The government has warned that with the fallout from the war in Ukraine and energy prices constantly rising – inflation could be pushed to a 40-year high of 8.7% by the final 3 months of 2022. Insurers have increased the costs of insurance premiums following changes introduced to tackle the loyalty penalty, getting rid of many of the biggest discounts on the market. Research also shows that global insurance costs rose by 13% in the last quarter of 2021.
With this in mind, the business comparison experts at Bionic have put together some advice for businesses on how they can save on their insurance premiums.
Les Roberts, Content Manager at Bionic has advised the following:
1) Demonstrate that the business is well run
Insurers are more likely to charge lower premiums for businesses that are well run. It’s important that you can show evidence of this through:
- Your own risk assessments: Conducting your own risk assessments help you to recognise and control hazards in your workplace, helping you prevent possible accidents. Risk assessments also allow you to save costs by being proactive instead of reactive – something that insurers will look out for as this could potentially minimise your insurance claims.
- Quality control procedures: Not only is quality control important to maintain a certain level of quality and performance within your organisation, it also allows you to ensure that the products sent out to customers are not defective, lowering the risk of product recall. If you have a service-based business, quality control will also include the level of training of your employees in order to maintain a high quality service and reduce the risk of accidents.
- Financial accounts that are filed on time: A business who shows that they may be financially unstable is at risk of higher insurance premiums. For example, a company that declares bankruptcy may be at risk of their insurance policy being cancelled, leaving them without cover.
- Audits: Audits are important as it provides credibility to a set of financial statements and gives insurers the confidence that the business’ accounts are true and fair.
- Professional accreditations and qualifications: Ensuring that your employees are sufficiently trained and qualified for the job is important. This minimises the risk of any mistakes and accidents when it comes to handling machinery or heavy equipment. Training and personal development also shows insurers that the business is willing to invest in their employees and ensure quality control is always maintained.
2) Consider using an insurance broker
Insurance is often a difficult market to navigate without professional advice. A broker can help you select insurance cover that’s tailored to your business’ specific needs. Brokers work on your behalf and will search the market to find the right insurer for your business, saving you time and money doing it yourself.
3) Compare rates each year
It’s important to do a lot of research on insurance companies in order to ensure that your business gets the best deal. However, while price does play a part in determining your insurer and insurance policy – the most important factor to consider is getting the right cover for your business over price to ensure that you’re covered for everything you might need. Bionic compare insurance policies for businesses
4) Underinsurance
As mentioned, getting the best deal possible is important when deciding on an insurer and an insurance policy – the most crucial factor is ensuring that you are not underinsuring your business. This can significantly affect any claims that you make should your business suffer a loss.
Reducing premiums and exposing your business to future losses is a false economy that could result in your expenses being even higher to rectify the loss.
5) Make safety a priority
It’s important to stay on top of new procedures and technologies as they become available and implement those that offer the greatest benefit to your business and employees. This can also be done by training and educating your employees regarding safety practices in the workplace. It is recommended to put together your own training or bring in a third party to conduct a workshop on the new procedures.
6) Consider a comprehensive package
Combining all essential business coverage into one package can save on premiums – this is something that you can talk with your insurance company about. If that’s not possible, look at bundles that other companies offer to find out if you’d be better off switching providers.