It’s possible to make quick, significant and visible savings on insurance, without a complicated process, or even without waiting for annual deadlines…
These savings are highly necessary :
-premiums increased by 7.4% in 2022 (source FranceAssureurs)
-recurring natural disasters will cause premiums to soar in 2025
1 Remove your operating loss:
Operating loss (PE) can represent 35% of your P&C insurance.
Do you really need it?
For example, if you have 2 relatively similar and unsaturated operating sites, you will be able to manage in the event of a disaster.
You can replace the PE with a less expensive “Expenses and losses” guarantee.
2 Reduce the dspan of the operating loss:
The companies usually grant 12 months of operating loss.
Do you really need 12 months to recover after a disaster?
Maybe (maybe even 18 months), but maybe you only need 6 or 8 months.
3 Cut into the fleet:
Car fleet insurance often represents the largest cost item in business insurance.
Are some of your vehicles more than 5 years old, or even more than 8 years old?
Remove the All-Accident Damage (DTA, more commonly All-Risk) guarantee. It weighs almost 40% of the premium…
4 Look at your odometers:
If you are small riders, introduce an annual limit to the contract
5 Do you really need Replacement Vehicle coverage?
100 euros per year per vehicle to be cut.
6 Why multi-driver clauses?
Everyone actually always uses the same vehicle? Cut the clause.
7 Exaggerated amounts in your P&C insurance:
Amounts (office, machines, stocks, etc.) were sometimes initially roughly estimated. Ask for a discount… effective immediately!
Take the opportunity to check the turnover indicated in the contract. Perhaps it is exaggerated.
8 Is your key-man insurance really useful?
Unless it is required in return for a loan, you could also review it.
It is very expensive and is only of interest if you are truly irreplaceable (which is never a good thing).
9 Have you taken out borrower insurance?
A loan of 800,000 euros will cost you perhaps 9,000 euros of insurance via the bank, renegotiable for 5,000 euros…
10 And the deductibles?
Do a little self-insurance!
Manage small claims yourself (commercial discount, etc.).
By increasing your deductible from 300 to 3000 euros, your premium will drop by perhaps 20 or 30%.
Deductibles are the simplest and most effective way to obtain a quick win.
Conclusion:
Let’s be clear: It’s not about doing crazy decisions and putting your company in danger.
Take advice from your broker.
What if you asked for a voluntary premium reduction plan?
Be smart: Reinvest part of the earnings (for example in Director & Officers (D&O)).
Furthermore, it is up to you to implement longer-term actions:
-renégociating with companies
-contract groupings
-preventative measures
Take action! Call your broker quickly.
