Top accountant Pauline Ho founder of Laus Consulting Services LLC in Orlando, FL, advises small business owners to take a proactive approach to managing rising insurance costs. For more information please visit https://lausconsult.com
-- Small business owners frustrated and unsure how to control rising insurance costs need to adopt a proactive approach to tackle the issue, according to Florida CPA Pauline Ho.
For more information please visit https://lausconsult.com
Ho of Laus Consulting Services, LLC, in Orlando, said insurance covers everything from property and liability to workers’ compensation and health benefits. “Insurance doesn’t have to drain your business’s resources,” she said. “You can reduce premiums by understanding what you’re paying for and tightening risk management without compromising protection.”
A common mistake by business owners is allowing insurance policies to auto-renew. As Ho noted, insurers often adjust premiums yearly based on market changes, trends or shifts in business operations. “Your business today may look very different from last year. Coverage that made sense then may now be unnecessary or overpriced.”
An annual audit with a CPA or tax professional can identify duplicated coverage, outdated policy limits, or add-ons that no longer provide value. Shopping around at time of renewal can also reveal significant savings as insurers offer competitive rates to attract new customers.
Most small businesses need several forms of insurance, including general liability, commercial liability, cyber liability, and professional liability. Choosing separate providers for each can mean missing out on discounts. “Bundling policies through a single insurer not only reduces premiums but simplifies administration,” Ho said. “Many insurers also offer additional discounts when business owners bundle insurance with existing policies.”
Insurance is ultimately priced based on risk. A safer workplace typically results in lower premiums, especially for workers’ compensation and liability insurance. Ho advised business owners to provide mandatory safety training, keep equipment well-maintained, implement clear safety procedures and track and investigate near-miss incidents.
Raising deductibles is a straightforward way to lower monthly premium costs. However, Ho cautioned that this approach must be balanced against cash-flow realities. “You need to be confident you can cover the deductible if a claim arises. A CPA can help assess whether the business has the financial cushion to manage a higher out-of-pocket cost when necessary.”
With cyber threats increasing, insurers have tightened cybersecurity requirements and raised premiums for small businesses. Ho advised implementing multi-factor authentication, regular data backups and updated antivirus and firewall protection. Small companies with strong cybersecurity protocols are typically rewarded with lower cyber liability coverage.
Workers’ compensation and property insurance are often calculated based on payroll numbers and asset values. Inaccurate or outdated data can lead to inflated premiums. “Keeping clean, updated records ensures you’re not paying for assets you no longer have or job classifications that no longer apply,” Ho said. This is an area where a CPA’s oversight can immediately identify savings.
For some small businesses, group insurance pools or captive insurance arrangements can significantly reduce costs. She recommended exploring these alternatives with a CPA or insurance specialist.
Ho concluded: “Insurance cost management is an ongoing issue. However, by taking control, regularly reviewing coverage, and improving the company’s risk profile, owners can protect their business while saving money.”
Source: http://RecommendedExperts.biz
Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814
Phone: 407-401-9768
Website: https://lausconsult.com
Release ID: 89184368
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