George Osborne has delivered an increase in the Insurance Premium Tax to 10%.
There are various ways that Sutton Winson recommends to mitigate your premium and IPT.
Fee not Commission
Ask your broker to switch to a fee basis so that premiums are quoted NET of commission, broker fees do not attract IPT.
If your broker works on a commission basis, which is paid by the insurer, what is the incentive to reduce premiums at your next renewal? Transparency in fees will enable you to measure the value of the service you are receiving.
Managing your Risks - take action now
Risk Management will reduce risks and premiums over the medium term. Over 80% of claims made are due to motor accidents and workplace injury. If you are frequently experiencing high claims it is worth considering the following techniques to reduce claims and premium costs.
a. Motor Fleet operators
Telematics and Cabin Cameras have proven improve claims experiences by up to 50% and insurer will be prepared to offer you a significant up-front discount and help you invest in this technology.
b. Claims Defensibility Audit
If you have an accident and even when it is not your fault the onus is often on your company to disprove it was not your responsibility. £100 millions are lost to fraudulent claims and unless you have a process in place that will help you defend a claim then your insurer could be forced to pay out.
At Sutton Winson we are firm believers in transparency and working for you. Email firstname.lastname@example.org to find our how we can protect your business.
Categories: Commercial Insurance