Businesses cutting back on insurance, says BIBA

Wed, 20 May 2009

New research from the British Insurance Brokers Association (BIBA) shows that more than half of UK businesses are aiming to reduce their spending on cover.

In a survey of its member brokers, the organisation found that they had experienced companies with commercial insurance policies cutting back on the level of protection they receive from their providers, taking on a greater risk themselves.

Some 20 per cent of respondents said that commercial liability is the insurance most affected by the recession, a further 20 per cent said they had seen a reduction in the number of combined cover purchases, while 14 per cent said that all forms of business protection were suffering.

Eric Galbraith, chief executive of BIBA, told companies looking to cut costs: "Don't always just go for the cheapest because it will have gaps in cover, it won't necessarily be tailored to you, and you will have something where what you want covered is not covered. Just make sure you've got the right cover."

Recent research by Sainsbury's Home Insurance showed that personal cover policy holders were also cutting back, with 65 per cent of British people turning to DIY instead of receiving professional help.
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