1. Focus. From our experience the businesses that have owners genuinely interested in managing the risk to their business have fewer claims and benefit from more favourable premiums. The business owners/managers that aren’t as interested and often ‘dabble’ in the area tend to benefit much less.
2. Seek value over price. Some businesses are so focused on the price, they forget what they are paying for. Most businesses could put their insurances out to tender and save money tomorrow, but if your insurer doesn’t understand your business and the industry you operate in you could find you’ve bought a policy not fit for purpose, only to find out too late. A well rounded business portfolio could one day save your company and livelihood. It is important to understand what your business requires and seek the best value for money offering rather than the outright cheapest.
3. Be aware of industry evolutions. 10 / 15 years ago we were seeing very different types of claims. Theft was probably one of the most frequently received claims but society has changed and we are now seeing many more liability claims, such as parts being dropped on employees’ feet. Businesses need to be aware of these types of shift and react to it. Using the aforementioned example; employers could provide steel toe-capped boots to minimise the damage caused when a vehicle part is dropped or documented training on ‘how to lift’. Insurance protection would come in the form of an employers’ liability policy, which should protect your business but may still leave the directors and managers exposed if the employee could prove negligence on the management’s behalf. This is where a Directors and officers policy could assist.
4. Protect yourself from flooding. Flooding is the most common natural disaster in the UK and it is only getting worse over time. Even businesses in areas which have not historically experienced floods should take precautions. One basic measure every business could adopt to reduce the impact of flooding and/or burst pipes, is to always store stock on racking – not on the floor.