PASC UK AND POLICY POWERHOUSE ARE MAKING COMPLIANCE PAY AND LOWERING INSURANCE COSTS
For too long, professional self-catering operators have been hit from every angle, with insurance premiums continuing to rise.
PASC UK has advised Policy Powerhouse how to recognise professional self catering businesses who have invested in compliance, safety and professionalism to become a better insurance risk and therefore deserving of lower insurance premiums.
If your insurance premium is above £1,500 and you have a good safety and risk management policies in place, please read on – Policy Powerhouse may well be able to offer you a substantial saving for compliance.
Turning compliance into commercial benefits
Across the sector, owners have spent thousands responding to the legislative changes around fire, and compliance with health & safety for their self-catering businesses.
Fire risk assessments, linked fire alarms, emergency lighting, electrical testing, gas safety, documented procedures, hot tub testing, business continuity plans, the list just goes on…..
Many insurers treat compliant professional operators in exactly the same way as poor-quality or unregulated accommodation yet professional operators actively reduce risk.
That means fewer claims, safer guests, better managed properties. PASC UK and Policy Powerhouse have been working to ensure insurers properly recognise that difference.
So what did we do about it?
- Engaging directly with insurance underwriters to explain why a professionally run holiday let business is a better than normal risk
- Providing sector data and operational evidence
- Explaining how professional self-catering businesses actually operate
- Highlighting the investment owners are making in compliance
- Demonstrating the difference between compliant operators and casual entrants to the sector
This work has included ongoing discussions around:
- Fire safety compliance
- EV charging policies
- Wood burner and Chimney checks
- Risk management standards
- Guest safety procedures
- Evidence-led underwriting
- Risk Management programs
- Business Continuity plans
What it means for you in real discounting terms:
Public Liability Cover: Buildings & Contents Cover:
- Fire Risk Assessment written by a competent Fire Risk Assessor and in place (including fire suppression system if specified) – 10% discount
- Fire Risk Assessment written by what you have determined a competent person: 5% discount
Public Liability Cover:
Professional, dedicated health and safety plan in place updated annually: 20% discount
Written (by property owner without professional input) health and safety plan updated annually: 5% discount
No health and safety plan in place: 20% loading (Please see the template health and safety plan in the PASC UK Members Area)
Employers Liability Cover:
- Professional, dedicated health and safety plan in place updated annually: 20% discount
- Written (by property owner without professional input) health and safety plan updated annually: 5% discount
- No health and safety plan in place: 20% loading
Business Interruption Cover:
Written Business Continuity Plan in place: 5% discount
Claims Experience (whole policy):
No claims in last 5 years: 30% discount
Loss ratio over last 5 years less than 20% (premium paid/claims cost): 20% discount
PASC UK Membership: 10% discount on the whole policy
Case Study:
Risk Presented: Residential Home + 5 Holiday Let Cottages +Out buildings + Swimming Pool+ Bio Mass Boiler + small number of clerical and manual staff.
- Buildings Sum Insured (Private Residence and Holiday Let Cottages £4.8m
- Contents Sum insured (Private Residence and Holiday Let Cottages: £329,000
- PL Cover: £10m
- EL cover: £10m
- Business interruption cover: £330k per annum over 36 months
Quotation:
| Section | Premium | Reason for discount | Discount % | Discount Amount | Premium paid |
| Buildings insurance | £5,308 | Fire assessment actioned and in place | 10% | £531 | £4,777 |
| Contents Insurance | £1,394 | 10% | £139 | £1,255 | |
| Public Liability Cover | £1,249 | Prof. produced H&S Policy in place | 20% | £250 | £999 |
| Employers Liability Cover | £303 | Prof. produced H&S Policy in place | 20% | £61 | £242 |
| Business Interruption coverage | £750 | Fire Assessment actioned and in place/Business Continuity Plan in place | 10% & 5% | £113 | £638 |
Total discounted premium before PASC Discount | £7,911 | ||||
| PASC membership discount | 10% | PASC Membership | 10% | £791 | |
Net premium to be paid by the insured before IPT | £7,120 | ||||
| Total Premium due before discount | £9,004 | ||||
| Total discount applied | £1,884 (21%) |
The outcome is clear.
We wanted professional self-catering businesses that invest in compliance to be seen as a lower-risk business, and that should mean:
- Fairer premiums reflecting reduced risk
- Realistic policy conditions
- Fairer underwriting decisions
- Improved long-term premium stability
Compliance should pay.
Note: PASC UK is not providing any form of insurance advice and is not recommending Policy Powerhouse Insurance Services.
PASC UK is making its members aware of the services provided by Policy Powerhouse. PASC UK has assisted Policy Powerhouse in developing an understanding of the needs of the Self Catering industry and helping them to determine how pricing should apply to businesses who operate within the guidelines that PASC UK provides to its members for a well run self catering business.
PASC UK is not in any way responsible for the services provided by Policy Powerhouse but at the point of writing this communication we have only received positive feedback from our members with regard to the services provided by Policy Powerhouse both in terms of service and pricing.