Getting value for money from your insurance

It can feel as though buying business insurance is just an expensive tick box exercise.

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How do you minimise the cost of your professional insurance whilst still maintaining sufficient cover?

Running costs have increased for all businesses and we're all trying to keep costs under control. Professional Insurance premiums including Professional Indemnity, Cyber and Management Liability show no sign of falling significantly.

What options do you have?

1. Stop buying insurance?

Only two insurances are needed to comply with the law: Employers Liability and Motor. However, many services cannot operate without Professional Indemnity cover including the regulated traditional professions. Not arranging cover is therefore of limited help in most cases.

2. Find more competitive insurers

With financial pressures increasing, clients rightly expect brokers to explore more options.

Increasing volumes of new enquiries can swiftly overwhelm Insurers. They invariably prioritise existing policy holders first, and fit new enquiries in as time allows. This is why it’s so important that brokers have your renewal information as early as possible to maximise the time available for insurers to quote.

New insurers can be cheaper - check they can offer what you need

In economic downturns of the past, smaller, less secure insurers have sometimes entered the market, hoping for a windfall, and you should consider carefully the quality of insurer options being recommended.

Beyond the financial security of the insurer, it’s important to look closely at how they handle claims. This, after all, is the reason you spend so much on insurance. Will they handle claims in house or outsource this process, which might result in less support in your time of need?

3. Reconsider your limit of indemnity

For some, specific levels of minimum cover need to be purchased to meet regulatory obligations.

Under PI policies, any claim notified under a policy today, retains the level of cover in force today, even if the claim takes five or 10 years to resolve. Your limit of indemnity needs to be adequate to allow for settlement awards potentially years into the future.

4. Reconsider the level of self-insurance

Increasing the excess payable if a claim occurs can reduce your premium, although the discount available is less significant than in the past.

5. Send your proposal form in early

The one single thing all firms can do to get the insurance solution that’s right for them is to make sure that the broker has renewal data to approach insurers as early as possible before your renewal date. This will then enable them to investigate all the angles making sure you get the best bang for your buck.

Gary Horswell
Managing Director, Ntegrity

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