According to new research by Premium Credit, over half of small and medium-sized enterprises (SMEs) in the UK now use credit to pay for their insurance, and the amount borrowed is on the rise.
Rising insurance premiums are putting small businesses at risk of being underinsured, as they cancel or choose not to renew their policies to cut costs. Research shows that more than a quarter have cut their levels of insurance cover in the past year, and 80% of businesses are underinsured.
If you’re looking for guidance on effective steps you can take to ensure that you are covered for life’s unexpected hurdles, we are here to help.
Cut costs without cutting coverage
Make sure you know what you’re paying for!
Conduct an audit of your current insurance policies to understand what each policy covers, and whether there are any overlaps or gaps. This will allow you to identify critical risks, such as property damage or liability, and ensure these are prioritised in your coverage.
Check for deals
If you do have overlapping policies, you can cut costs by removing duplicate covers, and also check for bundles offers where insurers offer discounts when you combine multiple types of coverage under one provider.
Reduce risks
Some insurers reward businesses that prove that they are taking proactive steps to reduce risks. This could include improving fire safety measures, or implementing cybersecurity tools. Documented improvements in risk management may lead to lower premiums over time.
Explore flexible payment options
While turning to credit is increasingly common, it’s worth discussing flexible payment options with your insurance provider/s. Flexible payment agreements can help spread the cost without relying on external credit or have to cut policies.
Stay ahead of renewal dates
It pays to shop around and compare quotes well before your policy is due to renew. Gaining a good overview of offers tailored to your specific business needs can help you to be confident that you have the right coverage in place.
Let us help you
It may be tempting to reduce or cancel policies altogether, but this might expose your business to devastating losses and leave you unable to recover from an event like a fire, flood, or legal claim.
Navigating the rising cost of insurance can be challenging, but with careful planning, strategic choices, and professional advice, you can ensure your business is well-protected.
If you’re unsure where to start, reach out to our knowledgeable and friendly team who can assist you with an affordable and robust action plan.
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