Keeping Costs Down

Insurance is not an inconsiderable expense. While every effort should be made to keep costs down, the business should be wary of false economies. Apart from seeking best buys, savings can be made in the following ways:-

• Maintain a good claims record by improving security. Some insurers may offer a no-claims discount.
• Do not insure risks that you do not face. For example, an accountancy practice doesn't need Goods In Transit Insurance.
• Don't under-insure. This is a genuine false economy because your claims will be scaled down proportionately.
• Decide how much of a loss your business is prepared to bear. The higher your excess, the lower the premium.

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