22 Oct, 2019
There are lots of reasons to achieve ISO and other certifications, some do it to improve their business processes, some to improve their employee and customer service and some simply to satisfy contractual requirements – but did you know your insurance company also loves certifications?
When an insurance company considers quoting for a business’s insurance they like to know as much as possible to ensure the premium is an accurate reflection of the risk. Good attributes are a positive whist poor practices are a negative. In the absence of evidence the insurer will price somewhere in the middle. If your business can show it has quality certificates and standards you are putting your business in a positive light, attracting lower priced quotes from a wider range of insurance companies.
What your standards tell insurers about your business
ISO 9001 (the Quality Management Standard) shows insurers that you have excellent business procedures in place to ensure high standards in your products and services. This will have a positive impact on Public & Products Liability insurance, Product Recall and Product Guarantee insurance as the likelihood and severity of claims will be reduced. It may also help with Employer’s Liability, Property and Business Interruption insurance costs as insurers appreciate that ISO 9001 systems and practices will make your business safer.
ISO 27001 (the Information Security Management Standard) is shown to reduce the risks and consequences of malicious and accidental data breaches which may benefit your Cyber & Professional Indemnity insurance and perhaps also your Business Interruption cover.
ISO 45001 demonstrates that you have high standards of health & safety, something we all know is an insurance company’s pet subject. A robust health & safety culture will help you negotiate cheaper Public & Employer’s Liability insurance. It may also help with Management Liability and benefits such as Travel insurance.
ISO 22301 is the business continuity standard so it comes as no surprise that this should help with your Business Interruption insurance costs. It can also help reduce your Cyber, Event Cancellation, Product Recall and Product Guarantee premiums as often the largest part of an insurance claim is not the incident itself but the consequential losses.
Some businesses that operate in higher risk industries or who want more specialist types of insurance may find that certifications are not only a good way to save insurance premiums, they may actually be the only way to get a quote. This is because those insurance companies only want to deal with high quality businesses who have taken the time and effort to achieve certification and demonstrate a culture of excellence.
If you have achieved an ISO standard, or are in the process of working towards one, then make sure you inform your insurer as every bit of information they hold which puts you in a good light will work in your favour.
Duncan Sutcliffe is the Director of Sutcliffe & Co Insurance Brokers. Having recently canoed the length of the River Severn in just seven days to raise money for Onside Independent Advocacy, he is now back on dry land offering advice on how ISO standards and other certificates can help your insurance. You can contact Duncan and his team on 01905 21681 or by emailing firstname.lastname@example.org.