We recently re-negotiated insurance coverage for your 3 retail shops and achieved a 30% cut in insurance costs. We reviewed the needs of each business and set about discussing these with our broker, the same broker we have used for years.
Here are some of the changes we made to coverage:
- Property Cover – Annual Turnover adjusted to reflect trading, Contents incl Re-Fit Costs adjusted, & Stock On Hand levels adjusted;
- Business Interruption – Gross Profit levels adjusted;
- Money Cover – Level reduced from $20K blanket cover to $5K (lower limit); We bank daily so there is minimal cash on hand.
- Glass Cover – Removed for for one store as there now is no glass window as well as no internal/external glass;
- POS Equipment Breakdown – Removed;
- Excesses – Increased from $500 per claim to $1,000 per claim since we have not claimed, ever.
The critical factor for us was that in all our years in retail we have never made a claim on insurance. Then one time our shop was flooded, we claimed against the builder for the landlord for disruption and inventory damage.
The renegotiation process took an hour. Time well spent for the saving achieved.
Yes, it was, Jason. Bless you. Three businesses, three separate negotiations.