Where the money actually is
Business insurance overpayment is usually structural rather than a matter of shopping harder.
- Wrong class codes on workers' comp — clerical staff rated as field labour can cost several times the correct rate.
- Payroll and revenue estimates left unchanged for years, generating audit surprises in both directions.
- Separate policies that would qualify for a BOP package discount.
- Duplicate cover between a BOP, a cyber policy, and a professional liability policy.
- Higher deductibles on property, where severity is manageable.
- Risk-management credits for documented safety programmes, training, and return-to-work policies.
The experience modifier
On workers' comp, your experience modification factor multiplies the base premium. It is driven by claim frequency more than severity, so several small claims cost more than one large one. Reporting minor injuries through a managed-care arrangement rather than as lost-time claims is often the biggest available lever.
Audit season
Prepare for the annual audit rather than reacting to it. Keep certificates of insurance for every subcontractor — uninsured subs roll onto your policy and generate large additional premiums at audit.
Review your programme
Upload your business policies to PolicyPal and we identify duplicate cover, missing lines, and class codes that do not match the roles you describe.
Frequently asked
- Is a BOP always cheaper?
- Usually for eligible low-hazard businesses, but higher-hazard operations often get better terms from a tailored package policy.
- How do I lower my experience mod?
- Reduce claim frequency, implement a return-to-work programme, and challenge reserves on open claims that appear overstated.
- Can I drop cover to save money?
- Dropping workers' comp or a contractually required line exposes you to penalties and contract breach. Reduce cost structurally instead.
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