Seven out of ten of Scottish businesses are concerned about rising insurance premiums

10 June 2003

Over 74% of small businesses in Scotland are concerned about the impact of rising insurance premiums on their business according to research from Zurich's UK Commercial business.

Last week both the Office of Fair Trading (OFT) and the Department of Work and Pensions (DWP) published their much anticipated reports into liability insurance containing some short term actions that will benefit customers, brokers and expert insurers, and offer a firm commitment to longer term action. However, in light of the high level of concern amongst Scottish small businesses about rising insurance premiums, Zurich is urging them to act now to try and control their premiums.

John Crawford, Regional Manager for Scotland said: "The most important thing that our small businesses can do to control premiums is to invest in and manage health and safety within the business. However only 52% of Scottish businesses surveyed were concerned about risk management in the workplace. The insurance industry is becoming more sophisticated in terms of risk selection and companies need to demonstrate what measures and controls have been implemented to minimise the potential for accidents at work."

Zurich has the following tips for small businesses to help them control their premiums:

1. Develop a "safety culture" within the business. Safe does not need to be slow
2. Ensure that the person responsible is adequately trained on Health and Safety and has time to devote to implementation
3. Benchmark yourself against your peers through an industry association
4. Choose a broker or speak to an expert insurer who has experience and knowledge of the SME industry
5. Do not tender for broker services more than every three years - insurers are turned off by clients who move broker/ insurer every year
6. Involve your broker in your business - treat them as the insurance part of your management team
7. 
   Ensure all employees are aware of their responsibilities for safety at work and how to report any problems they find.

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The Zurich Financial Services Group is an insurance-based financial services provider that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people.