Insurance can often be seen by business owners as an inconvenience. They know they need it but would rather spend the time or money elsewhere. However, finding the right insurance broker can often be one of the most important decisions a business makes.
The right broker can take the hassle out of finding the right cover at the right price, as well as providing expert advice to help ensure that your business is well protected from both traditional and emerging threats.
In this blog we discuss our top 5 tips for reviewing your business insurance arrangements and choosing the right broker:
1. Select a small shortlist
Businesses often believe that the more brokers they ask to provide a quote, the more likely they are to find the cheapest price; however, the opposite is often true. The old adage ‘too many cooks spoil the broth’ is very apt. By selecting a small shortlist of two or three brokers (including your existing broker) you can avoid the insurance market being flooded with many brokers approaching similar markets.
2. Present your business in the best way possible
Insurers give their best rates to businesses that can demonstrate they’re well-managed and less likely to claim. You can’t always control your claims history but there are a few things you and your broker can do to help secure the best rates. Your broker should be able to provide risk management advice to help with this.
3. Focus on service rather than price
Like many things in life, you often get what you pay for with insurance. You can always find a cheaper price with an insurer you may have never heard of, but are they likely to pay out if you need to claim? That’s not to say you can’t find a competitive price with a reliable insurer – this is when a good insurance broker is key. The tender process should give you a good feel for the level of service you can expect from a broker. It may also help to ask to talk to an existing client to get a first-hand opinion on their service.
4. Discuss your concerns
If you have any concerns about your insurance arrangements, then a review is the perfect chance to get a second opinion. Jennie says: “We often find that when we review the current arrangement for a business, there are potential issues with cover. It could be that the buildings are undervalued or that there is a condition in the current policy that the client is not aware of.”
A review can help to address these concerns and if necessary professional valuations can be arranged to ensure items are correctly valued.
5. Don’t go to market every year
Reviewing your insurance can be a rewarding exercise. However, unless there are service issues with your broker or your business has been through a lot of change, then aim to only go to market every three years or so. Don’t leave it until the last minute to obtain quotes. It’s good practice to start reviewing your insurance three or four months before renewal. This will give the broker time to approach the correct markets and negotiate the best deal.
This five-step approach should help take a more effective approach to reviewing your insurance arrangements, and free up more time to focus on running and growing your business.