The Relationship between Effective Waste Management and Insurance Premiums

Truth be told, the insurance premiums you’re quoted to have to eventually pay for your coverage are related to just about every little detail of how you manage your finances, many of which details aren’t as obvious as one might think they’d be. Not to say that personal insurance is of less importance, but when it comes to getting coverage for a business, company or any other organisation engaged in commercial activity, insurance gets a whole lot more serious because of the sheer numbers involved with regards to the costs.

As a business owner or perhaps even a project manager, you’ll have to dissect each aspect of the operation of your business in order to formulate an individual link between that isolated aspect and the cost of your insurance. That way when you bring everything back together again you’ll inevitably be demonstrating a certain type of financial savvy which insurance services providers count in your favour and thereby reduce the premiums you’ll ultimately have to pay. It’s all about risk, a lot of which rick is of a financial nature.

Zoning in on the construction industry as a case in point, one of these relationships you would isolate is that of waste management and its understated but significant impact on your bottom line, on your credibility (effective waste management is somewhat of a standard litmus test for credibility and compliance), and on your ability to assess risk and implement effective strategies for risk management.

Case Study: The benefits of more effective waste management

So it goes a bit deeper than just looking at waste management as a single unit, with one of the many moving parts of what can be said to be effective waste management being that of segregating your waste. It may seem like a small, insignificant and seemingly unrelated resolution to take for a construction company seeking to reduce their insurance premiums, but there is indeed a relationship which we’ll explore right now. In the end, it costs money to comply with all the regulations governing the waste management practices of organisations such as a construction contractor, so all roads lead to reduced costs, with compliance forming just part of the process.

If you have to spend a lot more money on the expenses associated with disposing of waste material in a landfill for instance, when you could have saved a lot of money instead by reusing and recycling, this only eats into your bottom line and ultimately poses a greater insurance risk, giving insurers no choice but to quote you higher premiums.

To further break it down into its elements however, effective waste management through segregation entails making use of skips and containers (having a waste removal company coming in and first having to pick the waste up off the ground costs more than them simply having to load up the skips), having a trained and monitored on-site team and making use of the services of experts to make sure things work more efficiently.

The saved costs thereof look good in the books of the insurers as there’s an operational procedure associated with your business which poses less of a risk and so the premiums in turn get reduced.

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