Can I reduce my premiums?
My Employer’s Liability Insurance renewal notice has just come through and the premium has gone up giving me two weeks to renew. What can I do to shop around for a cheaper policy and how can I reduce my premiums?
Keith Stibbards of ACE European group writes:
ELI premiums are rising for businesses due to an increase in claims and costs for insurers. Also new types of claim are emerging and fewer companies are willing to offer ELI cover. To reduce the impact of rising prices on your business, select a broker and insurer who complies with the recently issued code of practice, which ensures that brokers and insurers provide renewal terms to customers at least 21 days prior to renewal. This will give you ample time to find an alternative if you are unhappy. It is also critical that you address health and safety requirements. This means having a documented policy which is regularly updated. The most important aspect of this policy is completion of comprehensive risk assessments and communicating the findings to all concerned. Once completed, where possible, working practises should be changed to reduce or eliminate the risk. Training and adequate protective equipment are also key. If you have not addressed health and safety issues and cannot produce evidence that you have a comprehensive policy in place, you will find it hard to purchase employers liability insurance reasonably. Once you have addressed this, ensure your efforts are taken into account when your premium is calculated by asking your broker to select an insurer who specifically requests health and safety information before offering terms.