Most businesses purchase a range of insurance products to protect their business. These include motor, employers liability and public liability insurance. If, like many, you are seeing the costs of business insurance increasing, you are probably thinking about ways that you can control your expenditure on premiums and other related costs.
Cutting costs through self insurance
One approach you might be considering is to increase the percentage of risk you self insure and handle claims arising from this "excess" through your own staff and systems.
For illustration purposes only, using the traditional insurance route, you may pay a premium of £500,000 for all motor claims up to £1 million. Under the self insurance route, you may self insure for the first £100,000 of any claim, and pay a premium of only £200,000.
The self insurance route has three key advantages:
- restrains cost of premiums;
- provides effective cover from catastrophic claims; and
- provides you with greater flexibility in handling lower value claims.
Cutting legal costs
Solicitors are not always needed in insurance cases but sometimes legal action is required. Traditionally companies instruct the solicitors acting on behalf of their insurers. However, there can be more value in having claims dealt with by your regional business solicitors - you should expect a more personalised service including a responsive service that is in tune with your business approach and, crucially, one which will deliver you better value for money.
Our experienced and specialised team has a huge amount of experience of working with brokers and loss adjusters and can work with you within your existing framework where appropriate. We have the flexibility to offer a range of funding options. You will know exactly how and what you are being charged before any work is commenced.
The Team is an active member of the Forum of Insurance Lawyers