VET News

Why You Should Renew Your Insurance or Reinsure in the Next 60 Days if You Can?

Changes to underwriting lead to a price rise

Changes are afoot in the insurance underwriting industry. For a few years, the pool of insurance underwriters – the financial backers of your insurance policy – has been shrinking.

Now, partly due to the shrinkage and partly due to insurers being a little more risk averse, underwriters are asking to be paid more to take on your risks. This means that prices are rising, and will rise more sharply in the next couple of months.

I have seen a policy go from $500 to $5000 but typical increases will be around 15% or a bit more.

Why renew or reinsure now?

Many insurers rely on you renewing automatically without getting other quotes. Even those who do shop around don’t bother changing policies until there is a significant price difference. Essentially, your insurer is hoping you won’t notice, or won’t care enough to change.

The increased costs for underwriting are due to come into place through August and September so you have a narrow window of opportunity to take advantage of current prices and pay for next-year’s insurance at this year’s prices.

How can I renew early?

First, check the expiry date of your policy – and this applies to all your policies, not just business insurance. If your policy falls due for renewal in the next couple of months, contact your insurance company and ask to renew now, with the renewal to commence on the renewal date.

What if my insurer says no?

If your insurer says no, get some quotes for a new policy. Many insurers will give you a good price on a new policy, knowing that once you are aboard, you are likely to just automatically renew.

Call your insurer with the quote and ask them to match it. If they do, you have saved money and haven’t had to change insurers. If they don’t, walk. Your new policy will start at the lower premium so any price increase in future will be calculated on that lower premium. And you can always get another quote at renewal time and do it all again.

Get a quote from EnviroSure for your PI and PL business insurance

Your business insurer is just like any other insurer – hoping you will renew without checking prices or bothering to change.

Show them you care by getting another quote.

You can get an instant quote from EnviroSure and ask your current PI or PL business insurer to match it. If your current insurer won’t match it, come to us. We know that once here, you will stay here, because we have the same low premiums for renewals as for new business.

Anthony Saunders is the principal of EnviroSure Insurance, a specialist Public Liability and Professional Indemnity insurance provider for small businesses and sole traders involved in accreditation, measurement, audit, assessment and associated consulting and training.

Date posted Aug 5, 2021