Renewing business insurance for SMEs in 2024

28th March 2024

Advice for local SMEs when renewing business insurance

Renewing business insurance for SMEs

Now is a good time for small businesses to prepare for renewing their business insurance, according to IFM Insurance Brokers in Sheffield.

Rising inflation over the past two years has increased the cost of goods which could mean a business is underinsured when making a claim.

It is therefore important that insurance policies provide the right protection, especially if a business has made changes to the way it operates and to combat rising inflation.

Preparing for renewal in advance is particularly important when the insurance market enters a ‘hard’ cycle, as it is now. This is when insurance premium rates begin to increase, underwriting standards tighten and some insurers reduce their coverage capacity.

IFM recommends that local SMEs take the following actions when renewing their business insurance:

1. Make sure you allow plenty of time before renewing your insurance and don’t leave it to the last minute.

2. Provide as much information as you can to help your insurer understand your business and its exposure. Your broker can help you present this information in the most comprehensive manner.

3. Allow your broker to navigate the insurance market to provide the best possible coverage based on your risk profile and circumstances.

Jamie Harvey, a director at IFM Insurance said: “Many local firms are looking to better understand the risks their business faces, and to ensure they are getting the right, bespoke cover rather than a package of unsatisfactory covers, which may not be effective in managing the risk or saving money. Therefore, it is vitally important to prepare for insurance renewals early, as it could deliver significant benefits, both in terms of cost and level of coverage”.