How Businesses Can Reduce Insurance Costs Before Year-End

Practical Steps That Make a Difference

December is a time for holiday celebrations and slower schedules for companies, but for HR professionals and accountants, it is also a prime time to review budgets and expenses before the calendar year closes. For many organizations, business insurance is one of the most scrutinized line items.

While commercial premiums are a necessary cost of doing business, most companies have more influence over pricing and terms than they realize.

“Businesses that plan ahead, manage risk proactively, and maintain strong documentation are the ones that consistently secure better pricing and terms,” says Kyle Dean, President & CEO of Dean & Draper. “Small steps taken today can make a big difference when renewals come around.”

Here are some of the most effective ways to reduce insurance costs before year-end.

Conduct a Year-End Risk Review and Close Open Gaps

A targeted risk review is one of the quickest and most meaningful steps a company can take to influence premium outcomes. Insurers evaluate risk based on your current exposures, not the risk profile they saw six or nine months ago.

Before the year ends:

• Revisit any operational changes that may require coverage adjustments or that could reduce premiums if they are clearly documented.
• Verify that job roles, headcount, and payroll classifications are accurate and up to date.
• Update schedules for property, equipment, and fleet assets, removing outdated or sold units that may be unnecessarily driving up premiums.
• Address outstanding safety issues or inspection findings that were flagged earlier in the year and make sure the remediation is recorded.

A cleaner, current, and well-documented risk profile signals to underwriters that your company is low-risk and well-managed, which can translate into more favorable pricing and terms at renewal.

Strengthen Safety Practices Now (Not at Renewal Time)

Underwriters look closely at safety performance and loss trends, and year-end is an ideal time to refresh procedures, so your organization enters renewal season on a strong footing. A visible, well-documented safety culture can positively influence how insurers view your risk.

Actions that make a difference:

• Deliver a year-end safety training refresher tailored to your industry and the specific exposures your teams face.
• Re-emphasize hazard reporting protocols and near-miss documentation so leadership sees issues early and can correct them before they become claims.
• Update emergency response plans and verify that all employees understand their roles during drills, severe weather, and other potential events.
• Repair worn equipment, replace outdated PPE, and address facility maintenance items that could contribute to avoidable injuries or property claims.

“Don’t wait for a claim to expose a weakness,” Dean notes. “Intentional safety programs are one of the most reliable ways to reduce long-term premium costs.”

Review Claims Activity and Resolve Issues 

Loss runs (reports that show your claims history over a specified period) often “freeze” 60–90 days before renewal, which makes year-end the last opportunity to influence what underwriters see if your renewal falls in the spring or early summer.

To reduce the appearance of risk and present a more accurate picture of your operations, focus on cleaning up open files now:

• Ensure all open claims have current, accurate reserve amounts that reflect today’s best estimate of final cost.
• Work with adjusters to close claims that are ready for resolution or settlement.
• Add missing documentation, such as statements, photos, or invoice details, so the file tells a complete story.
• Flag any claims that appear to be incorrectly coded or that need clarification, and request corrections where appropriate.

Cleaner, well-documented loss runs often translate into better premium outcomes, and being proactive here can save meaningful dollars over the coming policy term.

Update Facility Upgrades Completed in 2025

Many businesses complete facility upgrades during the year but forget to report them. These improvements can materially lower premiums when insurers have them on record. Year-end is a natural checkpoint to capture these changes and connect them to your risk profile.

Before year-end, document:

• Security system enhancements such as upgraded access control, cameras, or monitored alarms.
• Fire suppression or sprinkler upgrades and related inspections.
• New roofing, structural repairs, or improved exterior materials that enhance wind, hail, or weather resistance.
• Electrical or mechanical system updates that reduce the likelihood of fire or equipment breakdown.
• Routine maintenance logs that demonstrate ongoing care and a commitment to preventing losses.

Underwriters often reward verified improvements, especially those that reduce fire, theft, or catastrophic loss exposures, with more favorable pricing and terms.

Evaluate the Fine Print of Your Commercial Policy

Many businesses set deductibles and coverage limits years ago and rarely revisit them, even as operations, assets, and risk tolerance change. Year-end is a smart time to reassess whether your current structure still makes financial sense.

Questions to consider:

• Could slightly higher deductibles meaningfully reduce premiums without straining cash flow after a loss?
• Are you over-insured in any areas because of outdated valuations or assets you no longer own?
• Are there coverages you no longer need, or that could be consolidated to simplify administration?
• Would bundling policies with a single carrier or broker create additional pricing leverage?

Year-end is also a good time to evaluate alternative risk financing options such as captives, large-deductible programs, or self-insured retentions, especially for organizations with strong balance sheets and predictable losses. Even if you do not implement changes immediately, this is the ideal moment to model scenarios and lay the groundwork for future planning.

Good Data Creates Underwriting Confidence

High-quality data is one of the most underrated tools for lowering insurance costs. Underwriters rely heavily on documentation to evaluate risk, and companies with organized, complete, and current data generally receive more competitive pricing.

Before year-end:

• Clean and centralize claims history, payroll data, driver lists, building schedules, and equipment inventories.
• Confirm COIs (Certificates of Insurance) for vendors and subcontractors are up to date.
• Ensure employee handbooks, safety manuals, and HR documentation reflect current operations.
• Compile incident logs, safety committee notes, and OSHA records into a single accessible repository.

Good data creates underwriting confidence, which can directly translate into better pricing, broader coverage options, and smoother renewal negotiation.

Ask Your Broker to Shop Early and Aggressively

The earlier a renewal is marketed, the better your chances of securing competitive terms. Waiting until just weeks before renewal compresses timelines and reduces leverage.

Before year-end:

• Inform your broker of any anticipated operational changes.
• Request a go-to-market timeline for your upcoming renewal.
• Ask for benchmarking to understand how your program compares to similar businesses.
• Ensure your broker is preparing clean, compelling submissions for underwriters.

“A strong broker partnership built on planning and proactive communication is one of the biggest factors in reducing insurance costs,” Dean emphasizes.

Prepare for Year-End Budgeting with Scenario Modeling

As you finalize next year’s budget, it’s helpful to understand how operational decisions will affect insurance costs. Your broker can model:

• Premium impact if payroll increases or decreases.
• Cost changes are tied to adjusting deductibles or limits.
• Expected renewal ranges based on market conditions.
• The long-term savings potential of safety improvements or alternative risk strategies.

Scenario modeling gives leadership clearer visibility into potential outcomes, helping allocate funds appropriately and avoid last-minute budget shocks when renewal terms arrive.

Make Year-End Work for You

Insurance costs may feel fixed, but your company can influence premiums more than you may think.

By reviewing risks, improving safety, closing claims, updating valuations, tightening documentation, and working proactively with your broker, you put yourself in the strongest position for competitive pricing and long-term cost control.

At Dean & Draper, we help businesses of all sizes approach year-end with clarity and confidence. Our team provides hands-on risk management expertise, market intelligence, and renewal planning that help reduce costs while strengthening protection.

Contact us today to learn how we can support your year-end insurance planning and help you secure the best possible outcomes for the year ahead.