Business insurance companies in the UK are looking to apply increases across many of their product lines. We have been running blog items this week about the reasons for increase. The first one is index linking, the second one is increases to sums insured and the third one, which is a bit more all encompassing, is rating changes.

This is the one where we, as a business insurance broker, have the most difficulty in controlling what the insurance companies do and why they do it. One years target business can suddenly turn into another years non target trade. A lot of insurers will sit around in their strategy meetings and decide that they need to gain more premium income. Rather than  look at developing their offerings on their existing range of products, they will decide to branch out into a new range of products. For example, they may decide that  one year they are going to move into the fish and chip shop insurance market. Now, there are reasons why many types of business, such as takeaways, pubs, hotels and restaurants are not targeted by every company. The reason is that unless they are priced properly, over time they will cost money.

This is why you may have a broker that gets you a decent, competitive business insurance quote one year and then offers renewal at the existing premium plus 10, 20 or 30% or worse still, even more?

This is where you, as a business owner, have a genuine reason to look around for an alternative insurance quote. We have said before that index linking at 3% is ok but any additional amounts on top of that (with the claims caveat noted below) really are things that you should be able to question.

If you have had claims in the preceding 3 years, you should really expect there to be some sort of increase. Most commercial insurance companies allow a no or low claims ratio discount. When you have a claim this is usually reduced.

If you have had a renewal offer that is just a bit too much, then why not try Businessinsure and see what we can do for you. Email or call us on 08456 024 589.

If you are unlucky enough to have bought a new car insurance policy in the past few years, having never had this cover before, you will have been shocked at the premium level.

Over the past five, even 10 years, many insurers have been underpricing their business. This is, in the hope that they can gain as many customers as possible, so that they can then get to the critical mass point. This point is where the premiums received can pay for the claims received, leaving some room for profits. But, and it really is a big but, with the recession, claims inflation and increased competition, insurers have not done their sums quite right.

So, for this reason certain products, which have produced more claims are being hit with price increases. As you will have guessed, fish and chip shop insurance is one of those areas where, certain, companies are starting to realise that the premiums are not covering the claims.

Where this happens, they are faced with two, very simple options. Either increase the prices or pull out of the market all together. We are seeing some companies pulling out, which then makes it easier for the remainder to increase their prices as there is less competition.

Fish and chip shops are not “bad” for business insurance companies, it is just that they tend to suffer some higher than average claims costs. There are not many fish and chip shop fires that do not cost very much. But, there is help at hand. Some underwriters have chosen to always price in the middle of the ball park. They are not too cheap and not too expensive, so they get enough business in, at the right price, to continue trading.

These companies are still out there, it is just a case of finding them. You may deal through a broker and if they do not have an agency with one of these firms, then you may not get a good quote. Now is the time to look around, savings can be made, it is simply knowing where to look.

In 2010, most types of business insurance are starting to see renewal premiums on the increase. Over the last couple of years we have seen motor rates (prices) increasing almost across the board.

We are now staring to see this upwards pressure on pricing (from insurers) across most types of products. But, because insurer A is increasing its prices, this does not mean that you cannot look around and find a better price from insurer B, C or D.

It has never been easier for you to get an alternative price. A combination of Internet and telesales means that you can access a broker almost anywhere in the country who will be able to get you a better price.

You need to be wary though of prices that seem incredibly cheap compared to your existing offer. Sometimes, depending on the product, this may be because you have been paying over the odds for the past few years, or your insurer/broker has been complacent and has not looked around enough at renewal for alternatives.

Fish and chip shop insurance is one of those product where we are starting to see insurers either pulling out of the market altogether, or they are looking for increases that are at the double digit percentage levels. If you do get a cheaper quote, please look at the excess levels. We have one insurer that is offering an excess of £100 for fixed glass, others have a standard excess of £500. You can see where we are coming from. You might save two or three hundred pounds at renewal, but have one smashed shop window and all the savings go out the window.

Just be sensible and ensure that you take time to read through any terms and conditions of your alternative quotes.

Most business insurance companies in the UK, will have certain target trades, or types of business, which they want to underwrite. It is very difficult to find one insurer that will cover every type of business. Some may specialise in the very high risk trades, such as the oil, aviation and space industry and others may specialise in packages for shops, hotels, pubs and offices.

Certain insurers will “dip their toes” in certain trades, in the belief that they can make money out of a particular trade. For some of them, they will find after a few years that this particular area, or line, of business, is not one for them.

So what do they do? They have a choice, they can either exit the business totally, or as many of them do, they remain in the business, but increase their prices so that they can increase their profitability. Lack of profit is usually the sole reason for them exiting.

Fish and chip shop insurance is one area where many insurers are starting to realise that the profits, or lack of, is starting to cause them issues and they need to get more money in. So, instead of increases around 2 or 3% year on year, you will start to see them increasing by double digit percentages.

You do have a choice when this happens, you can either stay where you are, or you can move to a different insurer. Using a business insurance broker is the best, and only, way to find this alternative. There are still insurers out there, offering competitive prices, but it is just getting a little harder to find them, this is where a broker comes into play. They know who, out of the range of insurers, are the best to go to in any given year.