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The risk library  /  What the policy says

Art. 07 · What the policy says · 3 min read

It is the clauses, not yes or no

"Should we insure it?" is the wrong question. Every policy is a set of dials, and the money is in the ones nobody turns.

Most renewal conversations are about one number: the price. But the price is an output. The inputs are a set of settings, each of which you can change, and each of which changes what you are actually buying.

Two policies quoted at £18,000 can be so different that one would cover a serious loss and the other would leave you carrying most of it. The headline is the same. The dials are not.

THE SETTINGS THAT MAKE A POLICY Which perils are covered fire, flood, theft, escape of water… Sum insured the most it will ever pay for the asset Excess per claim £2,500 today · worth pricing at £10,000 Limit for any one event especially liability, cheap to raise Indemnity period 12 months by default · 24 or 36 available
  • Where your policy sits today
  • A setting worth having priced
Fig. 8 · The dial that gets discussed at renewal is the price, which is not on this list. Changing any of these changes the price; changing the price changes none of these.

The productive move at renewal is to stop asking "can you do better?" and start asking for priced alternatives. A broker can usually get three variants quoted with a single instruction, and the differences between them tell you more about your risk than the headline number ever will.

Use it

  • Ask for three, not one. As quoted; with the excess raised to a level you could genuinely absorb; and with the liability limit doubled. The price differences are the information.
  • Price the extras separately. "What would it cost to extend the indemnity period to 24 months?" is often a surprisingly small number.
  • Write down what changed. Year on year, the settings drift. A one-page record of the six dials makes drift visible.

Want this run against your own numbers?

We put ranges, not single figures, against the risks your business actually carries.

Speak with an expert

Explanatory content only. This article describes how insurance and risk decisions work in general terms; it is not insurance, legal, actuarial, or investment advice, and it is not a recommendation to buy, keep or cancel any cover. Every figure and diagram is illustrative, chosen to make a mechanism visible, not to describe any particular business.