One of our existing customers, who has had a pub insurance policy with us for over 10 years, asked me to look around for an alternative renewal quote. I explained that we go through this process as a matter of course.
Each renewal, we will either seek alternative quotations, or through our understanding of the market, be able to confirm whether or not they will get a better alternative. In this second part, we may not even seek alternative quotes. For example, if we have a customer paying the lowest minimum premium from all our providers (£424.00 inclusive of ipt) then we know that it is not worth looking for an alternative, as they are getting the best price deal (and we are happy with the level of cover provided).
To be fair, our customer, hereinafter known as Mr Green, had said he was always happy with the cover provided and the odd free of charge (increased public liability) extensions we had arranged. But, he had been pursued by an online business insurance broker who had guaranteed to beat his premium. We had sent out our renewal,with a couple of percent more than last year on the premium (due to index-linking and increased ipt). And, they had beaten the price, we were £1,279.78 and they came in at £1,215.79. Those mathematicians out there can work out that they had gone to great lengths to work out the exact premium to charge (not). Instead, they just took 5% off his price.
He asked if we could match this. I agreed, but on one condition, I matched every aspect of the quote, not just the price. As a result, I asked for the quote to be sent through so I could review it.
When the quote came in, there were numerous cost, cover and excess differences. He pays his premium in interest free instalments, they were charging 4.9%. His excess with us was £200 and £100 for glass. Their excess was £350, all claims. Their cover insisted on their being a digital communicator intruder alarm, ours was for audible only. There were more, but you get the picture. The other company had beaten the quote, but you only get what you pay for. Was the 5% saving worth moving his cover? Thankfully he realised that it wasn’t and stayed with us.
In answer to the question posed, where is the best place to get a business insurance quote? Is it the internet, is it a local company, is it a word of mouth recommendation? It can be any of these, but usually one of the best places to go, is to your existing provider to see what they can, and have in the past, do for you.