The principal reasons for increased premiums are:

Increasing frequency of property losses as a result of severe weather patterns.

Increased frequency of large losses, such as fire and theft, due to arson and consequential increases in business interruption claims.

The cost of personal injury claims are increasing dramatically with average employers' liability settlements up 100% in five years.

Insurers are suffering from lower interest rates and falling equity values result in a lower investment return.

Losses suffered by insurers and re-insurers following the World Trade Centre terrorist attack are unprecedented and have led directly to reduced capacity, stringent reinsurance premiums and thus higher rates.

Barely a single business will avoid incurring increased premium costs this year. But there are a number of action points you can take to help minimise the cost.

Risk management Following a serious increase in the level of both employers' and public liability claims, you need to develop an action plan to control the risks and hazards inherent in your business.

You need to monitor your business to check that you are managing risks sensibly, identify risks that you have previously been unaware of (or have chosen to ignore), differentiate between major risks and minor risks and identify which staff are exposed to major risks and develop a training programme to reduce the possibility of accidents.

The Health & Safety Executive (HSE) identifies six key elements of successful safety management that should form an integrated system:

1. Policy - adopt health and safety policies that contribute to business performance while meeting responsibilities to people and the environment in a way that fulfils both the spirit and the letter of the law.

2. Organisation - establish a positive organisation or culture that puts the policies into effective practice.

3. Planning - adopting a planned and systematic approach to policy implementation, after formal risk assessments.

4. Measuring - measure health and safety performance against pre-determined standards.

5. Reviewing - audit and review the performance so that lessons are learned from all the relevant experience and are effectively applied. Training and education are implicit as part of good safety management.

6. Record what you've done -easy to overlook but so important should you have an accident.

If you need help putting this plan into action, talk to your insurance broker. Alternatively, there are marine trade risk assessment experts who specialise in this type of work, such as Nicholsons Risk Management (telephone number 01243 572115, e-mail peter@peternicholson.com).

Other important issues

Before renewal, arrange a meeting with your insurance broker to discuss any forthcoming changes . Provide updated wages and turnover figures and make sure the split of each is accurate.

Remember to check the sums insured carefully under the property/contents section to make sure they are up to date.

Let your broker know if you have implemented any additional security measures, like CCTV or new alarms - these can be worth a discount.

Mention any accreditations or quality standards your company has obtained or is working towards, such as ISO 9002.

Make your broker aware of your terms and conditions of trading - British Marine Federation 12th Edition, for example.

Provide details of any refurbishment work or new buildings at the business premises.

Re-assess your sums insured under the business interruption section - if applicable - and make sure it is commensurate with your current level of business activity and annual turnover.

If insuring under the money section, make sure the limits stated under the schedule reflect your requirements - many more payments are now transacted by credit card.

It's vitally important that you provide an updated list of power operated lifting plant/ pressure vessels used in your business. And you must make sure this equipment is inspected in accordance with statute. Failure to do so could invalidate a claim.

If you provide moorings for customers, make sure they are regularly inspected and maintained and that details of maximum size and value are shown on the schedule.

Provide updated details of health and safety measures taken by your business, including any assessments carried out by third parties such as COSHHA.

Ensure that wage figures provided for woodworking and welding work are accurate as these items attract a higher rate than ordinary manual work.

If insurance is required for plant hired in/hired out, check it is mentioned under the liability section of the policy. Premium is charged on annual fees, so make sure this figure is accurate.

If you insure vessels, such as workboats, under the marine section, make sure the schedule is accurate - particularly the sums insured, which can often be overstated.

If you build boats, make sure the cover you have under the boatbuilding risks section is accurate in listing the maximum value of boats built at any one time.

Another point to consider when negotiating renewal terms is whether your broker/ agent is tied to any one particular insurance company.

It's important they obtain quotes from other insurers to make sure the terms are competitive.

Insurance probably represents one of your largest overheads - it's worth spending time and effort on getting it right.