Source: Towergate Insurance

How to keep your premiums down but still have the right cover

Our trusted partners, Towergate Insurance, have shared the following article with us to share with members to give advice on how to keep your insurance premiums down, whilst still ensuring you have the right cover for your business. Read below for the article from Towergate Insurance.

Rising insurance premiums can have a significant impact on homecare providers’ budgets. In the current economic climate, companies looking to reduce their outgoings are weighing up the
cost of insurance against the level of cover they need.

There are several factors that influence the insurance buying process:

Mandatory insurances

In general, some covers, such as Employers’ Liability, are necessary to trade legally. The legal
minimum is currently set at £5 million, but most Insurers generally don’t offer cover for less
than £10 million. To reduce cover from the standard £10 million, down to £5 million, would
only save a minimal premium amount, if any at all.

Programme review

A thorough review of existing insurance arrangements can help companies make informed
decisions about which risks should be protected with insurance and which can be catered for

Much depends on the likelihood that something will go wrong and the impact if it does. So
while a buildings insurance premium is generally considered a price worth paying, the cost
of insuring against the loss of mobile phones may not be.

Excesses & Warranties

The application of warranties or increased excesses reduces the insurer’s exposure and can
results in a premium saving. The insured should be confident any liability they incur as a
result would not seriously affect their ability to trade.


Large companies with the finances and resources to do so, may decide to meet the cost of
some or all claims in-house.

Companies considering reducing their insurance spend should consult a broker who can guide them
through the process and make them aware of any significant consequences.

The Care Sector

Insurers set premiums to reflect the risk a business represents. So it’s important to demonstrate:

  • Robust management and health & safety procedures are in place
  • Staff are adequately trained, and…
  • Claims are the exception rather than the rule

In today’s litigious environment the care sector is vulnerable to an increase in negligence-based
claims and must take seriously the benefits that risk management can bring. Utilising on-line
training, accident reporting and knowledge banks can improve business standards and reduce the
likelihood of claims being made.

We encourage all businesses to work with a broker who can offer industry-specific expertise, provide
proactive risk management services and undertake a thorough insurance review to establish where
legitimate and appropriate cost savings can be made.

Towergate Insurance is a homecare insurance specialist. We provide a range of insurance products and proactive risk management tools that contribute towards premium savings and help businesses operate professionally and profitably. For more information contact our homecare specialists on 0330 123 5172 or go to

Towergate and Towergate Insurance are trading names of Towergate Underwriting Group Limited. Registered Office: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent, ME14 3EN. Authorised and Regulated by the Financial Conduct Authority.