Three Questions Every Manufacturer Can Ask To Save Money On Insurance

Not All Manufacturers are the Same Size

Small to medium-sized Manufacturers and Machine Shops are often overlooked by large insurance agencies that only want to focus on”big premium” accounts. At the Real Good group, we want to help the small manufacturer regardless of size.

Here are three quick tips that every manufacturer, precision tool and dye shop, and distributor can use to save on the total cost of insurance.

Ask these three questions:

Do I Have a Formal Safety Program?

We have many carriers who love manufacturers. The first question they all ask us is this: Does the insured have a formal safety program?

Why does the underwriter ask this? Having a Formal Safety Plan is imperative! The underwriter’s job is to make sure that the carrier is bringing in “good business.” A well-run business is a safe business. And Safe business is good business.

They want to know things like:

Do you train your people regularly?

Is safety a priority to you?

Do you cut corners to increase production?

Do you have a long history of doing things the right way? An updated and regularly visited safety program is the best way to show your future insurance carrier that you care about what the insurance carrier cares about… staying away from claims!

The best insurance agencies will help you take what you’re already doing, and put it together to position you as a better risk to ALL carriers. The rule of thumb is, if it isn’t in writing, it doesn’t happen.

A quick tip*

Have all your employees acknowledge the plan annually.

Then train on safety once per month to keep your program at the forefront of their minds.

Is My Agent Really Shopping My Insurance

Multiple times each year, insurance carriers look at their market exposure. Are they heavily focused on one particular geographic area? Too focused on a specific “niche” of business? Are they divested enough that in the event of a catastrophic, industry-wide event that their ability to handle the incoming claims and remain on solid financial footing remains?

Insurance carriers review their “target markets” each year. The logical question for you, as a business owner, is, “Am I in the best situation for my business?” The answer may be a resounding, yes! Finding an agent who keeps track of the industry/carrier trends is pivotal in ensuring you’re alongside the right carrier.

On the same wavelength, not all agents have experience in your industry. Make sure that they, too, understand your business to position you with the right carriers better!

Are you getting the credits you deserve?

Does your agent discuss insurance credits with you at each renewal? Were you aware that such a thing exists? Premium credits are a HUGE way to ensure that you’re getting the “credit” you deserve as a business owner. Each carrier has its own set of requirements on how a business can “qualify” for certain credits. You can get discounts for a variety of things such as:

  • Average Tenure of Employee/Low Turnover
  • Formal Safety Plan in Place
  • Safe Driving/Fleet Policy
  • Early Return to Work Plan
  • Drug-Free Workplace
  • & MANY More

If you aren’t having this discussion, then you’re potentially missing out. Click here, and let us help get what you deserve! Whether you’ve been operating for 50 years or brand new in business, we can help you with your procedures to make sure you’re doing the right things to drive your rates down.

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