How to Leverage Your Business Insurance — 5 Tips

1. Look for Customizable Packages

It’s time to identify and embrace bespoke insurance solutions. Insurers can often work with underwriters to customize policies for specific businesses or industries more effectively. So, don’t settle for out-of-the-box insurance policies; ask your brokers for more options.

For example, MaxPRO, an exercise equipment manufacturer driving optimal fitness outcomes, decided to purchase critical insurance policies due to working in a claims-intensive industry. This was essential due to the risk of injury or manufacturing defects, among other factors.

But what they didn’t realize is that much of their policy coverage overlapped, meaning there was room for far more premium savings, but they had no idea. By starting year-end risk reviews and assessing existing policies with Founder Shield, though, they were able to improve cost position while maintaining coverage and have a 40% reduction in annual spending.

Also, the MaxPRO case proved that, instead of purchasing policies onesie-twosie, opting for combined insurance packages can mean more power and flexibility.

These customizable packages from brokers can empower companies to continue expanding since they have an extra budget for research, design, and development.

2. Think Beyond Claims

Insurance providers do more than just pay out claims: They can also provide valuable services, such as risk management workshops relevant to your industry. This encourages leaders to proactively manage risk and potentially reduce future claims. For example, we recently partnered with Forecastr in August 2023 for a live event titled “Raising Capital with Confidence,” which focused on using risk management to attract investors.

Make sure to opt for insurance providers that also supply other tools like online safety manuals, risk assessment tools, insurance term glossaries or even business owner checklists. This is a good sign as they are actively trying to help business owners identify and address potential hazards, reducing accidents or other events that could lead to claims. Some insurance providers may even have ideas for programs that reward employees for safe behavior, encouraging a culture of safety and lowering premiums.

3. Embrace the Latest Technology

The 2024 global insurance outlook study by Deloitte predicted that insurance providers using AI, automation and advanced analytics will be able to offer more personalized customer experiences and coverage.

By leveraging these technologies, businesses can unlock a range of benefits, including improved underwriting, more engaging customer experiences, and even the ability to predict and proactively address risks before they happen. This shift towards cloud-based, innovative providers empowers businesses to move away from outdated, integration-heavy mainframe systems.

Business owners can also leverage other technology by doing the following:

1. Utilizing cybersecurity tools and resources offered by insurance providers to protect a business from cyberattacks and data breaches. For example, the insurance organization AIG offers end-to-end care and alerts clients about vulnerabilities or malware within their systems.
2. Investing in telematics programs for vehicles to monitor driving patterns and incentivize safe driving, potentially lowering premiums and improving risk assessments.
3. Implementing management software to streamline the claims process, making it easier to file claims and track progress.

The latest advancements in technology have unlocked a wealth of opportunities for both insurers and their customers.

4. Build Strong Relationships

Don’t buy an insurance policy and then drop communication with your insurance provider until you have a problem. Make sure to have regular meetings to discuss policy updates, potential risks and ways to secure the best possible coverage at competitive rates. Always check to see if these meetings are available as part of an insurer’s offering before diving in head first.

Consider collaborating with your insurance provider on joint initiatives, such as safety campaigns, training programs or industry-wide events, to benefit both parties. And even ponder connecting with other businesses in your industry to share best practices and insights on maximizing the value of business insurance too.

For example, at Founder Shield, we regularly partner with those in our network to host webinars and in-person events focused on industry news, risk management and business development. We also help our partners connect with others to fuel their growth.

5. Rally Your Team ASAP

Many companies don’t share insurance information with their team and avoid hosting sessions with an insurance provider. However, there are many advantages to sharing insurance updates through newsletters, internal communication channels, or company-wide meetings, such as Ask Me Anything (AMA) sessions or quarterly webinars.

Sharing regular insurance information can improve decision-making when it comes to insurance-related activities. Hosting Q&A sessions with your insurance provider means employees can ask questions, have concerns addressed directly and make more informed decisions. Business owners can also quickly identify potential risks and develop mitigation strategies.

Let’s take the cyber insurance angle as an example. If cybersecurity becomes a company-wide responsibility and openly spoken about, each team member would embrace some sense of duty to keep the workplace safe. In turn, this keeps premiums down by fulfilling prerequisites for coverage, which means very few instances of filed claims.

Employees should also have access to a system to anonymously provide feedback on insurance programs to promote openness and honesty, capture a wide range of perspectives, and enhance insurance program effectiveness.

At the end of the year, it is always a good time for a full policy review, especially if you are considering switching insurers. These reviews make sure you are only paying for the coverage that you need. If you have multiple insurance policies, it could be time to bundle them together. Business insurance can become a risk management asset, but you need customizable packages, the latest technology, and the other factors discussed.

Schedule a 1:1 meeting with one of our Specialists to review your policies, check for coverage gaps and identify areas where creating a customized package would benefit your business. Request a review today.