Savings Plan

43. Save by association. When looking for insurance, check with your trade association. Many associations offer competitive group insurance.

44. Shop around. At the end of each insurance policy period, review your business's needs and get several bids before renewing your policy.

45. Be prepared. Buying appropriate insurance upfront saves money in the long run, says Jeanne Salvatore of the Insurance Information Institute, a nonprofit organization in New York City. Consider what situations would be catastrophic to your business and protect yourself with adequate insurance. "Disaster recovery," says Salvatore, "is one area where business owners shouldn't scrimp."

46. Make a foul-weather friend. By arranging for an alternative place to run your business in case of a major disaster, you may be able to save on business interruption insurance, advises the Insurance Information Institute. For instance, you could arrange with a firm in the same industry to use their facilities in case of damage, and vice versa.

47. Check up on your medical insurance. Before choosing a medical insurance carrier, ask for information on past claims and the loss ratio of paid claims to premiums, advises the Council of Better Business Bureaus in Arlington, Virginia.

48. Raise your deductible. Raising the deductible on your insurance usually lowers your premiums. Even if you end up having to pay the deductible, it's likely to be less than the amount you save.

49. Make an adjustment. It often pays to adjust your health insurance stop-loss amount so that you pay a higher percentage, capped at a lower amount. Though in a worst-case scenario you could end up with more out-of-pocket expenses, your premiums will be lower.

50. Review your rates. "Often, business owners are classified for workers' compensation insurance under the wrong rate by their insurance company," says Gimba. "As a result, you may not be getting the proper discount."

51. Have employees chip in for health care. Giving employees more "ownership" of health benefits increases their appreciation of your health-care offerings and takes some of the costs off your hands.

52. Don't leave well enough alone. Sponsoring a wellness program for your employees can cut your health-claim and insurance costs. Promote a bike-to-work week or publish an employee newsletter of health tips, for example.

53. Offer perks. Often, it's the little things that make employees happy-and they don't have to cost a bundle. Consider buying movie tickets for local theaters at a bulk discount, getting a corporate rate at your local gym, or offering flextime.

This article was originally published in the February 1997 print edition of Entrepreneur with the headline: Savings Plan.