Tuesday 8 May 2012

Managing risk in a downturn

The current economic climate has taken its toll on many businesses, with survival requiring careful examination of all costs in the business: Insurance should not be exempt from this process. Insurance rates are currently static, but there will be pressure for rates to rise over the coming months.

So how does a business control spending with these pressures?

The obvious measures are those that should be considered as part of your regular renewal review.

Ensure figures on which the premium is based reflect your projected level of business activity. Consider 90% estimates if unsure. Many premiums are now ‘minimum and deposit’ – remember to budget for declarations if you do well.

Understand the cover you are paying for. If unsure Castlemead Insurance Brokers in Bristol, can review and check it reflects the needs of your business.

Understand how much each part of your Combined insurance costs by obtaining a premium split per section for :-
  • Liability
  • Material Damage
  • Business Interruption
Castlemead Insurance Brokers will go the extra mile
  • We will ‘find a way or make one’ by devising alternative methods of buying cover that can offer savings.
  • Consider higher levels of self insurance. We can help calculate how big a loss your business can sustain as a one off and in attritional damage over the year.
  • Avoid making small claims as these are always catered for in the premiums charged. Take an excess and enjoy the saving (In Insurance Premium tax alone).
  • Ask for a list of insurers that your Broker has approached this year – this should represent a spread of the market including specialist underwriters and London markets, as well as ‘household names’.
If in doubt Castlemead are here to help.