Right now busineeses should be thinking about all areas of their cost base; insurance is no exception.

As with others areas of cost management your approach should be to eliminate-reduce-defer.

If you arrange your insurance through a broker, they should be your starting point . They can help you are to look for an alternative, more competitively priced provider, can help you to evaluate whether you have any cover that is no longe needed and can also advise on areas where you might save on your premium (typically at the expense of coverage).

Even if you don’t have a broker, periodically looking to ‘re-shop’ your insurance (asking a range of insurance companies to quote for your renewal) is good business practice and, even if decide to stick with your current insurer, gives you a sense of how competitively priced they are.

When you think you have the right provider(s), then think about coverage. Ask yourself:
– are there any assets that no longer need insurance, or reduced cover (at least in the medium term). Vehicle that you intend to park-up?
– are there any risks that won’t be needed in the short term e.g. travel insurance or reduced cover e.g. due to a reduced workforce? If part way through the policy, look for refund.
– could you live with a higher deductible for some or all of your key risks?

Reducing coverage and increasing deductibles can result in a significant reduction in premium.

One caveat here – but mindful of mandatory coverage levels. If you are insurance covers property that is subject to mortgage the lender will have minimum coverage requirements. Similarly with vehicles subject to finance. Also, you have obligations in contracts with clients and other third parties that require you to maintain certain levels of over?

Lastly, look to defer premium payments as much as possible. Typically paid your annual premium upfront; switch to quarterly/six monthly.