Business insurance - 15% premium increase

[clockworks]

My business insurance renewal is a shade over £500 - a 15% increase.
Seems expensive?

I am based at home, using one bedroom as a workshop, another as an office and storage/testing room.
Cover for customer clocks, spares and tools (£25k)
Public liability and goods in transit cover.
Cover for cash in a safe (£5k)

Obviously no buildings cover.

My house insurance is also a lot more expensive. I had to go through a broker, rather than the normal bank or online cover, as none of them would allow a home business that isn't purely office/admin. I'm paying £600 in a very low risk area. A standard policy through my bank would be half that. Annoying that my premium is double, without actually providing any additional cover for the business.

I also have to pay extra (albeit not that much) for business use on my car, again with no additional benefits for goods etc.

Since I'm now 67, I'm reducing the hours I work, so turnover and profit are low - £15k profit on £20k turnover.
So, I'm paying £800+ insurance for a business that has maybe £15k of assets (tools, spares customer goods) and makes £15k profit a year.

[elise2000]

If it makes you feel better, my renewal went up 50%. They disliked working from home with stock cover it seems.

Try expression insurance- got a good deal from them in the end

[Ham_and_Jam]

I’m in a traditional bricks and mortar business.

My overheads and cost of goods have gone up over 15% in the last year.

In order to maintain my margin I put up prices accordingly.

All you can do is try to negotiate and seek the best prices you can, and then add your margin. Don’t try and swallow every price rise and reduce your profit.

[clockworks]

elise2000 said:

If it makes you feel better, my renewal went up 50%. They disliked working from home with stock cover it seems.

Try expression insurance- got a good deal from them in the end

I just did an online quote with Expression. Was £8 a year more than my renewal quote for similar cover (basically the minimum that they offer).

[Simpo Two]

clockworks said:

I am based at home, using one bedroom as a workshop, another as an office and storage/testing room.
Cover for customer clocks, spares and tools (£25k)
Public liability and goods in transit cover.
Cover for cash in a safe (£5k)

How much of that insurance are you required by law to have, or is it because you're averse to risk?

[clockworks]

Ham_and_Jam said:

I’m in a traditional bricks and mortar business.

My overheads and cost of goods have gone up over 15% in the last year.

In order to maintain my margin I put up prices accordingly.

All you can do is try to negotiate and seek the best prices you can, and then add your margin. Don’t try and swallow every price rise and reduce your profit.

Some of the parts and consumables that I buy have almost doubled in the last 5 years. Pretty much anything made in the EU. I could save a few quid by buying Indian-made, but the quality often isn't there. Save a tenner on a mainspring, then run the risk of it breaking and a warranty return.

I've been steadily increasing my charges, trying to find the right level where some customers say no. I'm also tracking prices that others put on their websites, aiming to be a little cheaper because I don't have to pay rent for premises.

It just feels like a rip-off paying nearly as much for business insurance as I do for a £450k house, and more than I pay for a £30k car.

[grumbas]

It does feel a bit on the high side for how you've explained your trade.

My suggestion would be drop insurancejon on here a message. He'll know if it's a good rate and if not should be able to source something suitable.

[MOMACC]

If you have used a broker they have reviewed the market for you, trust them.

Insurers profit margins and packaged risks I.e. liability and property are some of the best in around 3 decades, increased premiums should be negotiated hard by your broker although at that premium level it's not really in their interest.