Prohibitive insurance premiums are being blamed for the demise of many electrical companies, but there are several ways that firms can help reduce the impact on their business.

Firms have the power to reduce the draconian effect increased premiums are having on their business. In most cases, they need take only a few measures that will make them a more attractive proposition to insurers. The problem is that most do not realise this, and those who do are often not sure where to turn for advice.

The insurance industry must bear some of the blame for this: it has arguably not done enough to keep policy holders informed about the underlying reasons for the large hikes in premiums and has been accused of offering a take it or leave it service.

The root of the problem lies with Britain's increased culture of litigation, which has been spurred by the large number of claims companies that have sprung up in recent years.

It is time for a chance of attitude on both sides. Insurers must be more prepared to help their customers understand the risks, and affected companies must be prepared to invest in measures that can effectively reduce their exposure to risk.

There are a number of practices that can help reduce the insurance premium and the only real way of finding out which will have the most impact is to discuss them with your insurance company. If they cannot tell you, it may be time to look for one that will.

But do not waste too much time: commercial insurance premiums are unlikely to reduce in the short-term.

Source

Electrical and Mechanical Contractor

Postscript

Suna Bull, Allen & Allen, Middlesex