Here are six tips we can offer to keep your business insurance premiums down without risking the survival of your business:
Allow a specialist broker to obtain the most suitable cover, balancing cover and cost.
Many insurance providers will offer online tools to help you estimate the cost of your business insurance coverage and enable you to compare prices. It is important however to check that each is comparable and provides you with adequate insurance that meets your needs as a business. Shopping around can take up a lot of valuable time so speaking to a specialist broker who is experienced in all forms of business insurance is a smart move. Business Insurance Brokers will have access to a number of top insurers and have built strong relationships over many years in order to obtain the most competitive premium. In addition to this they will understand your business and be experienced in getting you the correct policy to suit your business needs to ensure that you don’t go under-insured.
Supplement your cover with other types of business insurance as a package.
Many insurance brokers will also specialize in other forms of business insurance, such as business contents insurance, motor fleet insurance, business interruption, liability insurance, etc. Often if your policy can combine a number of the common types of protection then you can achieve a much lower premium than buying each of the multiple lines separately. It is important to check that all aspects of insurance that you require are covered by your one provider in this instance, as well as making sure that you are not paying for any form of business insurance that you do not need. For example, unless you are in the service industry you are unlikely to need Professional Indemnity Insurance.
Increase your deductible or excess
It goes without saying that if you choose a higher deductible then insurance companies will offer a lower premium. This is the amount that you are responsible to pay towards the cover of an accident or damage to your business and can be referred to as ‘excess.’ The higher the deductible or excess, the less an insurance company has to pay out, so the lower your premium. It is important to only increase your excess if your business is able to afford to pay this amount should any damages occur. It is also important to consider that the higher your deductible, the less likely you are to make smaller claims.
Is there a claims-free discount?
If your business has been claims-free for a number of years then you are likely to be eligible for a discount in your premiums. It is therefore a good idea to ask this upfront and know if you can receive a claims-free discount. Again, this is why it is a good idea to avoid any minor claims.
Will you gain a discount from loss-prevention programs?
It is a good idea to discuss with your broker ways in which you can reduce the risk to your business. There may be ways in which you can help reduce the risk to your business contents or premises, perhaps by introducing workplace safety programs or disaster prevention systems which can reduce the cost of your premiums in relation to your reduced risk.
Investigate group rates
There may be organizations that your business can join, or that you may already members of, that will allow you to take advantage of discounted group rates. Depending on what sector your business is in you may be a member of a number of professional organizations that offer group rates on your business insurance premiums. However, it will only be worthwhile joining such groups or organizations if they can also lead to important contacts for your business in addition to the insurance savings.
Author: Doug Kelley is Director of Bluedrop Services, where he advises on specialist, non-standard insurance with in-depth knowledge and expertise in business and liability insurance, in addition to providing business fleet insurance.