It’s worth using a broker for your commercial insurance renewal, even if you’ve been happy with your current cover. A broker can check whether your policy still suits your business’s needs, compare it against the wider market and flag anything that’s changed since it was last reviewed, which is something that auto-renewal misses. Here’s what this process actually involves, and when to start. If you engage a Broker on an advised basis you can expect them to advise you on the cover limits and premiums and carry a professional duty to you if your claim is not met. This is not the case dealing with an insurer directly where you are on your own in setting the specification.
Should you use a broker at renewal?
Yes. Renewal is the one point in the year when your insurance is guaranteed to be looked at again, so it’s worth using it as an opportunity rather than letting it renew automatically. A broker will check your policy against your current risk profile and needs, compare pricing and cover across a range of insurers, and flag anything that’s changed in your business since the last renewal.
Brokers are typically paid by commission built into the premium – on mid market risks Castlemead would rebate this commission and work on a fee basis mitigating the 12% insurance premium tax on what could be 30% of the premium.
Why auto-renewal quietly costs businesses money
Auto-renewal is convenient, but it assumes nothing about your business or the insurance market has changed, which is rarely true. Premiums can increase with every renewal without anyone checking whether the cover still fits your business’s needs, and policies can end up covering risks you no longer have, or missing new ones you’ve taken on. None of this shows up unless someone actually reviews the policy, which is closer to what an insurance audit does, rather than just providing the convenience of what auto-renewal is designed to do.
What changes in your business should trigger a review
A review is worth doing properly if you’ve taken on new premises, hired more staff, started operating internationally, changed what you make or sell, taken on new contracts with specific insurance requirements or filed a claim in the last year. Any of these can shift your risk profile enough that your existing policy no longer fits, even if the renewal notice looks routine.
How often you should review commercial insurance properly
At a minimum, your commercial insurance policy should be reviewed at every renewal point: once a year. But a proper review is worth doing more often if your business is changing quickly. Many brokers, including Castlemead, build in a mid-term review as standard, checking in roughly six months after your renewal to catch anything that has shifted since, rather than waiting a full year to find out. If you are a scale up and are growing rapidly, a 3 month review could be a good thing.
What a broker actually does at renewal
A broker puts together a clear picture of your business and risk, takes that to the market rather than just accepting the renewal terms your current insurer offers, and compares cover and pricing across multiple providers. Castlemead, for example, typically shortlists from more than 80 insurers down to a handful that are genuinely suited to your size and sector, then negotiates terms on your behalf before anything is agreed. This is essentially the pricing and placement process. We then create a presentation that details our findings and recommendations across all lines in simple terms so that you can understand what you are paying for and what you are and are not covered for.
The renewal timeline: when to start
If you’re doing it alone, we’d recommend starting the process around 60 to 90 days before your renewal date. This gives enough time to properly review your business, see what’s available on the insurance market and still leave room to switch broker or insurer if needed, without risking a gap in cover.
Leaving it until the week before renewal usually means accepting whatever’s offered, because there isn’t time to do anything else, and you have very little leverage. We’ve been helping UK businesses review their cover properly since 1987. If your renewal is coming up, give us a call on 0117 945 3907 or get in touch.
Frequently Asked Questions
We’re renewing our commercial insurance: should we use a broker?
Yes. Renewal is the one guaranteed point in the year when your cover gets looked at, so it’s worth using a broker to do that properly rather than letting the policy auto-renew without being checked. A broker will review your business for anything that has changed, look at the market and compare multiple insurers rather than accepting the first deal offered, and flag gaps or unnecessary cover. Castlemead, for instance, typically shortlists from more than 80 insurers down to a few genuinely suited to your business, and will then negotiate on your behalf.
How often should a business review its commercial insurance?
Your commercial insurance policy should be reviewed at least once a year, when it’s time to manage your renewal. However, if your business is changing quickly, a review is worth doing more often than that. Many brokers, including Castlemead, build in a mid-term review roughly six months after renewal, specifically to catch changes early rather than waiting a full year.
New premises, new staff, new contracts or a claim being filed are all reasons to bring a review forward rather than waiting for the next scheduled renewal date. Waiting for the annual renewal to catch these things means your cover might be deemed inadequate, and leaves you at risk of a claim being dismissed should something happen.
Is auto-renewing business insurance a bad idea?
Auto-renewal is not necessarily a bad idea, but it does mean nobody is actually checking whether your cover still fits your business. Premiums can quietly increase year on year, and your policy can end up covering risks you no longer have or missing those you’ve recently taken on. Auto-renewal is fine as a safety net, but it shouldn’t replace an actual review of your policy. The safest approach is to let a broker check the policy properly each year, then use auto-renewal only as a fallback if that review genuinely isn’t possible or you don’t have enough time to switch insurers.
How far ahead of renewal should I start the process?
We’d recommend starting the renewal process 60 to 90 days before your policy end date. This allows enough time for a proper review of your business and to compare the market across multiple insurers rather than rushing to accept whatever’s offered first. It also leaves room to switch broker or insurer if needed, without any gap in cover.
Starting the week before renewal usually means there isn’t time to do anything apart from accepting the terms in front of you. For businesses with more complex risk, such as those with multiple locations or international operations, starting closer to 90 days provides more time to find the right cover.
What does a broker do at renewal that I can’t do myself?
A broker has access to the whole insurance market, rather than just the insurer you’re currently with, and can compare pricing and cover across multiple providers to find the most appropriate policy. They’ll also review your business properly to identify anything that’s changed, which is easy to overlook when you’re running the business on a day-to-day basis. Castlemead, for example, typically narrows a huge number of insurers down to a handful relevant to your size and sector, which is difficult to do without the market access that brokers have.
Can I change broker at renewal?
Yes, renewal is one of the simplest times to change broker, since it naturally lines up with when your policy comes up for review, anyway. You’re not obligated to renew with your current broker just because they arranged the previous policy, and a new broker can start the market review process ahead of your renewal date.
If you’re thinking about changing your insurance broker, our guide to switching commercial insurance brokers covers exactly how that works, including what happens if you’d rather switch mid-policy instead of waiting.
