Ten Top Tips to Reduce, or at Least Control, Your Insurance Premiums

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Two things that you can influence to affect premiums are Cover (i.e. You can influence what and how much coverage you have and Claims.

You need to consider all four elements of Cover.

* Excess – The amount you will pay for each claim. This should result in a decrease in premiums. The amount of excess you need will depend on the cost of your premiums.

* Limit – The maximum amount that an insurer will pay for any claim, or for the entire year. The lower the limit, you get a lower premium. You should consider how likely you are to have a claim at that level and how detrimental it would be for your business.

* Exclusions are things that the policy doesn’t cover. Each exclusion should result in a reduction of premium. It is pointless to pay a premium for an event that is impossible in your particular circumstances. If you are only building or repairing property, and not demolishing it, there is no need to pay a premium.

* Extensions are the opposite to exclusions. These non-standard items can be added to your policy at an additional cost. Are you in need of them?

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You should consider this a savings even if it results in higher premiums. It is when you pay more for insurance than you actually need. This is where real waste occurs, and not when you make informed decisions.

Your premiums will rise if you have more claims than you can afford. Insurers will consider future claims, as well as past claims. These six tips can be useful for all types of insurance, but they are especially important for liability policies. Those that pay for damages or injuries you cause to others.

* Claims-handling system. Make sure it works for you. Everyone involved should know what their part is. This includes your insurers, specialist claim-handlers and any solicitors you use. Your staff, as well as yourself.

Keep it moving. Time is money when legal costs are involved. You must ensure that claims don’t get stuck on someone else’s desk. Delegate the task if you don’t have the time.

* Get feedback from investigators, insurers and claims handlers about the causes of the accident.

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* Be open to the future – look at all of your activities and consider where possible risks exist, even if you have not made any mistakes. It may be worthwhile to have someone else look at them, since it is easy to overlook the obvious when you don’t see it every day.

* Assess the risks and cost of each option. List the options and decide which one(s) you believe will be most effective for you. Take into consideration the cost of control measures, the potential cost of a claim, and any effects on your business.

* Do not try to make a safe world. It is impossible and would not be beneficial.

If you want to have some control over your insurance costs, it is essential that you take the time to think about all of these points and then you act on them.