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Navigating Rising Costs: Essential Tips for Arborist Insurance

Claims inflation is the additional cost paid by insurers to settle a claim. As these costs increase, insurance premiums will also naturally move higher and will continue to so do whilst inflation remains persistently high. Although inflation has started to trend lower over recent months, its impact continues to be felt.  

Some reasons for this are: 

  • Global events disrupt supply chains. 
  • Skilled labour, especially in caregiving, is scarce. 
  • The price of materials and tools is going up. 
  • Work delays increase business interruptions. 

Predicting future costs becomes a crucial part of the process. Insurance companies must consider inflation trends when setting premiums. This includes anticipating that a claim being settled arising several years from now may involve much higher costs, including wage inflation and an increase in medical care expenses. Equally, the underwriter needs to consider past claim trends, inflating costs to current values and the likelihood of a future claim for a specific industry.  

For example, the premium calculation to ensure your chipper or digger will need to incorporate any increased lead times and up-to-date prices for replacement items. 

It’s a complex and consistent process of evaluation, but essential to ensure that insurance providers can continue to offer competitive premiums without compromising their financial stability. 

The general value of a personal injury claim is determined by the Judicial College Guidelines, which are set every two years. The next update is in April 2024, and considering it is linked to the RPI (Retail Prices Index), the implication is an increase in costs. 

As costs continue to rise, collaboration becomes key. Arborists, business owners, and insurance providers need to work together. Arborists can contribute by understanding the elements driving claim costs and staying informed.  

Here’s our three top tips for tackling rising costs with your insurer: 

Implement comprehensive risk management practices to minimise the likelihood of accidents and claims. This can include regular equipment maintenance, safety training for employees, and adherence to industry best practices. Insurance providers may offer discounts to businesses with strong risk mitigation strategies, recognising them as lower-risk clients. 

Explore the option of bundling different insurance policies into a comprehensive package. Combining public and employers’ liability, plant, and tools, and motor insurance, for example, can often lead to significant cost savings. 

Regularly review your insurance coverto ensure it aligns with your business’s current needs. As your business evolves, certain coverage elements may become relevant. Collaborate with your insurance provider to assess your coverage requirements accurately. 

In a landscape of rising costs, a strategic approach to insurance is essential. Request a quote today to discuss tailored insurance solutions that align with your tree business needs. Your peace of mind starts with a conversation.

For more information about the above, please get in touch

0113 259 3560
enquiries@aborisk.co.uk
Broadway Hall
Horsforth
Leeds
LS18 4RS

0113 259 3560
enquiries@arborisk.co.uk
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