June is National Safety Month, and it’s the perfect time to remember how important it is to be safe everywhere! Putting in safety steps doesn’t just keep us from getting hurt—it can also change our insurance costs and coverage! As insurance brokers, we’ve seen how being safe can make insurance cheaper or offer better protection, so here, we’ll show you how a focus on safety can reduce costs, provide better options, and generally make life better!

The Link Between Safety Measures and Insurance Costs

It’s very important to understand how safety actions and the cost of insurance are related. When insurance companies decide how much you need to pay for insurance, they look at how much risk is involved by insuring you; basically, if there’s a lot of risk, you’re going to have to pay more. This is really clear in situations where not having good safety practices increases the chance of accidents and insurance claims, like if a factory doesn’t regularly check its machines or train its employees on how to be safe, it will probably have to pay a lot for insurance because there’s a bigger chance of someone getting hurt or equipment being damaged.

By default, if you make sure to have good safety practices, this can help lower those risks. Insurance companies pay a lot of attention to whether you have effective safety plans when they’re figuring out how risky it is to insure you. Both businesses and homeowners can see their insurance costs go down if they show they care about being safe. This could mean having good emergency plans, keeping safety equipment in good shape, and following safety rules. 

In some businesses, using the latest safety technology can also help save a lot of money on insurance. This might include things like advanced fire systems, security features that use biometrics, or designing workplaces in a way that prevents injuries. Similarly, homeowners could save by using smart home tech that watches for burglaries, fires, or water leaks and can quickly get in touch with emergency services.

It’s key for people and businesses wanting to lower their insurance costs to know how much safety actions can impact these costs. By talking with their insurance companies about how important these safety actions are, they can make sure they’re paying the best possible rate, showing their dedication to a safe environment.

The Role of Insurance in Promoting Safety Standards

Because of this process, Insurance carriers play a pivotal role in the advancement and enforcement of safety standards across various domains. 

One of the primary methods by which insurance companies promote safety standards is through the provision of discounts and reduced premiums for policyholders who adopt and implement recognized safety measures. For example, drivers that implement “safe driving” technologies may see a big discount in their bill each month. This approach incentivizes policyholders to prioritize safety, knowing that such investments have a direct financial benefit in addition to protecting their assets and personnel.

Additionally, insurance companies often offer consultative services to assist policyholders in identifying potential risks and developing strategies to mitigate these dangers. This might include risk assessment evaluations, recommendations for safety equipment installations, or customized safety program development. By providing these resources, insurers help policyholders to establish and maintain high safety standards, which can lead to a safer environment for employees, customers, and the community at large.

Moreover, some insurers go beyond offering financial incentives and take an active role in safety education and awareness campaigns. They might sponsor safety workshops, publish safety tips and guidelines, or partner with safety organizations to advocate for best practices in risk management and accident prevention. These activities demonstrate insurers’ broader commitment to safety beyond the confines of policy agreements and financial transactions.

Common Safety Measures That Can Impact Your Insurance

Taking steps to be safe is smart, not just to keep people and property safe but it can also help save money on insurance. Both home and business owners can do things to lower the chance of accidents and big insurance claims, which can make insurance cheaper and better.

For people who own their homes, having good security systems can stop break-ins and damage, making it less risky for the insurance companies. Having up-to-date smoke alarms and fire extinguishers around your home can help deal with fires quickly, causing less damage, and putting in systems to detect leaks early can stop big water damage, which often costs a lot to fix. Because of this, Insurance companies might give discounts or better deal on insurance for these safety improvements.

For businesses, especially those in risky areas, having strong safety plans is a must. This means checking all the equipment regularly to stop it from breaking down and causing accidents. For those working with dangerous stuff, it’s super important to follow the rules on how to store and handle it safely. Training employees on how to stay safe shows insurance companies that a business is serious about avoiding accidents at work. Businesses with a good record of safety might get cheaper insurance because they’re seen as less risky.

Also, both homes and businesses should have updated emergency plans ready for things like natural disasters or fires. These plans not only keep people and things safe but also show insurance companies that you’re ready for risks.

Why Now is a Great Time to Review and Adjust Your Policies 

National Safety Month is a great time to check if your insurance still fits with the current standing of your home or business. As your insurance agent, I suggest looking over your insurance plans step by step to make sure they match your current needs, especially if you’ve made your place safer.

First, start by checking all the ways you keep your place safe, like making sure your security alarms, fire alarms, and smoke detectors work and are up-to-date. Then, make a list of the new things you’ve done to be safer since you last looked at your insurance. 

Next, talk to your insurance agent about these updates, and look at how these safer choices affect your risk for insurance, which can change how much you pay and what your insurance covers. Hopefully, we’ll be able to connect your efforts to benefits like lower costs or better coverage.

While you’re at it, ask your agent to help you see if there are parts of your insurance that don’t fit your life or business anymore. For example, if you’ve made your business bigger or upgraded your home, you might need different insurance. It’s also a great time to look at new insurance options that might protect you even better. Insurance companies constantly come up with new kinds of coverage, and you might find something that fits your unique needs closely.

National Safety Month is a great reminder to get ahead of the game with safety and insurance. If you’d like to take the first step, contact us at Penny Insurance, and our agents can help review your insurance to make sure it matches your needs. This summer, let’s make keeping safe and well-prepared our main goal—together