How to… save on insurance premiums

20 June 2014
How to… save on insurance premiums

Make sure you're paying for the right sort of cover for your business.

With ongoing price rises for hospitality operators on essential commodities, such as food and energy, it has never been more important to ensure you are securing the best deals for your business.

Insurance premiums tend to be one of the first expenses that are identified for a review, especially as it can be hard to see the value of your insurance if you are in the fortunate position of not having had to make a claim.

The best way to find a good insurance deal is to work in partnership with an insurance broker. Look for a broker who works with you to form a genuine partnership, offering honest, expert advice and investing the necessary time in understanding your business to ensure your money is being well spent.

Martin Camp, Lark Insurance.
Lark Insurance is a Business Partner of the Buell Group

Risk Management

The better your operational procedures, the more comfortable you insurers will feel. If you are able to demonstrate you have procedures that help to control business risk, this will be taken into account by insurers in the premium they apply.

Select an insurance broker
with an in-house risk management division. They will be able to offer assistance, either with reviewing your current arrangements or in developing bespoke risk management procedures.

Claims management
Your premium will be affected if you make an insurance claim. However, there are ways to manage these claims to ensure premiums are not increased unnecessarily and that insurers don't have a knee-jerk reaction when assessing your business.

Choose an insurance broker with an in-house claims team who will work with you to produce claims reports and advise on how to introduce remedial measures. This will help the insurer understand what has happened as well as the likelihood of such incidents reoccurring.

Get the right cover
All too often, there could be sections of your policy that are not being insured on the right basis. Make sure your insurance broker carries out regular reviews to ensure you are buying the right cover and that they truly understand your business and any areas where you might be over-exposed to risk.

Business interruption can be a key area where many clients are either hugely under- or over-insured or not insured on the right basis. The best brokers will offer guidance to help you understand what you should be buying. This can not only reduce premiums, but also ensure the cover is sufficient in the event of a claim.

Check your conditions
Across the market insurers are trying to find new ways to further reduce premiums. All too often this takes the form of embedding lots of onerous conditions and warranties within the policy wording. Ideally, your broker should work with insurers who don't include such conditions, or at the least make you aware of them and negotiate with the insurer as required.

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