The easiest way to reduce insurance cost is to eliminate unnecessary coverages. When you cancel or delete coverage, you are assuming the risk yourself. Assuming the risk yourself is possible because either the risk is very small or remote, or the cost of the claim can be readily absorbed as a business expense. If you feel uneasy about going without coverage, how about going halfway by increasing the size of any deductible? Look back at the last 3 to 5 years. If you feel that patterns will continue, compare your anticipated premium savings with anticipated claims. If you come out ahead, increasing your deductible is prudent.

Knowing how insurance rates work is important. Fortunately, there are only two major things about insurance ratings that you need to know. First, if you qualify based on size or hazard of your operations, your premiums may be influenced, in part, by your past claims. Also, the rate, which already takes into account your chances of producing a claim, can be affected by the judgment of the insurer's underwriter. If you qualify to have your individual claim history influence your rating, ask to see the claims and amounts that went into the calculation. Many times, the amounts used are overstated because of poor communication or clerical error.