You should expect your insurance broker to compare different insurance companies for better insurance rates at least every three years as standard.
There are though of course times when it is a good idea to shop around.
Significant change in the size of the business
If large scale changes to the size of the business have taken place over the course of the year, this will have an impact on the insurance program.
You may see an increase in your insurance premium as you expand which an alternative insurer used to dealing with larger companies may reduce.
An improving claims history
If loss trends are improving your insurer may be prepared to remove additional charges or offer discounts, perhaps based on continued performance improvement.
If they are not prepared to negotiate, you may get a better deal elsewhere.
New operations, divisions, or subsidiaries
Insurance companies move in and out of markets all the time. If you have recently expanded into a new area, your insurer may not favour the new risk, and you may be able to get better rates elsewhere.
Often an ambitious insurer is keen to break into your new market, and you may find that they are prepared to take on your entire book at a considerable discount.
Just like energy companies, when they are looking to write new business in a particular sector, insurers will be more aggressive with their rates. Keeping a close eye on the insurance market then, can also reveal when it is a good idea to look around.
The role of your broker
Your insurance broker should consult with you on a regular basis about any changes to your business or the insurance market which might make a review profitable – not to mention ensuring that you have not ‘outgrown’ your insurance cover mid-term and unsuspectingly invalidated your policy.
How often do you or your broker compare the market for better rates?