They’ll most certainly make accommodations based on the current state of affairs.
Times are challenging for the entire world right now, but I believe we’ll get through this just as fast as we were thrown into it. Although insurance premiums aren’t the only operational cost for a business, they are one that we can control now by taking these types of measures. By doing this and maintaining your coverage, you won’t have to go through the process of re-applying for insurance once things are back to “normal.”
This too shall pass.
Well here we are, Monday, bunkered up in our homes with our tribes self quarantining ourselves from society the to help stop the spread of the Coronavirus. It’s eerily slow at work. There’s so much uncertainty in the air. I am positive this will pass soon though. As long as we all follow directions and do our part to help slow the spread of this thing. And the faster we stop the virus, the faster we can get this economy back in motion and pumping again.
I’m personally not worried about getting sick from the Coronavirus, I’m just anxious about the repercussions it will have on society and the economy.
I was skeptical about all the news at first but to those who don’t want to listen to authority, stop being stubborn and just listen to this. It’s 18 seconds of some of the best advice you’ll Get on the Coronavirus:
I don’t want people to get sick but most importantly I think we all can agree that we just want to get back to “normal” life and this is the only way we’re going to get there.
The faster the better