Why do I pay the same rate for all my staff when only some of them undertake high risk activities?

The cost of your liability insurance is determined in the main by your projected wages and turnover. If those figures down are categorised into the specific activities of your staff then you will highlight the reduced risk to insurers enabling them to reduce the rates and overall premium accordingly.

I am always asked to project wages and turnover for the forthcoming year but generally this is pure guess work. I know that I will generally be charged more if I exceed these projections which is understandable but to not recieve a refund if I acheive less seems unfair. Is there any way I can protect against such a scenario.

If you request Insurers can offer a premium on a reduced minimum and deposit basis (often 90%) – you are effectively under-projecting your figures which subsequently reduces the initial premium paid. Should you acheive the figures projected then you will owe the deferred 10% at year-end; however this is often waived subject to policy renewal, thus saving you 10% of the original premium.

Can I choose to only insure a percentage of my stock and contents to reduce my premium as I wouldn’t expect to lose everything in one go and I am prepared to take that risk?

That would be considered underinsurance and you will likely find an average clause applied to your policy. This means that Insurers only have to pay the percentage of the claim amount that you insured. If you only insure 50% of your equipment then insurers can choose to only settle 50% of your claim.

As my broker you will receive commission from Insurers for arranging my policy with them. As the government charge a rate of Insurance Premium Tax on the premium I am effectively paying tax on said commission. Can anything be done to avoid this and subsequently reduce my premium?

What about if we work on a fee basis? We can request that Insurers offer us a net rate rather than gross of commission which reduces the tax paid. For example:–
With 20 % insurer commission –
£10,000 premium plus IPT (9.5%) = £10,950 total payable. BHI earn £2,000
Nett of insurer commission –
£8,000.00 premium plus IPT (9.5%) plus BHI fee of £2,000 = £10,760.00 total payable.
You save £190.