In today's competitive market, every dollar counts. When it comes to fiscally protecting your business, a high insurance premium can appear to be an unfortunate but necessary burden.
Business insurance a necessity
The aim of insurance is to cover a business for any risks, such as theft or vandalism, and an insurance premium is based on what level these risks are. For many companies, high insurance premiums can eat into capital that could be used to develop their business.
However, investing in quality security measures can help reduce the insurance premium for your business.
How can risk management affect your insurance premium?
Effective security solutions decrease the likelihood that your business will become a victim of theft. According to insurance firm Allianz, alarm systems and quality deadlocks portray your property as being less at risk of a break-in, as well as less likely that you will make a claim. This contributes to a lower premium and an overall safer environment.
The National Australia Bank reiterates the importance of reducing risk, or accepting that it will ultimately result in a high insurance premium. It also views security measures as a key way of mitigating risk to reduce the financial burden of coverage policy.
The bank specifically notes the effectiveness of visible burglar alarm systems and the importance of dealing with any telephone line defaults as soon as possible. Other precautions include:
- Ensure any visitors identify themselves and remain at reception
- Check that premises are secure at the end of the day - this could be achieved by hiring mobile patrol personnel that scout the property after hours
- Take precautionary measures against employee theft to reduce the likelihood of it occurring
Not all security solutions are equal
Because traditional alarm systems rely on telephone lines, they are not fail-safe as a first line of defence. However, a wide range of modern security solutions are available which mitigate the risks of standard alarms by incorporating off-site monitoring and video security footage.
Insurance does not have to be major financial burden for a company. Taking measures to identify and manage risks can not only reduce your premium but also facilitate a safer working environment.