How To Reduce Business Insurance Costs As Your Company Expands

If you are the owner of a growing business, your business insurance costs will grow in tandem because, as your business scales, so do your risks.

To ensure your commercial insurance evolves in tandem with changes to your company, it’s important to tailor your policy accordingly with the help of an experienced broker.

Let’s examine how you can alter your policy as your business expands and reduce the cost of your insurance in the process.

 

Are your business insurance costs too high?

As the head of a growing company, it can be difficult to find the time to examine the intricacies of your insurance policy. However, neglecting this area can be a costly mistake.

It’s in your best financial interest to comb through the ins and outs of your coverage with your broker to pinpoint areas where money can be saved, such as:

• Outdated staff records
• Overlapping policies
• Not bundling your insurance
• Generic cover not relevant to your industry

Addressing these areas and more is the first step towards reducing your business insurance costs.

 

How to reduce business insurance costs in five steps

 

Step 1. Reassess risk levels and contractual obligations

The problem:

As your business grows, the scale of risk changes. If not updated accordingly, your cover won’t reflect this.

This is particularly significant in the case of sectors like construction or consultancy, where expanding projects often require third-party involvement. In such cases, risk may be transferred contractually, but policies aren’t always revised in line with these agreements, leaving critical exposures uncovered.

The solution:

Reassess risk levels at transformative stages of expansion to evaluate real-world exposures and accurate responses. This will also help you to ensure your policy mirrors contractual obligations and responsibilities.

 

Step 2. Steer clear of broad liability or duplicate cover

The problem:

If you choose generic cover, you might insure against potential threats irrelevant to your operations, not to mention missing sector-specific risks that can leave you vulnerable to claims.

Similarly, in the case of duplicate policies, which can occur during periods of rapid expansion when multiple sites, locations, personnel or trades are involved, you may be paying twice for the same risks without realising it.

The solution:

To avoid a costly and irrelevant blanket policy, work with a broker to secure tailored, comprehensive cover that reflects the real risks of your industry.

To ensure you are not paying twice in the case of overlapping policies, conduct a full audit of your existing coverage so that certain areas can be consolidated where possible.

 

 

Step 3. Allow your policy excess to be informed by your risk profile

The problem:

Recent research based on car insurance holders found that six in ten don’t fully understand what excess is and how it can impact them. The same issue is apparent with many business owners seeking commercial insurance.

Excess refers to the amount of a claim that the policyholder must pay from their own pocket. While it can be tempting to opt for a lower excess to reduce the amount you will pay in the event of a claim, this will automatically increase your premium.

The solution:

If your business has a low risk profile with a clean claims history, or if you have strong risk controls in place, it could be a strategic move to increase your policy excess to reduce your annual costs.

 

Step 4. Frequently review your staff structures

The problem:

If your business is growing, your team framework is likely to change simultaneously.

Without regular review, your policy won’t reflect these changes, which can lead to two significant issues: overpaying for staff who no longer work for you, or missing cover for new employees and those holding remote or hybrid roles.

The solution:

Discuss and regularly review your existing employers’ liability insurance with your broker to ensure your coverage is adequate and relevant.

 

Step 5. Work with a single broker for all your business insurance needs

The problem:

In the quest for better results and more options, some business owners opt to work with multiple insurance brokers.

Not only does this approach become confusing, but fragmented advice can also hike your insurance costs. It can also lead to difficulties during the claims process when no single broker has full visibility of your risks or policy history.

The solution:

Engaging one dedicated broker with sector-specific expertise will help you to keep your insurance strategy consistent and fully aligned with your operations.

An experienced broker who understands the nuances of your industry can proactively identify risks and tailor cover to your business.

 

 

Reduce business insurance costs with the help of ERM Financial Services

At ERM Financial Services, we have over 30 years of experience advising Irish businesses across construction, retail and professional services. We bring clarity, precision and practical insight to every policy review.

When you work with us, you gain a partner who understands the nuances of your trade. We provide hands-on support with our comprehensive commercial insurance, so your insurance cover remains cost-efficient, effective and aligned with your business’s actual needs.

Contact us today to find out how you can reduce your costs without compromising on protection.