Reward BI commercial clients with discounts, brokers told

Reward BI commercial clients with discounts, brokers told

Reward BI commercial clients with discounts, brokers told

Brokers have been urged to ensure their commercial clients have business interruption (BI) cover and reward them with reduced premiums after it was recently revealed some mainstream players do not.

Saul Midler, managing director of business continuity consultancy Linus, told Insurance Business that some major businesses do not have business continuity cover, but those that do should be rewarded.

“Commercial clients hope that by taking out BI cover, their premiums go down, and in my experience, this has not been the case. I would like to see discounted premiums for companies that take out BI cover,” he said.

Some risk managers think that a combination of a risk management and basic commercial insurance are enough to protect them in the event of a crisis but this is dangerous thinking.

“There are the risks you see and the risks you don’t,” Midler said. “A few risk managers have very poor business continuity capabilities.  It has not taken on a significant focus within some organisations – some of which are mainstream ones.

 “There could be a role for brokers in educating their commercial clients, who have gone through a robust continuity plan, about having adequate cover.”



  • Scott Robertson 20/03/2013 2:28:46 PM
    Why would premium go down when you give them more cover - especially a cover which an insurer could pay out quite a bit of money on?

    They are buying insurance, not being rewarded with insurance.
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  • Robert Cooper 20/03/2013 2:47:25 PM
    Insurance Brokers do not have control of the premium to gain discounts, all we can do is negotiate the best terms for our client.
    At the end of the day all Brokers will advise their clients to take out appropriate Business Interruption cover, but it remains the client's decision to spend the money to buy this protection. All we can do is constantly try and educate them. It would be helped if the Law, Accountancy and other business advisory network backed up the advice we give, it might give it more credibility
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  • Darryl Witherington - Integrity Assessments 20/03/2013 3:58:16 PM
    I understand Scott however I think the issue here is that if BI is taken and if it is written in conjunction with a robust Business Continuity Plan then perhaps insurers should consider a reduced BI premium - I have found that once, or if, Companies undertake the task of completing a detailed Continuity Plan it certainly would assist insurers by potentially minimizing any BI claim.
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