Useful tips, hints and money saving ideas

You're in charge! Take a positive stance and a little time to familiarise yourself with insurance products.

Read your policies. Contrary to public opinion, Insurance Companies do pay claims and most problems arise over the customer not understanding the policy cover. If it's not clear - ASK!

Budget. Insurance is a dead overhead unless you need to claim. Budget for it in the same way as any other Business expense. Quantified as a simple percentage of turnover it becomes as manageable as any other item on the Profit and Loss Account.

Help Yourself! Think of a Fire or Burglar alarm as a means of protecting your business - not for saving Premium where the discounts are usually very mean. Employment contracts and a well written Health and Safety policy give management and staff a clear understanding of their responsibilities and will attract premium savings.

Tidy Up. Regularly inspect your place of business and put potential problems right. Comply with any special terms and conditions imposed by insurers, as they are there to protect both you and the Insurers from claims.

Surveys. If an Insurance Survey is required, the Surveyor is not there to interfere with your business but to help both you and the Insurer quantify the risks. Tidy up and be ready for him, as when not confronted with problems he can be a very useful source of FREE risk management advice.

Minimum Premiums. Smaller businesses are most likely to come up against this term. It is the minimum level at which an Insurer is prepared to issue a policy. This minimum level varies considerably from £200 to £2,500 (or more), so double check if you are being charged a "Minimum Premium". This also applies to combined policies where each section may have a minimum premium - thus unnecessarily increasing the cost of your policy.

Renewing your policies. Insurance Companies are notoriously slow so you need to give them plenty of time if you want the best cover and prices. Don't leave it to the last minute if you are shopping around, allow yourself a month to do the job properly. Put your renewal dates in your diary and send the details to us if you would prefer to be contacted by one of our business partners. Time is money and the more time you allow for negotiation the better chance you stand to get the best deal.

Long Term Agreements. By signing up for a three or five year period you can obtain a small premium discount. Can be a useful way of stabilising your policies and costs but note that you must check the wording carefully as penalty clauses may apply and if you want alternative quotations during the "LTA" period, most insurers won't quote until the "LTA" has expired.

Instalment Plans. Most Insurers and Intermediaries have these plans but the interest rates can vary considerably (occasionally free!). If your Intermediary offers you an in-house plan ask to compare it with the Insurer's own plan. For those with a portfolio of policies with more than one Insurance Company, one monthly direct debit to the in-house plan should be more cost efficient.

Be Positive. Insurance does not have to be a mystery, treated with distrust and derision. It is just another commodity, but don't judge it by cost alone. Look at the whole package i.e. cover, cost and service, before you buy.

Find an Intermediary who not only understands your business but can also provide and administer the policies which are relevant to your needs. Contrary to beliefs, an Insurance Broker/Intermediary won't cost you any more, but a good one will certainly earn his/her commission!

If you have any useful tips or money saving ideas that you would like to share please contact us with details.

This site only applies to insurance governed by U.K laws and regulations.
© specialperils Ltd. 2005