Hawaiʻi is a paradise destination for tourists, but for the businesses and satellites that operate on the islands, there is the added reality of issues that are found in most other areas. Hawaiʻi also sees additional risks that require high business insurance premiums; many of which impact the ROI of the local business operations.
Businesses that go without general liability, workers’ compensation, or commercial property insurance not only leave their employees unprotected, they risk complicated legal liabilities.
Businesses need comprehensive business insurance solutions with premiums that match their workflows and goals. If you operate or plan to operate a business in Hawaiʻi, here are some updated strategies and savings tips to lower your business insurance premiums and protect your valuable company assets.
Tip #1: Raise Your Policy’s Deductible
This is a logical tactic for lowering business insurance premiums (or any insurance policy) since insurers balance high premiums with low deductibles and vice versa. The balance that is right for your business depends on your needs.
For example, businesses that frequently file claims on their policies should prioritize a low deductible to reduce recurring costs and get a higher payout from the insurer. Conversely, businesses that expect to use their policy infrequently should prioritize low premiums by accepting a high deductible.
Tip #2: Bundle Your Business Insurance
Just as homeowners can save on their premiums by bundling auto and home policies, businesses can lower their premiums by combining auto, property, injury, or general liability policies. Buying multiple policies from the same insurer can help businesses save on premiums and streamline their policy management.
Tip #3: Improve Your Credit Score
The policyholder’s credit score factors into the premiums offered by insurers, impacting their ability to negotiate lower premiums. To improve your business’s credit score, maintain financial responsibility in your business’s accounting and spending. This includes making sure debts to lenders and suppliers are paid on time and credit cards are paid off.
Note that all accounts in a business’s collection, not just the account of the primary policyholder, can impact the business’s credit score in the eyes of insurers. This is true even when those accounts are not reported to the Credit Bureau.
Tip #4: Mitigate Risk
As in other locations around the world, businesses in Hawaiʻi also confront many risks to their personnel, equipment, data repositories, and ROI. Insurers may offer risk prevention and control services, including anti-theft procedures and training for human resources departments.
The secret is that insurers want their business clients to be safe and mitigate unnecessary risks since less risk for the business means fewer claims for them. Some insurers even offer lower premiums to their clients for following their risk control recommendations.
Maintaining compliant HR processes, deploying updated safety training procedures, and employing modern data security protocols all help businesses negotiate lower premiums with their insurers by proving that they are reliable investments.
Tip #5: Improve Safety Procedures
In addition to the insurer’s recommendations for improving security and safety protocols, businesses in Hawaiʻi should take a proactive approach to making their productions more compliant. Insurers inspect businesses as part of their onboarding process to determine the premiums they are willing to offer.
Safety features such as security alarms, cybersecurity solutions, fire alarms, on-site surveillance systems, sprinklers, and more can lower premiums by reducing the chance of the business needing to file a claim.
Tip #6: Pay Upfront
By paying for their premiums upfront, businesses in Hawaiʻi can often get discounts on their policies with certain insurers. Paying the plan’s entire premium communicates to the insurer that the business is reliable and conscientious. As a result, they may offer lower premiums.
Tip #8: Re-Evaluate Coverage
Businesses should review their insurance premiums each year to make sure their protections match their current operational needs. Especially if your business has recently upscaled, downsized, hired more personnel, or changed its operational procedures, you should review your current plan. This will ensure your business has the protection it needs without paying for policy features that no longer apply.
Tip #9: Consult a Professional Provider
Ultimately, businesses should be realistic about their coverage options and self-aware of their business’s security and operational needs. The right professional agency can help businesses assess what risks are known to their industry, what risks are relevant based on specific location in Hawaiʻi, and achieve premiums that make sense in their situation without sacrificing coverage.
Lower Your Business Premiums With Atlas Insurance Agency
A lower business premium can give a business in Hawaiʻi an advantage in competitive industries. By optimizing security and safety features, improving their financial status, and more, businesses can negotiate better rates with their insurers and stay ahead of their competition.
At Atlas Insurance, we have served businesses in Hawaiʻi for over 95 years. Our team of professionals leverages global resources to help clients negotiate their premiums and get the coverage they need to stay competitive in their fields. However, our focus is and always has been on Hawaiʻi – its people, its businesses, and their journey.
Contact us today to learn how our comprehensive insurance, risk management, claims management, and other services can help you stay covered even in times of change.