Why Do My Business Insurance Premiums Rise Even When I Don’t Make a Claim?
Insurance premiums can increase for various reasons, even if you haven’t made a claim. Here are some possible reasons why your insurance premiums may have risen:
- Overall industry trends: Insurance companies regularly assess the risks they are taking and adjust their premiums accordingly. If the industry as a whole experience an increase in claims or losses, insurers may raise premiums to offset the increased risk.
- Inflation: The cost of goods and services tends to rise over time due to inflation, and insurance premiums are no exception. Insurance companies may need to adjust their premiums to account for the rising costs of repairs, medical treatment, and other expenses.
- Changes to your policy: If you have made changes to your insurance policy, such as increasing your coverage or adding additional covers, your premiums may increase to reflect the added risk.
It’s always a good idea to review your insurance policy with your broker to look around for the best coverage. Your broker may be able to find a better deal by comparing quotes from multiple insurers.
How can you reduce your business insurance policy cost?
Reducing your business insurance policy cost can help save you money, but it’s important to ensure that you have adequate coverage for your business. Here are some strategies to help lower your business insurance premiums:
- Get your broker to shop around: Compare rates from different insurers to find the best coverage at the lowest cost. Make sure to compare apples-to-apples when evaluating policies from different providers, ensuring that the coverage and deductibles are the same.
- Increase deductibles (Excess): A higher deductible means you will have to pay more out of pocket if you need to file a claim, but it can also lower your insurance premiums. Consider raising your deductible to a level you can afford to pay in case of a claim.
- Assess your risks: Work with your broker to assess your business’s risks and see if there are any areas where you can reduce your coverage or limit your exposure. This may involve installing security systems or minimising the risk of accidents or liability claims.
- Focus on safety: Creating a safety culture in your business can help lower insurance premiums over time. Ensure your employees are properly trained, and implement safety protocols and procedures to minimize the risk of accidents and other incidents.
- Review your policy regularly: It’s essential to review your insurance policy regularly to ensure that you have adequate coverage for your business. As your business changes and evolves, your insurance needs may also change, so it’s vital to ensure your coverage is current.