Given the growing uncertainty and recent slowing economic growth faced by businesses following the vote to leave the EU , this is an additional burden businesses can do without .

The increase will be added to premiums and although small in percentage terms , it could lead to bigger problems for some businesses . Businesses paying significant premiums that are struggling to keep costs down , might look to reduce their premiums to match the increase by reducing cover .

There is a risk these businesses could be underinsured as a result . Before risking this path , I would urge business owners and managers to review all the options available to them to reduce the cost of their insurance , without affecting the cover their policy provides .

Here are a few questions to steer you in the right direction :

‘ Ask your broker to sit down with you and assess every aspect of your cover to ensure you have the right level of cover . ’

Have you asked for alternative quotes ?

Loyalty is nice , but it can be taken for granted , which is why it ’ s important to challenge your insurers on occasion . Some insurers and brokers might hope you are just too busy to check you ’ re getting the best price , hoping you leave it all until the last minute when you have to accept the first renewal offer they make .

Getting alternative quotes each year can become time consuming and will sometimes prove counterproductive . Some insurers will not quote if they feel their prices are just to be used to reduce the premium of the holding insurer – there has to be a genuine chance of them winning your business .

It ’ s also a good idea to ask your broker to market your business every few years and the most professional insurance brokers routinely to confirm you are realising the best value for money insurance without you having to ask .

Have you asked your insurer for a rebate ?

If you pay significant premiums and only make a few low value claims , it is possible to agree a rebate at the end of the year , if you agree to renew your policy with your insurers for another period .

These rebates will usually vary from as low as five per cent to even as high as 15 per cent of your annual premium , which will offer substantial savings for those businesses paying high premiums and certainly more than the latest IPT rise .

Not all insurers will agree to rebates , but it ’ s worth asking the question or finding one that will , particularly if you are paying annual premiums exceeding £ 10,000 .

Have you considered increasing your policy excess ?

If you would not normally make a claim for a small amount and currently have a relatively low excess , consider increasing the policy excess . The larger excess should deliver a discount on the premium and again this will hopefully cover the likely increase following June ’ s IPT rise .

Have you explained to your insurers all the improvements made to your business ?

Over time , you will undoubtedly improve the way you work – that ’ s experience . You may have introduced new health and safety procedures , outsourced some of the work you used to undertake yourselves , or increased security .

But unless you regularly update your broker or insurer of the changes , many of which are likely to reduce risk of a claim , then it is unlikely the changes will lead to a reduction in your premium . Remember , they are there to help and it ’ s good to talk .

Are you paying for extras you don ’ t need ?

In the past , your business may have needed additional cover that is now not needed . Your premium might include cover for high stock levels held in your premises , when you now have stock delivered to site , or you no longer need cover for cash as you now only accept card payments – every little helps .

Ask your broker to sit down with you and assess every aspect of your cover to ensure you not only have the right level of cover , but you ’ re only paying for what you need .

Do you consider insurance only as an annual renewal ?

If your business pays high premiums , there are insurers that offer discounts if you agree a two or three-year policy . It ’ s still good to review your cover each year , but insurers will often guarantee rates , although any further IPT increases would still apply .

You can often negotiate additional benefits too , including interest free instalments , or a contribution to improvements you would like to make that reduce risk .

Act fast

There is no avoiding the IPT increase , but there is plenty you can do that might reduce your premium by as much as the increase , or more . Whatever you choose to do , do something and don ’ t wait till the last minute .

58 | July 2017