If you have received a business insurance renewal quote, from your existing broker or insurer, you may find that there has been an increase in you premium, for 2010. It is not happening across the board, but most insurers are slowly starting to realise that they have spent a few years under-pricing many products. As a result the claims costs have been increasing at a higher percentage than the premiums.
If you have had an increase in excess of 5%, and you have been claims free for at least three years, now may be the time to look around for an alternative.
But, when you are looking around for a “better” quote, what exactly does this mean? Better in cover, service or price? Or, hopefully all three?
As a company that is involved in commercial insurance and nothing else, we can confidently say that price is the main factor upon which products are sold. Our (as an industry) job, is to help the purchasing customers find not only a product with a fair price, but one that offers similar, or better, cover.
We all know that you only get what you pay for. If something appears to be a bargain, there is usually reason for this. When it is a physical product, you can usually tell, when it falls apart or breaks. As far as a policy is concerned, you can only tell when you have a claim, and then it is far too late.
Cheaper premiums are out there, but you need to be cautious about the cover provided. The best way to sort the good from the bad, is to let someone else do it for you. If a broker recommends a cheaper product, and does not clarify if there are more onerous terms and/or conditions, then you can complain at a later date.