Cheap commercial insurance - top tips to getting a good price and cover
Given the financial problems of the past few years
, anyone who is in business are now looking a lot more closely at the premiums they pay for their business insurance.Traditionally, if a renewal was within 5%, up or down, of the previous year the majority of businesses were more than happy to continue the commercial insurance cover. But, with businesses having to, out of necessity, look at every item of cost, their annual insurance bill is coming under increased scrutiny.
The commercial insurance industry has spent years and years under pricing, charging too little to customers in the hope of making up shortfalls in investment income. This investment income could add 10-15% to an insurers income, which could be used to offer prices less than competitors.
Nowadays though, the investment income is less and the claims costs are increasing. As a result the under-pricing has had to stop. We always see this in motor insurance first. Costs have rocketed for younder drivers, particularly since Quinn Insurance got into financial difficulties and had to stop trading in the UK.
This is now starting to spill over inot the commercial insurance arena. Insurers that were happy to offer an annula premium of 600 for a risk are now saying that the renewal has to 800. Increases of 15-25% are not unheard of; particularly for the "leisure" trades ie pubs, hotels, restaurants and take-aways. This is a problem as these are some of the industries that have been hardest hit because of the recession.
We are seeing insurers becoming tougher and touhger on pricing, even for risks that have been claims free for years. This does not mean that there is not an answer though. If you have found yourself in the un-enviable position of having a significanlty increased renewal, have no fear as help is at hand.
There are a few tips to getting you a better or equivalent deal.
The first one is to set aside some time. Not everyone wants to spend time on their business insurance. It can be confusing, time consuming or even boring to get alternatives. But, set aside at least an hour of your time, on your quietest day of the week.
Secondly, get all of your papers together for the past few years. The more paperwork you have, the more this will help.
Thirdly, speak to an independent business insurance broker. Do not go to a website that does not offer you the chance to discuss your cover. Whilst these sites that compare business insurance may look good, because of the prices, what they do not make clear is that there are sometimes big differences in cover and excesses.
Get a broker that you can speak to, either face to face or over the phone. Go through all of your documentation and, whilst we cannot guarantee it, in 80% of cases they should be able to offer you a better deal (price wise) and better cover.
Cheap commercial insurance - top tips to getting a good price and cover
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