Companies looking to reduce their outgoings are weighing up the cost of insurance against the level of cover they need.

Influencing factors

There are several factors that influence the insurance buying process.

Mandatory insurances

Some covers, such as employers’ liability, are a legal necessity. The minimum is currently set at £5 million, but most insurers don’t typically offer cover for less than £10 million. To reduce cover from £10 million, down to £5 million would only save a minimal premium amount, if any at all. 

Programme review

A thorough review of existing insurance arrangements can help companies make informed decisions about what risks should be protected with insurance and which can be catered for in-house. Much depends on the likelihood that something will go wrong and the impact if it does. 

Excesses and warranties

The application of warranties or increased excesses can reduce the insurer's exposure and can result in a premium saving. The insured should be confident that any liability they incur as a result would not seriously affect their ability to trade.

Self-insurance

Large companies with the finances and resources to do so, may decide to meet the cost of some or all claims in-house.

The care sector

Insurers set premiums to reflect the risk a business represents. It is important to demonstrate:

• Robust management and health and safety procedures are in place
• Adequate training for staff
• Claims as the exception rather than the rule

The care sector is particularly vulnerable to negligence-based claims, so it is important to understand the importance of risk management. Online training, accident reporting and knowledge banks can improve business standards and reduce the likelihood of claims being made.

We encourage all businesses to work with a broker who can offer industry-specific expertise, provide proactive risk management services, and undertake a thorough insurance review to establish where legitimate and appropriate cost savings can be made. 

We provide a range of home care insurance products and proactive risk management tools that contribute towards premium savings and help businesses operate professionally and profitably.