Tuesday, December 23, 2014

Cutting Insurance Costs

In our current economy, many individuals and businesses are looking for ways to trim expenses. Numerous businesses wonder how they can reduce their monthly insurance premiums at the Lake of the Ozarks. There is no easy answer to this question as each insured has a uniquely complex situation. If you are considering canceling your policies or eliminating coverages, it could be the worst decision you could make. There may be other options available to you.

Ways to Lower Your Premiums

If your business receipts or payrolls are down you may be able to request that the company endorse a lower estimation of these to the policies mid-year; however you can’t just lower the payroll estimate to get a lower premium. You will need to justify the changes and you will still be audited at the end of the policy period.

Other ways of lowering premium are to take on more risk yourself verses transferring it to the insurance company. One form of this would be increasing your deductibles. You could also review your insurance schedule and decide to self-insure some of your property and delete it from the policy. Keep in mind your bank will take issue with this if you have a loan on the property. We also see many insureds with vehicle schedules that contain full coverage on autos that are over ten years old. In some cases this makes sense, but in many it does not.

Lowering your coverage is risky, so try not to do it other than as a last resort. Business owners will likely continue to see a rise in slip-and-falls, theft, employee dishonesty, and fraudulent claims. Now is the time a claim will hurt you the most and could even cause the business to struggle due to a costly uninsured claim. Don’t put your family and business at risk by dropping your much needed insurance coverage at the Lake of the Ozarks.  It could be the worst thing you could do if you were to have a loss. Talk to your agent to discuss options that best suit your situation.

Steven Naught is a Certified Insurance Counselor with the Naught-Naught Agency. He can be reached at his friendly office at 573-348-2794. For all your Lake of the Ozarks insurance needs, contact Insure the LakeYou can have peace of mind. Contact us for a FREE quote request today!

Steve Naught, CIC

3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral

T: 573-348-2794
F: 573-348-0191