Shops insurance massive hike in premium

[deniser]

Just got my shop insurance renewal through this morning and the premium is up 35% on last year. Not only that but they have taken away the pay by three instalments facility and replaced it with a credit agreement at an APR of 46%! We have not made any claims.

Has anyone else had a big increase?

I am fighting it of course but wonder if this has anything to do with the riots.

 

[TheGuru2010]

Just got my shop insurance renewal through this morning and the premium is up 35% on last year. Not only that but they have taken away the pay by three instalments facility and replaced it with a credit agreement at an APR of 46%! We have not made any claims.

Has anyone else had a big increase?

I am fighting it of course but wonder if this has anything to do with the riots.

Is the increase from the insurance provider or from the broker increasing there fee's?

That should be the first question & they should disclose this to you. has the business changed much over the last 12 months?

 

[deniser]

There's nothing to identify the fee. Should this not be itemised? I will ask thank you.

No changes to the business or the adjoining businesses at all.

 

[TheGuru2010]

They should disclose this to you when asked, a honest broker would normally show there fee on the policy if they feel the need to have one on there.

We do sometimes use fee's when the work involved takes more than we get paid by the insurer. We always make this clear & justify this to the insured if this happens.

 

[TheGuru2010]

There's nothing to identify the fee. Should this not be itemised? I will ask thank you.

No changes to the business or the adjoining businesses at all.

At the moment provided the business trades the same (activities, turnover,staff) we are not seeing alot of increases, certainly not the amount they quoted you.

However there are a few cheeky insurers who have tried to raise a premium without been able to advise why the increase. With these cases we usually fight these back down before offering renewal terms. After all you pay the broker for a service, they should be looking after you !

 

[deniser]

They don't even shop around, it's with the same insurer every year, because only one insurer will cover us for exports to the US and not require a monitored alarm.

 

[Banned]

They don't even shop around, it's with the same insurer every year, because only one insurer will cover us for exports to the US and not require a monitored alarm.

That's probably why, they have you as a captive market.

I'm sure you've considered it, but would you get a better quote elsewhere with the alarm monitored. I presume the cost of monitoring outweighs the cost of the extra premium.

 

[deniser]

I'm sure you've considered it, but would you get a better quote elsewhere with the alarm monitored. I presume the cost of monitoring outweighs the cost of the extra premium.

Yes and in any case the USA issue is far trickier than the alarm.

I've told them I am leaving if they don't reduce it so waiting to hear....

 

[josor]

Not simply business is it?

 

[josor]

They don't even shop around, it's with the same insurer every year, because only one insurer will cover us for exports to the US and not require a monitored alarm.

Have you tried your bank, I went with natwest to see what quote they would give, beat my renewal by just under a grand

 

[deniser]

I've tried everywhere in past years. No-one else will give cover for US sales.

 

[Doodle-Noodle]

Hmmmm...... we've also been caught out by having to sign up to some rubbish credit agreement with a company that is completely separate from the insurance company; the guy on the phone said that if we didn't pay the whole premium up front (which I don't want to do as it's quite alot and I just assumed I could spread the cost as we've always done) then "it's a new law" that we have to get credit via a finance company.
I think this is blo**y outrageous ....... if it is a new law then that's yet another obstacle being chucked at small businesses that we could, quite frankly, do without.

 

[deniser]

Interesting Doodles. We got no explanation. I'm not paying it, I will pay it upfront. 46% APR, I'm sure there are laws against that!

 

[TheGuru2010]

When did you last try to get quotes from the market with the US exposure?

Is it a high % of your turnover, What goods is it if you dont mind me asking.

​

 

[deniser]

When did you last try to get quotes from the market with the US exposure?

Is it a high % of your turnover, What goods is it if you dont mind me asking.

​

No it's only 1% with a £2m claims limit and it's clothing.

 

[TheGuru2010]

You should take another look round the market with a new broker, when did they last survey the market for this? There are many underwriters out there that will look at US exposure. We have many clients that have US exposure & the goods are more of a risk.

Do you use a national broker at the moment or a nice local broker?

 

[deniser]

You should take another look round the market with a new broker, when did they last survey the market for this? There are many underwriters out there that will look at US exposure. We have many clients that have US exposure & the goods are more of a risk.

Do you use a national broker at the moment or a nice local broker?

It's a national one although local to us.

How do I find a nice local one?

 

[TheGuru2010]

http://www.biba.org.uk/ConsumerHome.aspx - This link should help you find a local broker.

 

[Paul Baldwin]

Deniser - like the guru says there are underwriters who will happily quote for risks with US exposure. If you need a hand let me know.

Doodles of Tadley - a lot of insurance companies offer their own direct debit but service charges tend to be around 8 to 10% so most brokers tend to offer credit through Close Brothers or Premium Credit at a lower rate, and this is when the need for a credit agreement comes into play.

 

[Doodle-Noodle]

Ours is being done through Premium Credit ...... wasn't expecting to be charged for it though, we hadn't been previously.

 

[lockyer]

Premium credit and close have never been free, and it's usually 8-10%, although the apr will be higher.

As guru has said USA exposure isn't as hard as it used to be for the retail trade.

If its any use I can have a look at it for you

 

[LianneF]

we're with Allianz through a broker and pay through close premium finance and interest went up to 11%. Premium itself hasn't gone up. apparently there are only a couple of companies left who don't charge interest on commercial insurance?
Thanks
Lianne

 

[lockyer]

thats correct. It's swings and round abouts, the ones that do it free are generally more expensive.

If you need to shop around you need to compare the monthly cost, but also check how many months its over as some do it over 9, 10 or 12 months

 

[PhilWarman]

In all my years, I have only ever seen a couple of insurers doing "free" direct debit and that's normally on large premiums. As Paul, Lockyer and The Guru say, everybody charges and the reason some instalment charges have gone up is due to base lending rates from these companies increasing.

I also agree with the other guys, with such a small % of US exposure I would try a proper broker rather than one over the net etc - we all have the experience of covering a raft of different types of businesses and can actually speak to an underwriter instead of being led by a computer screen..!