Growing your business? Here’s how to keep your insurance premiums down

The Expert Edit is a content series where we bring in specialists from our trusted Marketplace partners to share their expertise. Each article tackles key challenges faced by small business leaders, offering practical insights from industry specialists to help you navigate the world of HR with confidence.

Scalability and growth are key goals for most businesses. You are providing a solution to a problem and you want as many people to be able to access this solution as possible. You also want to grow your company and revenue as a result.

You might think that faster growth and more revenue will lead to higher insurance premiums – especially if what you do is complex, right? Not necessarily. Here’s why.

The current insurance market

Insurance markets can shift between being ‘soft’ or ‘hard’. Right now, we’re in a soft market and this can work to your advantage. But what does that mean?

In a soft insurance market, insurers are competing for your business. This market is characterised by lower premiums, more flexible terms and broader coverage options. With plenty of options available, insurers may be more willing to negotiate on price and provide more generous terms to win your business.

This is a great time to shop around, review your policies and secure better deals or improved coverage. You might find that you can lower your costs while still protecting what matters most.

It’s important, however, to stay smart. While the offers may be appealing, you must prioritise getting the right coverage for your specific needs. A low price is great, but not at the cost of inadequate protection.

A good insurance broker should provide you with a comparable option at renewal – one that’s as competitive, if not more so, than your last premium, even if your revenue has increased.

Growing revenue and insurance

Every business wants to boost its revenue, turn a profit and achieve financial success. But in today’s competitive funding landscape, staying attractive to top talent and investors often calls for bold moves.

If you’re seeing your revenue grow, that’s a great sign of stability. But what does this mean for your business insurance?

As your revenue climbs, it’s worth considering whether your policy limits should do the same.

When it comes to renewing your cover, a good broker will highlight your stability and growth, meaning that, while your revenue and limits may go up, the risk you pose could actually go down. And that should be reflected in your premium.

However, if your revenue jumps by 30% or more, your premium might change. Growth at this level usually means a higher premium, but a skilled broker will work to increase your cover in line with it, so you’re getting more bang for your buck.

What insurance should my business focus on?

There are several covers small businesses might consider, including (but not limited to):

• Employers’ liability insurance: A legal requirement for most businesses with their own staff, employers’ liability insurance is designed to provide financial cover in case an employee is injured at work. 
• Public liability cover: This is designed to cover claims made against you by members of the public for property damage and accidental bodily injury, illness, disease or even death as a result of your work.
• Professional indemnity insurance: If a third party accuses you of professional negligence, having professional indemnity insurance may help to cover any associated legal costs.
• Directors’ and officers’ insurance: D&O insurance is designed to protect company directors and senior officers if they’re personally sued for decisions they’ve made while running the business.
• Cyber insurance: This cover is designed to support businesses handle the fallout from cyberattacks and data breaches, from legal costs to getting things back up and running.
• Business equipment insurance: Designed to cover the important items you rely on to do your job, business equipment cover can include everything from everyday essentials to specialist kit.

Each type of cover seeks to protect a different area of your business from risks that you could be liable for if something were to go awry. 

Policies can be made up of just one cover, or a combination of covers, and can include human error, property and equipment, your products and intellectual property as well as your systems and data. They can also offer added protection – such as cover for accidents and illness.

Whether you’re buying your insurance online or via a broker, you’ll want to pause when you receive a quote. Before you go ahead and purchase your policy, you may want to be absolutely sure and confirm that it actually covers everything you expect it to.

Every insurance policy will contain some exclusions, so checking your policy documents will allow you to see exactly what’s covered and what isn’t.

Working with insurance brokers

Insurance brokers are there to help you. They should understand your company inside out and therefore be able to effectively negotiate on your behalf.

It’s your broker’s responsibility to make sure you’re able to get the most competitive options available, whether it’s a soft or hard market. As we’re in a buyers’ market, you should be in a position to forecast a decrease in premium spend this year when you’re renewing. 

If your broker isn’t doing this, then reach out to one who will. If you’re a CharlieHR customer, you can access insurance designed for businesses of all sizes at exclusive rates — all you need to do is visit Superscript’s page on our Marketplace. Changing brokers is much simpler than you think.