Insurance apathy costing businesses dear
Small firms aren't shopping around for better premiums, survey claims
Almost half of small businesses don’t shop around before renewing their insurance cover, new research has claimed.
A survey by UK & Ireland Insurance Services discovered that despite spiralling premiums, 47 per cent of businesses asked hadn’t considered using a different insurance provider.
It also revealed that 39 per cent of firms routinely use local insurance brokers instead of considering brokers further afield or online providers.
James Wrynne, a director for UK & Ireland Insurance Services, claimed the statistics showed small businesses had become complacent about the need to search around for better deals.
“Clearly apathy has got the better of people,” he said. “The old chestnut that they simply don’t have time to shop around still crops up but the reality is that the economy is so healthy at the moment, businesses have become complacent.”
“Apathy and holding on to old fashioned beliefs about service is costing many businesses dear.”
Small business groups are sure to disagree with Wrynne’s comments, having protested strenuously about the lack of affordable insurance cover that has placed intense pressure on many small businesses’ finances and made searching for preferential premiums a must.
Increased employee regulations and the rise of ‘no-win-no-fee’ law firms sent premiums spiralling post-11th September, and sparked an insurance crisis that has hit small businesses the hardest. Research has suggested up to 200,000 companies operated illegally without employers’ liability insurance in 2003.