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Your insurance renewal lands in your inbox. You open it, check the price and think: “Hang on - why has that gone up? I haven’t even made a claim!”

It’s a fair question, especially if you’re already keeping a close eye on business costs because of the current economic climate. 

It’s always a blessing and a relief to have a claim-free year, but actually your claims history is only one part of how insurers work out your premium. In this blog, we’ll help you understand some of the other factors that can affect your renewal price too….

One of the main problems in today’s world, is how much it costs to put things right when something goes wrong. Building materials, vehicle parts, replacement equipment and labour are all becoming more and more expensive. That means a claim could cost more to settle today than it would have previously, even if your business hasn’t changed.

Along the same lines, the value of items insured will also have increased, making replacing things more expensive. Some policies automatically adjust this figure to reflect changes, such as in house insurance rebuilding costs, through something called index linking. It helps your cover keep pace, but it can affect the original policy price too.

Then there are the changes in the business itself. Have you taken on another employee, moved offices, bought new equipment or increased your turnover? Whilst these are positive steps, they may change the level of cover you need and therefore can affect the price.

Insurers also consider wider claims trends and may change their pricing for particular types of business. So, unfortunately, no claims doesn’t always mean no increase. 

That’s where a conversation with a friendly, professional insurance broker, like Prizm Solutions can help. If you’re confused about any change in price, just get in touch.  We can look into what’s behind the increase, check your details and compare suitable alternatives. We’ll explain any differences in cover, excesses and exclusions, so you know what you’re getting for your money. 

So, if any insurance renewal leaves you scratching your head, please just give us a call.  You probably don’t want to cut back on cover, so get in touch with us to see whether we can find a better fit for your business and your budget. 

Prizm Solutions can help with any insurance needs, as we deal with a wide range of policies and insurers.  From Engineering Inspection Insurance to Goods In Transit Insurance, through to Private Car Insurance and Flood Insurance, we can help with many different types of business and personal insurance, to make sure you have the right policy in place just in case you ever need to call on it (which we sincerely hope you never need to!). We’d love to help you, so please get in touch.