Haggling business Insurance

glothy

Does anyone know if direct line will reduce business insurance renewal quotes if you call them? Increase this year is ridiculous. When I called them about car insurance last year they reduced it without question. I stupidly contacted them via whatsapp this time around which is obviously an even easier way for them to tell me to get lost. I suppose I want someone to tell me that even if had called it wouldn't have made any difference. Just to clarify that I wasn't contacting them about car insurance this time but landlords insurance. 

MyRealNameToo

Have you checked if their quote is competitive? 

No harm asking if they can do anything even if it is but knowing if it's the cheapest out there or you can go elsewhere and save a packet can make your conversation more informed. 

Savvy_Sue

I think there are definitely times when it is worth using a broker, and this is one of them ... 

MyRealNameToo

Savvy_Sue said:

I think there are definitely times when it is worth using a broker, and this is one of them ... 

What value do you think a broker would add @savvy_sue? 

Most brokers are non-advisory these days, many effectively just enter your details into a system not a million miles away from confused.com (in fact confused.com uses a broker (Simply Business) for its business offering and they just expose their panel as if it were an aggregator) and tell you the cheapest price or top couple if they are not using harmonised terms. 

Brokers certainly have their place, and if you google for business insurance the majority of companies returned are brokers, but for simple pricing I dont think they are any better or worse than direct insurers. 

Where a broker is certainly better is in hard to place cases as they'll have knowledge who's willing to take on this type of customer and actually speak to an underwriter rather than having to trawl hundreds of websites, look at terms which are unclear if they exclude you or not. In my business insurance I know that MGAs are my best bet and many of them dont sell direct at all. 

There is nothing in the OPs post to suggest they are doing anything thats hard to place, just that they arent happy with their renewal quote. 

Savvy_Sue

Perhaps my needs for a broker have been a bit more niche: I have been able to present needs and feel there was a real understanding of what we needed, and a knowledge of who to approach for quotes. 

MyRealNameToo

Savvy_Sue said:

Perhaps my needs for a broker have been a bit more niche: I have been able to present needs and feel there was a real understanding of what we needed, and a knowledge of who to approach for quotes. 

I started my career in a direct insurer so possibly coloured my opinion of them. 2 years ago a randomly selected broker offered a policy for me and the first exclusion was anyone working in activities regulated by the FCA. To give them their dues its a bit murky as my business isnt FCA regulated but our services are provided to those that are but a quick check with the underwriter said it was a definite no so had I not checked would have been sold a policy that doesnt cover what we do. 

There are better ones out there but just because they're a broker doesnt mean they are good. Some have been ok but havent managed to even get quotes without them going via a Lloyds Broker which is little point as they dont write premiums as low as mine in Lloyds of London. 

metropolis090

From what I know, it’s not mandatory in all cases, but a business bank account really helps keep things separate and clear, especially for taxes and record keeping.

MyRealNameToo

metropolis090 said:

From what I know, it’s not mandatory in all cases, but a business bank account really helps keep things separate and clear, especially for taxes and record keeping.

There is no legal requirement for sole traders to have separate accounts however almost all bank account T&Cs say you cannot use a personal account for business purposes so in principle your running the risk of having your accounts closed, debts demanded for repayment etc In practice the risk is very small and many do do it.