In the currency economic climate, many businesses are looking to reduce cost. Tony Gibbs, Sales Director for Macbeth Insurance Brokers has some useful tips to ensure you get the best value in respect of your business insurance.
1. Use a broker – using an independent insurance broker will ensure that you get a fair representation of the market, rather than quotes from a single or limited number of insurers.
2. Review annually – make sure that your broker is reviewing your insurance on an annual basis
3. Make sure that you provide the renewal information to your broker in good time. If your turnover and wages have reduced, this should be reflected in your premium.
4. Insurers like good risk management. If possible, provide your broker with a copy of your health and safety policy document.
5. Check the financial rating of the insurer you are using. Your broker should be advising you of the insurer’s financial rating. Careful consideration should be given to using an insurer without a financial rating or based outside the UK.
6. If you are unlikely to make small claims, consider a higher excess as a way of reducing your premium.
7. If possible, have a business continuity plan in place. This is likely to reduce any business interruption claim and could qualify for a premium discount from your insurers.
8. Paying premiums on a monthly direct debit can be a means of improving cash flow.
9. Check that any sub-contractors that you are using also have the relevant insurance in place. This could be a condition of your policy as well as qualify for a reduced premium.
10. Don’t cut down on cover. Although it may be tempting to reduce cover in harder times, this could prove to be a false economy in the event of a claim.