10 Ways To Keep Your Premium Low
Published: Wednesday, 12 December 2018
Presenting your firm in the best possible light at renewal can make a big difference to the quoted price and cover.
Here's our top tips to keep the cost of your insurance down (and still secure the cover you need):
- Start renewal early - particularly if you have claims or are in a profession that insurers perceive as higher risk for claims. This allows time for your broker to approach different insurers and explore more options. There are peak times for renewals and insurers can be more selective if they are busy.
- Check policy wordings – are there any overlaps or gaps between your cyber, D&O and PI policies? Overlaps can add complications when claims arise. Longer term, gaps in insurance may be even more costly.
- Consider consolidating your insurances - Would it be more cost effective to purchase from one insurer or through one broker? Insurers may offer discounts for multiple policies. If you ever have a claim, a single broker will streamline negotiations with insurers which should make for speedier settlement.
- Present your renewal information clearly and in a logical manner. Your broker should be able to help you to present your business in the most effective way to insurers.
- Pre-empt insurers questions/concerns. Specialist brokers should help you second guess what extra information an insurer may need. When you supply that information upfront, it helps to shorten the quotation process and to maintain Insurer interest.
- Provide any mitigating information - if you are likely to be viewed as high risk, what steps have you taken to reduce and manage that risk? CPD, staff training, cyber awareness, limited liability clauses?
- Pay the premium in one amount – Whilst some insurers offer interest free payments, most monthly payment options will be via a credit facility with interest charges.
- Raise your excess - rather like your car insurance, if you feel your firm is a low risk for a claim, opting for a higher excess can result in a lower premium (assuming that the business can afford to pay the excess if there was a claim).
- Avoid policy lapses and late renewals – Allowing your cover to expire without renewing is seen by Insurers as an indication of a lack of planning and is considered a weakness. Last minute renewals are pressured and rarely produce the best terms. If you are likely to be late renewing, advise your broker and insurer in good time, they will usually be able to offer an extension. It is not wise to let your cover lapse and then to ask for a policy to be backdated.
- Consider the level of cover you need carefully – does your work mean that you might receive multiple claims arising from a single cause? If so, Insurers will typically treat all claims received as one – could your policy limit cope with this? Higher levels of cover may be negotiable.