AXA tempts brokers with SME premium waivers

AXA Commercial Lines has introduced premium waivers for commercial combined, motor trade and package insurance policyholders.

On request, sums insured for buildings, contents and stock will be increased free of charge by up to 20% (up to a maximum of £250,000). Business interruption cover with a maximum indemnity period of 12 months will also be increased free of charge on request to 18 months (with a consequent 50% increase of sum insured, maximum £250,000).

The offers are valid until 30 June 2012.

The offer is in response to AXA’s discovery that most SME customers still only insure for a maximum period of 12 months following a loss, despite the fact that this proves insufficient for many businesses to get back on their feet.

AXA Commercial Lines intermediary managing director Matthew Reed believes insurers and brokers can work together to resolve the situation. “Our day to day involvement with SMEs and recent research shows that under-insurance is a massive issue. It impacts SMEs themselves but leads them to question the reputation of insurers and brokers,” he said.

He added: “We would urge brokers to contact their clients and carry out a mid-term review to bring their values and estimates up-to-date. We know that convincing SMEs to think about insurance outside of renewal can be an uphill struggle, but these are stark warnings, which clients should heed.”