How to Reduce the Cost of Commercial Renter's Insurance

Commercial renter's insurance provides reimbursement coverage for property improvement, covers damage that your employees may cause to the rental property and also protects your inventory and business property. Liability coverage is another section of the policy for commercial renters. If you want to reduce the cost of commercial rental insurance, there are a few things that you can do.

Things You'll Need

• Risk management program
• Accurate record of accidents
• Alarm systems
• Employee bonds

Instructions

1. Shop for coverage. All companies experience different loss ratios that affect the price of their insurance. If you shop for commercial renters insurance, you can reduce your rates considerably.

2. Pretend you're an adjuster. Walk through the business and look for potential loss of inventory, accidents waiting to happen and opportunities for break-ins. Bond employees that handle cash and get thorough background checks on others. These steps show you have concern and take action to prevent loss.

3. Develop a risk management program. Many insurance companies offer reductions in rates if there's a risk management program in place. Set up a program and document meetings, training sessions and responsibilities assigned to specific employees.

4. Keep a record of losses and accidents. If you have a documentation of all small or large losses, as well as accident-free days, you can reduce some of the liability costs for the program if your report is favorable.

5. Install state of the art alarm systems. Most companies offer a dramatic reduction in prices if you install alarm systems for both fire and theft that connect directly to the appropriate agency. The companies reduce the cost of the commercial renter's insurance because the alarms reduce the risk of a large loss.

6. Eliminate fire hazards to reduce the cost of commercial renter's insurance. A restaurant experiences an obvious exposure to fire hazards, but any business also has risk. Look for areas that have stockpiles of trash and waste and keep the office area clutter free. These are potential kindling for a fire.

7. Reduce the amount of turnover. This keeps your workman's compensation lower and shows a more stable workforce with more experience. Knowing the job eliminates some of the risks and reduces the cost of commercial renter's insurance.

Tips & Warnings

• You pay commercial renter's insurance for property on the value of the property. If you stock a smaller amount of inventory, you reduce the cost.