Insights

How to reduce your insurance premiums

Posted by Tim Larkin on Oct 2, 2018 3:54:09 PM
Tim Larkin

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It’s easy to take out an insurance policy to cover business risks. But is it easy to reduce your premiums? Surprisingly, the answer is yes. Taking the simple step of online compliance training for staff can reduce your premiums and lower your business risk.

You’re probably paying too much for your business insurance

We’ve all filled out detailed car insurance forms so that the insurer can assess the likelihood of you having an accident. All of that information, from your age to the type of car you drive, is assessed and used to create a risk profile. The same is done for your business. However, because businesses are so different and have many more factors influencing them, some insurers often make general assumptions and lump you in with other businesses. If you have a good insurance profile, this means you’re not rewarded for it and you end up subsidising other businesses.

How to demonstrate a lower risk profile

The more you can do to show that your business is a lower risk, the lower your premiums should be. The best way to do this is by demonstrating that your business has good governance practices and that risk is managed at all levels throughout the business.

Most businesses have a set of policies and procedures tucked away in a filing cabinet or on the network which are referred to only when an issue arises. But that’s not enough to demonstrate a lower risk profile.

You need to make risk management part of the business culture so that everyone is aware of the risks to the business and understands how to combat them. The best way to do this is through training. Improperly trained employees cause accidents or make errors that end up costing you and your business money. Done poorly, training is an expensive waste of your employees’ time. Done properly it can reduce risk, raise engagement, improve employee performance and reduce insurance premiums.

Learning management platforms make it easy

A learning management platform should allow you to deliver relevant training to targeted recipients at a low cost. Allowing employees to complete the training in their own time, when they have capacity, reduces the time impact of training on your business and reduces employee fatigue. With the right reporting tools, your management team can see who is engaged and where additional effort is required.

This reporting is a valuable tool for your insurer too. If you use a system that is pre-approved by an insurer, the reporting provides the perfect mechanism to demonstrate that you have a lower risk profile and allows them to reduce the premiums.

Delta Insurance has pre-approved the Dacreed learning management platform

Delta Insurance, awarded insurance agency of the year in 2017, has partnered with Dacreed to deliver lower insurance premiums for businesses. The Optima Plus package provides SMEs with a set of tools to train and educate their staff on risk management. Completion of the training modules demonstrates a lower risk profile and you’ll be rewarded with a 10% rebate on your insurance premiums.

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Topics: Insurance premiums