Business Insurance Renewal

[zigojacko]

Year on year, would you not expect your business insurance to decrease providing you have not claimed? Or does other insurance not work in the same manner as car insurance?

Our business insurance keeps rising every year! We just let it auto-renew but every year it is more expensive. We don't do anything to compare prices and switch but if it continues to rise every year despite our loyalty and the fact we've never put in a claim then perhaps we should consider changing next year?

 

[Ian J]

Many companies rely on the fact that a large proportion of it's customers don't bother to check the market and just renew automatically. British Gas is such a beneficiary as many of it's customers are still there from the times when it had a monopoly and for decades Barclaycard dominated the credit card market as it was once the only provider and it's customers didn't bother looking around when new providers entered the market.

 

[Karimbo]

businesses are even more likely to just auto renew.

Consider the fact that administrative stuff like insurance renewal are typically handled by payables, they have very little motivation to take the time out from their daily grind to fish for quotes. It's the directors and shareholders who are directly affected so they are more inclined to reduce these costs.

If you're an owner operator you really have no excuse.

 

[TheGuru2010]

Good Afternoon Op,

I assume you don't work with a local broker? insurance can rise & fall dependant on a number of factors, however you do need a good broker when we get to renewal of our clients we look at the cost paid for the last 3 years and the changes made to the policy.

Your insurance broker should look at this & decide if they are to remarket the policy at renewal (they should tell you if they have done this as well), you do need to be on top when it comes to renewal.

Thanks

 

[Simply Business]

Hi @zigojacko, can absolutely see your point, and there are insurers that will reward you for longer periods without claims.

However, the logic is more based on 'traded longer = more experience' rather than based on not having claims - i.e. under the assumption that a worker with 5 years experience will know hazards better than someone in their first year of trading.

The reason you might find your premium rises a certain year, despite having had no claims, is based on your trade sector as a whole.

If for example, you are a plumber and your insurer has seen a 20% rise in claims amongst their plumber customer-base the previous year, your premium could well rise. It can seem unfair on you - the individual who hasn't been a part of that rise - but unfortunately that is how the risk for each individual trade is assessed.

I hope that helps to clear it up a little?

 

[jf-financial]

there are many different reasons why a premium may go up and down some down to your business but some down to the industry you're in for example - I would find a decent broker you can trust (we have one we have worked with for 10 years or so if you need a recommendation).

 

[fairdealworld]

Another vote for having a broker, a broker who is prepared to state why they are recommending continuation with one policy or change to another.

 

[Luolou]

We wouldn't be without our broker. He gives us total confidence that any issues we have will be dealt with. We are a bit of a 'one off' business so need flexibility, so if and when a situation arises we know he will support us.