In states without these standard discounts, many use “schedule rating”, which allows an underwriter to apply premium discounts for factors such as safety practices and management experience that are not otherwise reflected in the claims experience. Find out what credits are available in your state and seek to obtain the associated premium discounts.
Analyze other premium discounts
To allow insurance carriers to compete on price when rates are pre-determined, many states allow specific forms of premium discounts based on claims.
Landscapers with larger premiums may be offered dividend plans, which allow funds as high as 50% of the premium to be returned at the expiration of their policies for no employee injuries or good claims results.
Retrospective rating plans allow businesses to receive discounts for lower claims, but claims within a policy period can adjust the premium amounts and result in higher premiums. It is important to ask questions and understand what premium discount options are available to your landscaping business.
Drew Roberts is an insurance agent who specializes in providing business insurance to Florida landscapers. For more information, visit BearWise Landscapers.