Get Indemnity - You Must Get New Insurance Quotes in 2021
A leading business insurance broker has urged firms and SMEs to get new insurance quotes in 2021. Get Indemnity, the digital insurance broker polled 650 SMEs and found that 68% of participants had not sought alternative insurance quotes in the past three years - and a further 32% had not applied for new quotes in the past five years.
Simon Taylor (Managing Director) at Get Indemnity said: “Our businesses are constantly changing year-on-year, so whilst it might be convenient to run your business insurance policy, you should really be asking for new quotes. Not only could you be saving money, but you may need to adjust the cover that you have access to. If something happens to your business, you need the right protection.”
He continued: “In particular, this year has been very transitional for a lot of companies, with COVID-19. Different staff levels, turnover, office requirements, risks - and these need to be adjusted and considered in your policy for 2021.”
According to the study carried out, small businesses with less than 50 employees were the worst offenders with 76% having not sought alternative insurance quotes in the past three years and 42% in the past five years.
The main reasons identified why SME’s were not engaging with the insurance buying process were identified as:
- We have no reason to change
- We trust our insurance is adequate
- Our policies are automatically renewed online
This survey has further supported the FCA’s Thematic Review which recently showed that 40% of SMEs in the UK could be underinsured. The implications of this can be very severe if companies are not prepared for legal claims, loss of business or even cyber attacks, something that is catching a lot of people off guard.
Around 68% of respondents did not purchase any cover for cybercrime and 38% did not purchase management liability insurance. Small businesses with less than 50 employees were the worst offenders with 82% without cover for cybercrime and 60% without management liability insurance.
Taylor explained: “We also found that businesses that were growing faster, such as greater employee numbers and a higher turnover were also more susceptible to underinsurance. When we completed a more in-depth review of their insurance, the limits purchased and amounts covered had not changed, but their potential maximum loss had increased.”
“SME’s should also consider claims inflation and recent changes in the law with respect to discount rates for personal injury compensation. If a member of staff or public has an injury on your premises, you want to make sure that adequate protection is available under your public liability insurance and employers liability insurance that will not threaten the future of the business.”