It seems that insurance costs are always on the rise. In an era when many companies are forced to make drastic cuts just to stay afloat, insurance companies seem to be content to pass costs down to consumers. If you want to keep your company’s insurance costs low, there are several alternatives you may try. You can engaged in a rent a captive insurance scheme, seek to offer more employees insurance to find a lower bulk insurance rate, or you may simply try to reduce the danger inherent in your business.
More Employees, Better Rates
One of the hardest things to determine about insurance rates is that rate costs tend to go down if more employees are actually insured. The concept is similar to buying in bulk; more products bought means a lower price. If you find that the rates being paid by your individual employees are simply unreasonable, it may be wise to expand the insurance offerings to a greater number of your employees. Depending on the rates that you are charged, this may well help your company to save a bit of money on insurance. -Rent A Captive-
Rent a Captive
Captive insurance companies tend to be a bit tricky. These units are often subsidiaries of a larger company, and are almost always domiciled outside of the United States. These companies only insure the parent company, and the costs can be significantly lower than buying traditional insurance. If your company does not have the money to purchase a captive, the rent a captive alternative exists. By buying non-voting shares in the subsidiary, you may receive the benefits from the unit. These companies only tend to act as re-insurers within the United States, but the lower costs can be quite helpful if you are in the midst of a large undertaking.
Cut Down on Danger
Insurance costs are directly related to risk. As such, riskier businesses tend to be charged higher premiums. In many cases, there is simply nothing a business can do but try to cut costs in other areas. However, reducing unnecessary danger can help you to cut costs significantly. This may mean the installation of new safety equipment or offering employees certain benefits or privileges for being safer. The elimination of unnecessary danger cannot only help you to reduce your insurance overheads, but it can also help you to keep your business functioning as a safer overall unit.
If you want to cut down on your company’s insurance costs, there are many different tactics you may try. You can offer the policy to more employees to get better bulk rates, you can emphasize safety to reduce risk, or you can event invest in a rent a captive scheme. Regardless of your choice, keeping insurance costs down should be a priority for any business that wants to remain successful.