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Anyone in business for himself has one overriding goal when it comes to his company: maximize profits as much as possible. There are only two ways of doing this, when you boil it down to the essence. The first way is bringing in more revenue, and the second way is paying out less in expenses, and most owners strive to do both in conjunction. However, in a sluggish economy, the latter option is usually more fruitful. Since one of the biggest expenses of running a business is the cost of the insurance premiums, this is one area where substantial savings can be realized. Surprisingly, there are several ways of going about this task. Naturally, the more of them a firm is able to implement, the greater their savings will be, in most cases. Of course, the cost of business insurance varies from firm to firm. Some businesses are riskier than others by their very nature, and will consequently have to pay higher premiums. Still, all companies should be able to lower their insurance costs if they’re diligent. It may not be easy for a company to save money on their insurance premiums, but it can be done, and there are four main ways of making it happen. First is by reducing safety hazards and dangerous workplace conditions. Hopefully, of course, not too many of these exist. However, not all hazards are obvious. Therefore, it’s an excellent idea to have a safety audit done by a professional safety inspector. He or she will be able to identify dangerous conditions which may not be obvious to the owner. Taking care of these should help a businessman qualify for lower rates. Improved security is another effective means of lowering the cost of business insurance. Crime and theft are two of the biggest drivers of insurance premiums; anything that can reduce the occurrence of these two factors will go a long way toward saving money. Closed circuit TV cameras in strategic locations are very helpful along these lines. Having state of the art locks and alarm systems also go a long way in battling burglary, theft and other crimes. Being willing to bear a higher deductible is a really powerful technique for cutting business insurance costs. Insurance premiums decrease rapidly as deductibles increase, so this should be a strong consideration. Lastly, the business owner should do some comparison shopping. If his agent won’t lower his rates after making the changes outlined above, choosing another company might be a solution. Anyone who follows these four steps should be able to save a lot of money on business insurance. Gregory Brown is a freelance writer specializing in writing about business. You might enjoy reading some of his other pieces about business insurance
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