Insurance can be quite an expensive thing for businesses. However, one cannot simply operate without it. This does not have to be that expensive, though. You can save money on premiums and get better rates if you make your commercial property appear safe. Follow these steps below, and you will surely save a lot on your insurance plan.
Get a report
The best way to reduce your property insurance costs is to have documented proof that your property is secure. After some inspection, you can secure reports and certifications that deem your property safe and thus, eliminating the need for higher premiums. The costs of these inspections are usually not that expensive, and they will also offer tips to improve your property.
One of the things that you should consider getting is an Electrical Installation Condition Report or EICR. This is something that is given after an electrical inspection. It is highly beneficial, especially for those who are renting properties. This ensures that there is no faulty or deteriorating electrical wiring. You would want to consider getting this regardless of its effect on insurance because it can prevent future fires and power shortages.
Another thing you should get is fire protection certifications. These would identify if you meet all the requirements for a fire safety audit and whether proper measures are in place in case of a fire hazard. It covers a wide range of inspections from electrical and gas to the placement of fire escapes.
Commercial property insurance is designed to cover a wide range of damages, including theft and vandalism. Thus, it means taking extra measures to ensure your security will have a huge effect on your property insurance. Even the simple act of installing monitors and security devices can reduce your insurance by as much as 20 percent.
For a lot of areas in the United States, burglary and theft are extremely common. There is not much that can be done right away unless you move to a more secure location. What you can do is install cameras and security systems to protect yourself. More than that, this will also protect your future employees by giving them extra assurance.
The level of security that needs to be invested also depends on the value of the items you are selling. It naturally follows that luxury items such as jewelry, gadgets, and expensive brands would require higher security.
Put disaster-resistant measures
Another step that can help reduce insurance costs is taking active steps to make your property disaster-proof. This can mean different things to different people because it is largely based on their location. For instance, those on the West Coast would benefit more from flood protection, while others may be more concerned about hurricanes.
In most cases, installing shatter-proof windows and upgrading your roofs are some of the first things businesses do. Others even request special designs on their roofs to prevent water and snow accumulation. They are designed to slope at a certain angle which makes water and snowfall more easily.
Certain materials are also better than others at withstanding calamities. An example of this is using steel or concrete pillars. These two can withstand the strong winds of tornadoes and the shaking of earthquakes. Although intense disasters may still leave some damage, these can still prevent major structures from completely falling apart.
Replace old structures
If you are refurbishing an old property, you need to replace all old structures in it. The main reason is that these structures are already compromised and deteriorating. There is a large possibility that they will fall apart in a few years. Some insurance agencies may want to inspect your property before offering a plan, and if they see all these deteriorating structures, they will think that you are high risk.
What you want to do first is check if the foundation is still okay. Over time, it can deteriorate from years of exposure, so you may still need to replace it if there are no major issues. Also, properties that previously experienced infestations may have underlying damages. These may worsen over time, so it is best to consult an expert on how bad the effects are.
Businesses cannot rely solely on insurance to bail them out in a crisis, so taking steps to ensure that your venture is already safe without it is important. Doing so can save you a lot of hassle and money in the future. You can also learn about other things that can protect it and prevent any unfortunate events from happening.