How CFOs Can Reduce Property Insurance Costs Without Sacrificing Coverage

In an era of rising premiums and increased loss severity, CFOs can no longer afford to treat property insurance as a static line item. Every coverage detail, deductible structure, and policy clause carries financial consequences, both in premium outlay and in post-loss recovery.

At PolicySmart, we help finance leaders uncover hidden savings by reevaluating policies through a data-driven, incentive-aligned lens. Below, we outline key strategies to reduce property insurance costs without sacrificing protection.

Rethink Deductible Structures

Evaluate Per-Occurrence vs. Per-Location Deductibles

Many mid-market companies unknowingly accept per-location deductibles in multi-site property programs. In wind-prone regions, this can result in multiple deductibles applying to the same storm event, eroding margins quickly.

CFO Tip: Shift to a per-occurrence deductible or an annual aggregate deductible to cap worst-case scenarios.

Consider Self-Insured Retentions (SIRs)

If your organization has a strong balance sheet and favorable claims history, a self-insured retention can significantly reduce annual premiums, while giving you more control over claims handling.

Get Strategic About Coverage Details

Include Consultant Fee Reimbursement in Policies

Modern property policies can include reimbursement for third-party consultants hired to support claims during a loss. This language must be explicitly included, don’t assume it’s standard.

CFO Tip: Ensure your policy permits reimbursement for your independent claims consultant. This allows your team to act quickly and recover more effectively after a loss.

Exclude Excavation and Design Costs from Builder’s Risk

When calculating your builder’s risk premium, make sure you are not overpaying. Premiums should be based on the replaceable structure, not on one-time design, excavation, or permitting costs.

Streamline and Modernize Document Management

Store Key Financial Documents Offsite or Digitally

Insurers may offer rate credits if valuable papers and accounts receivable records are duplicated and stored securely offsite or in the cloud. This not only reduces risk but also improves disaster recovery readiness.

Reevaluate Crime and Fraud Coverage

Adjust Employee Dishonesty and Cyber Crime Limits

Legacy employee dishonesty limits may not reflect modern threats like social engineering and wire fraud. These incidents are increasingly sophisticated and can trigger six- or seven-figure losses.

CFO Tip: Work with a partner who can benchmark your limits against peer organizations and recent loss data.

Align Coverage to Your Business Goals

Insurance shouldn’t just be about checking boxes, it should be an extension of your financial strategy. If you’re making capital investments, expanding into high-risk zones, or experiencing tighter margins, your property policy needs to flex with you.

Why CFOs Choose PolicySmart

At PolicySmart, we aren’t insurance brokers; we’re independent advisors who work alongside your existing broker to identify overlooked savings opportunities across your insurance portfolio.

We’re paid based on the savings we deliver, not commissions. That means no pressure to change brokers. Just unbiased guidance, smarter contracts, and data-driven results.

Want to Know If You’re Overpaying?

You don’t need a policy overhaul. You need someone who knows how to make your insurance program work harder.

Reach out to PolicySmart today to benchmark your property insurance costs. Let’s see what you could be saving.