Posted on 17th March 2016
Stealth tax should prompt rethink on business insurance
Businesses should examine their insurance policies carefully in the light of higher Insurance Premium Tax (IPT) announced in the Budget, Burgess Hill brokers Bennett Christmas said today.
On Wednesday, the Chancellor said the levy charged on most commercial and household policies would go up by 0.5% to 10%.
The tax hike follows a 3.5 percentage point rise in the IPT last year.
“But that’s unlikely to be the end of it,” said Mark Bennett, CEO of Bennett Christmas Insurance Brokers. “The IPT has already gone up once in the past six months and while this increase is less than was widely anticipated, the direction of travel is clear.
“Our concern is that small businesses will look to cut costs by reducing their cover and increasing their exposure when what they should be doing is looking at where the biggest risks are in the business and prioritising what they need.
“Most packaged insurance policies include the ‘must-haves’ but they also lump in some of the ‘can-do-withouts’. By looking carefully at the business, a good broker can build a bespoke policy that’s often better than what you had and costs you less.
“For example, many policies include cover for goods in transit but they don’t include cyber insurance. You may only carry a couple of thousand pounds worth of goods in a van, but your company’s cyber exposure could stop your business altogether if your computer network is infected and this is likely to cost a lot more; I think I know which I would choose to include in my policy.”
"The BHBPA is an energetic and vocal organisation that connects and empowers and informs the local business community acting as an effective conduit to local authority and other organisations. We are proud to be part of that community and the association."
"I am delighted to have a long-standing relationship with the BHBPA. Since its foundation the Association has gone from strength to strength and there is no doubt that it has brought huge benefits to its members and the business community as a whole through the partnerships it has formed with the local authorities, Sussex Police and local organisations. It is paramount that Burgess Hill businesses have an effective collective voice."
"“Sutton Winson have been members of the BHBPA for around 7 years. We have found it a great way to keep in touch with Burgess Hill businesses and to meet with likeminded people. It’s not just another “networking” group, as it tackles the real issues and gets things done”"
"This association was started with a lot of effort from a few local businessmen and has proved to be a very powerful and useful tool for our business. The BHBPA has influence at the top level; when action is needed, the BHBPA gets it done. We are kept in touch with all that is happening on our doorstep and will often act because of what is published in the weekly emails / newsletters."