Owning and running a business can be expensive and time consuming at the best of times. So when things go from good to bad it can seem like the world is out to get you. With commercial insurance you can help reduce the stress and strains on you and your business if things take a turn for the worse.
The following are some top tips for getting a reduced premium while still maintaining the amount of cover you get.
NOTE: These are just some practical tips and following them does not guarantee a reduced premium.
Classify Your Business Correctly
Make sure you can classify your business correctly. For example if you own and run a small fruit and veg shop, do not classify yourself as a supermarket. This could affect your initial premium and any future premiums should a claim be made.
Repetitive or Irrelevant Coverage
Over time business change. With this change previous insurance cover that was need may now no longer apply. It is a good idea to keep an eye on what cover you need and do not need as your business grows and evolves. Sometimes you may find that you are paying for additional coverage that is already provided by different insurance you already have in place. Having this additional coverage removed can help reduce your overall premium.
Stock, Fixtures & Fittings Coverage
Are you still paying for coverage on stock/fixtures & fittings that you no longer have? It can happen that business are still paying to cover stock/fixtures & fittings that they have sold. Make sure that if you get rid of previously insured stock that you have it removed from your insurance coverage. Having it removed will mean you are not paying to insure a stock that you do not have.
Investing in good security systems, such as fire alarms and burglar alarms, will help reduce your premium. These act as deterrents which make your business less likely to be robbed. This will be considered when companies calculate your premium. This comes down to the simple ‘Lower Risk = Lower Premium’ equation.
Increase Your Excess
It is always a good idea to show that you are willing to pay for some of the insurance claim should you need to. Increasing your excess shows insurance companies that you are willing to pay out for a claim up to a certain amount, and the insurance company will pay out after that. This will also help reduce your premium.