How to Ensure You Are Getting the Best Deal for Your Business Insurance

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Whether you’re a member of a large company or a public body, you have a responsibility to use your financial resources wisely. You also need to ensure that you manage risks appropriately, and are properly covered in case of unforeseen circumstances.

Insurers Are Trying to Sell You a Product

The UK has the largest insurance sector in Europe and is one of the world’s top exporters of business insurance. With such a large and successful market, you may find that many of the top providers are somewhat complacent about their policies. They don’t necessarily need to provide the best deals, because they’re seen as a safe and secure insurance broker.

It’s also not necessarily, in the interest of an insurance company, to give you a fair deal, or to tell you exactly what you need to do. Combine this with the recent instability of the British economy the constant year on year increase in insurance premiums since 2015, and you find yourself with a seller’s market.

Most insurance agents are just trying to sell you a product, and many are first and foremost more concerned with their commission than ensuring that you get the best possible deal.

Consider it like this: When you’re buying a new car from a dealership, they’ll do their level best to make sure that you buy all of the extras available for the vehicle. You may not need alloys or an upgraded sound system, but the salesman will utilize all of his powers to make you believe that these additions to the final price are not only desirable but one hundred percent necessary.

No Insurance Company Is Too Big to Fail

These issues are compounded by the fact that insurance companies are not infallible, and can still be subject to financial collapse and insolvency. In the last decade or so, a number of major providers considered safe options were overwhelmed by instability in the financial markets.

When a General Insurance company becomes insolvent, it’s a huge issue for businesses that have taken out a policy with them, as the company will either terminate or disclaim these policies. It’s an even greater problem for larger companies and public bodies that aren’t protected by the Financial Services Compensation Scheme, as they have no protection from financial loss in these situations, bar assistance from the government.

Fortunately, it’s possible to monitor the Solvency Margin (alternatively referred to as the Capital Coverage Ratio or CCR) of a company, in order to keep track of an insurance company’s relative financial health, as well as the risk of future, or indeed impending, insolvency.

Choose Where You Get Your Advice from Wisely

That’s why you need to be careful with not only which insurance company you take out a policy with, and what is covered by the policy itself, but also who you use as your broker. The most cost-effective approach in the long-run is to have an independent top-level advisor, who is neither a broker nor an insurer, nor paid by either of them, to advise you on both your choice of broker and insurer. You need to ensure that this top-level advisor has a wide-reaching and well-founded knowledge of the insurance sector, as well as a comprehensive understanding of your business, and what it actually needs from an insurance policy.

That’s where Insurance Inspect Services comes in. As an independent holistic Insurance Strategy review service, they’re not beholden to any insurance company or broker. Therefore, they’re able to provide you with unbiased and carefully tailored advice on what’s right for your company, or public body. They have 20 years’ experience working with corporate entities, large companies, and public bodies such as County Councils, and have a wealth of experience in helping customers to ensure that they’re not being overcharged or over-insured.

They understand that there’s a responsibility to ensure that the money that you’ve entrusted is spent wisely. That’s why they make it their mission to find out exactly what you need so that they can identify areas in which you’re paying too much for your coverage. They’re also adept at determining exactly what areas require coverage, and where you can reduce your coverage, to ensure that every pound spent on insurance is being used efficiently and is necessary to the safety and security of your financial stability. Uniquely, they also consider your overall balance sheet and risks which you taking day-to-day (such as the risk of falling sales) which are uninsured, to fully understand your risk appetite. You could say their motto is “Just because it’s insurable, doesn’t mean that it should be insured!”: they aim to reduce your insurance premiums substantially, safely and strategically and will tell you honestly if large reductions aren’t safe for you.

Moreover, Insurance Inspect Services doesn’t shy away from the uncomfortable truth that some insurance companies do fail. That’s why they take care to ensure that the companies that they advise you to take out insurance policies are constantly monitored and assessed for any risk of insolvency. Uniquely, they also consider the security for your claimants; the recent collapse of Thomas Cook generated adverse publicity, as they had high excess policies and now cannot seemingly afford to pay the excesses, i.e. the claimants will lose out. Insurance Inspect Services can put in place claimant security solutions, so you can safely take high excesses, if they are right for you, to demonstrate that you care about your claimants.

For that reason, always ensure that you’re spending the resources you have allocated to procuring insurance in the most efficient and effective way possible by getting tailored advice from Insurance Inspect Services.

Related Post: Small Business Financing : Small Business Loan in India

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About Author

John is an actuary and owner and Director of HJC Actuarial, which he founded in 2003 and which has advised over 100 clients since its’ inception. He has worked in the insurance industry for 30 years, qualifying as an actuary in 1995 and becoming a Partner in a major global consulting firm in 2000. Since 2003 he has provided independent advice to his clients on optimal insurance program design, presentation of risks, premium negotiation with insurers, insurer solvency assessments, policy wordings, insurer selection, and insurance broker selection.

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