Lower Your Commercial Insurance Costs With Improved Loss Prevention Strategies

When it comes to loss prevention, it pays for retail owners to take this matter seriously. On the one hand, addressing this critical issue can help you prevent product loss, but it can also help you reduce your commercial insurance costs. Insurance is a critical component of protecting your business, but there is no reason to pay more for this protection than you have to. If you are the owner of a retail store, learn why loss prevention is so important. 

Risk Assessment

When a potential subscriber submits an application for commercial coverage, the insurance company will request information from the applicant about every element of their business, including any incidences of theft. The greater the number of thefts, including employee theft, to a business, the greater their risk, and, in turn, the more costly their insurance coverage. 

Keep in mind; insurance companies sometimes can also search these records on their own through public records and past insurance claims. So, even when someone tries to submit false information, these records can still be accessible. It is best to tell the truth to prevent denied coverage or a policy cancellation for false statements. 

Projected Policy Costs

Pay attention to your loss-prevention strategy to help better manage your projected policy costs. One important factor that is sometimes overlooked is that a history of break-ins or employee theft may not necessarily make your policy increase. 

It is important to understand that if an assessment of your business reveals your retail business is not in a position to deter these types of activities, this scenario can impact the projected cost of your policy for years to come, even if you go without incidence. So it's a good idea to work to protect your business. 

Security Enhancement

A focus on loss prevention for your business can not only help prevent the cost of your insurance, but it can also help lower its cost. Whether it is increasing the number of employees that you have covering the floor, upgrading your security system, installing additional cameras, or implementing background checks for employees, all of these measures serve as a security enhancement.

Insurance companies see these measures as a positive step that protects your business and ultimately minimizes your risk. As a result, you have the opportunity to lower your costs.

Remember that it is a win-win for you as a business owner. Make sure you take this matter seriously and do not hesitate to speak with your insurance agent about what changes you can make to help keep your coverage as low as possible. Reach out to an agent to learn more about commercial insurance