How Combined Insurance Policies Reduce Business Costs

Many combined policies can save your business money. For example, combining different insurances such as for vehicles, premises, business interruption, and liabilities. Different insurances are, for instance, combined with motor trade insurance, for those working in this type of business.

In areas outside of the motor trade, the combined insurance policies reduce the cost of insuring both buildings and contents used for commercial activities, which can be expensive. If you’re willing to look at combined insurance policies, there are various ways in which they will help you save money on costs associated with your business.

Discounts When Using One Insurer

Did you know that combined policies often give you a discount for insuring multiple items with the same insurer? This is because it’s cheaper for the insurer to insure one customer for several items than it is to provide insurance for several customers insuring one item each.

In a domestic situation, you might include a multi-car policy where a home has a second or third vehicle to insure. In business, that might mean insuring a fleet of vans instead of insuring each one separately. Insurers identify the reduced administration costs and the convenience of lots of insurance plans all being packaged together. Many of the same questions will, after all, be asked when policies are set up. It is good, too, where renewal dates are kept the same and in sync for different policies in terms of remembering when they are due.

Higher Excess Option

Another way in which combined insurance policies can help reduce your business costs is by giving you the option to pay a higher excess. This means that you would be responsible for paying the first part of any claim, up to the excess amount, before the insurer steps in to cover the rest. This option is available with a combined policy just as it is when you insure separately. Some excesses might be compulsory ones, while other ones are voluntary that you have opted for to reduce the premium you pay.

While accepting a higher excess might seem like a risky proposition, it can work out cheaper in the long run as it reduces the overall cost of your premiums. Of course, you need to be sure that you can afford to pay the excess in the event of a claim, but if you can swing it then combined insurance policies could save you a significant amount of money.

Motor Trade Insurance

When it comes to combined insurance policies, motor traders can benefit greatly from the cost savings. A motor trade insurance policy can help a business in the motor trade to save money on both its property and liability insurance costs. This is because a combined policy typically offers discounts that are not available when purchasing policies separately. By combining coverages, businesses can save hundreds of pounds on their yearly insurance costs.

Businesses in the motor trade can find combined insurance policies that cover everything from vehicles and machinery to tools and equipment. In some cases, businesses can also find policies that cover their premises and stock. By bundling all of these coverages together, businesses can save a significant amount of money on their insurance costs.

The types of insurances contained within a motor trade policy include:

  • Third-party road risks.
  • Damage to a business’s vehicle or a customer’s vehicle while being driven or worked on.
  • Property cover in terms of fire and theft.
  • Business interruption.
  • Legal expenses.
  • Employer’s liability.
  • Public liability.

 

So, if you’re looking to reduce the cost of insuring your business, combined insurance policies are worth considering. In particular, a motor trade insurance when cars or vehicles are your business. Just be sure to shop around and compare quotes from different insurers to make sure you’re getting the best deal possible.

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