How to save money on your insurance premiums webinar
The major challenges facing businesses at the moment are budgets, cash flow and minimising expenditure in order to ensure that your business is still intact when the troubles have passed. We may not have all the answers but we would like to share some tips and advice on how insurance premiums can be saved without increasing your exposure.
Please watch the recording of our How to save money on your insurance premiums webinar to get insights on how you can better manage your general insurance premiums in this current environment.
- With no tourists – is it possible to reduce the cost of safari plan? Yes, we are offering reduced cover options on the Liability side as ‘no guests, little risk’. Also, if staff have been laid off or salaries cut, then consider revising wages and WIBA/Employers Liability premiums can reduce. For all Safari Plan clients, we are sending a separate guide.
- In these uncertain times is it possible to reduce the rates or payment plan or give us your thoughts on the best way forward as do not want to reduce the portfolio. As per the webinar, we have provided several simple changes that can be made. Insurers are not suggesting that rates will reduce, although we have heard, that in Tanzania, they are considering reducing minimum rates for what are called ‘silent risks’, i.e. those not currently trading. We do not know if Insurers will pass these reductions on, but it does give us some hope.
- Is JWS negotiating with insurers to get concessions/and better payments plans on premiums in consideration of the current environment? Most of our clients have very competitive rates and also the ability to pay over a period of time. We are re-affirming this with our Insurers.
- Are pandemics an insurable risk? If not how can the insurance industry help their customers manage this risk? For certain sectors, it has been, but this is very much a new development, that all industries are reeling from…including the insurance sector. Going forward, I think we will see the ‘pandemic exclusion’ appearing as standard in most policies, and it will be a few years before cover will be considered again.
- How should people think about loss of revenue cover? Loss of Revenue cover is an essential part of many business insurance portfolios, but it is rare that this cover is provided for pandemics. Please see our web site for the article on this.
- What insurances are most important at this time? Compulsory insurance is a requirement, so Liability insurance for vehicles used on the road; WIBA, is something that is vital, although not a compulsory insurance, and where you have assets, these should be covered, particularly if you have a Bank interest and borrowings.
- What are the likely impacts of the Corona Pandemic on insurance premiums with dwindling company profitability? It’s a tough one to call. Premiums will likely reduce on General insurances, but Medical insurance, I am not sure. I would expect that Insurers will ‘cut their cloth accordingly’ like many businesses, to maintain profitability, perhaps they will look at all their overheads.
- How does one inquire if their insurer of choice is financially stable? Do you ask for the financial records? It is quite difficult to obtain factual information about many local Insurers, but a close look at their audited accounts and their balance sheets will often tell you a lot. Most Insurers make their financial records public and if they are listed, then I believe they are required to publish them each year.
- Do you think business insurance will change in the future as owners will want to insure against any new pandemic? Will this be possible/feasible? I think most people would like to insure against pandemics going forwards, but I do not believe it will be possible in the mainstream of insurance.
- With general public liability, can you comment on the danger on losing retroactive cover by reducing cover levels? Tricky one to answer as, in my experience, Public and Products Liability policies do not have any retroactive dates, the policies are on a ‘claims occurred’ basis. This is the case for all JWS policies, so if you are with us, then I do not see any issue. On things like Professional Indemnity, of course, that does have a retroactive date, it is certainly a consideration. My advice would be to talk to your Insurer/Broker, advise them that there is no current trade or reduced trade, and ask for a concession on the premiums. They may not agree as a lot of PI cover is for historic events.
- Could you comment on fire insurance which is the highest cost of my insurance ,but I’ve got no guests . I am in the tourism See the answer on Question 2. I would not advise that you remove this risk as your Fire cover, also includes things such as flood, storm, lightning, etc and you cannot have these perils without Fire cover. Whilst you have no guests the chances of material damage is still there, so I would not recommend removing this cover. We are waiting to see if the market is planning to offer discounts for non-trading businesses, and will keep you informed.
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