Obtaining insurance cover for your small to medium (SME) sized hospitality business on terms that you can meet can be challenging, especially when the insurance market conditions are driving higher premiums and reducing availability of cover. Tackling these challenges with a business insurance broker helps you achieve the best possible outcome.
Here we share our 7 steps to gain the right cover or for renewing your business insurance. Allow time to work with your broker and be open in providing information insurers will want to see.
1. Build a strong broker relationship
Your relationship with your insurance broker and their relationship with insurance providers are critically important. Your broker should understand your business and know your specific risks in order to develop an insurance and risk management program that ensures you get value for money with the right coverage.
2. Don’t leave renewals until the last minute
Put in the time to gather information: the more time your broker and you have to work on your insurance program, the more likely you are to get a positive result. Building in lead time helps your broker to present your requirements to, and negotiate with, potential insurers.
3. Choosing the right insurer
To guide your insurer selection options you and your broker need to decide which will perform best and be the right fit, including underwriting approach, responsiveness and how they handle and respond to claims.
4. Provide information to support your risk profile
In a hard market insurers expect more underwriting information: accurate, up to date building valuations, risk surveys on your business operations and risk control processes, such as supply chain management and accounts payable and receivable.
5. Be flexible about making changes
Be prepared to work with your broker around changes to premium pricing, inclusions or exclusions, deductibles and levels of cover.
Your broker may be able to offer creative solutions for high risk businesses. Be open minded – and don’t fall into the underinsurance trap if you’re initially knocked back.
6. Securing cover on optimal market terms
How much your renewal will be affected by hard market conditions will vary depending on your risk profile, claims record, approach to risk management and your broker’s capability, but most businesses need to be prepared for premium increases.
Consider both local and offshore insurance options
If you have niche or hard to place risks it’s a plus if your broker has access to a wide pool of connections in both local and overseas insurers who may cover types of risks that aren’t available locally. At Gallagher broker our local and global footprint supports clients with this capability.
Looking for help with your business insurances?
Working closely an expert broker ahead of insurance renewal provides you with critical guidance and negotiation points to gain the optimal solution available for your business, industry and situation.
Get in touch with one of our food service and hospitality experts for advice or a free of obligation discussion about your risk management and insurance.
Consider a Gallagher broker to support your business and find out more about their insurance solutions for the hospitality industry.