Q. How can I reduce my company’s insurance costs?
A. It’s simple, in theory: The less risky your business seems, the less your insurance company will charge you, says Michael Turpin, an executive VP at New York City-based brokerage USI.

1. Think like your insurer. “A good risk manager first seeks to identify all risks, then eliminate and mitigate those practices that might give rise to a claim,” Turpin says. Those can include undocumented human resources practices, financially unstable vendors or the absence of compliance procedures. Catch those problems before your insurer does.

2. Hire by experience. Don’t settle for your insurance-selling brother-in-law. Find a broker or agent with expertise in your industry; they’ll know how to negotiate the best rate. An uninformed agent, Turpin says, “can translate into significantly higher premiums and gaps in coverage.”

3. Buy in bulk. Professional employer organizations like Insperity and ADP can manage the administration of your workforce -- payroll, benefits, HR and the like. But you can also buy insurance through them, and their bulk purchasing power will bring down your costs.