It's not all about the money.

Money isn't everything.

Don't get me wrong - I'm in business to make it. I enjoy having it and spending it. I prefer when I have it to when I don't.

What I don't do is let money or cost always be the deciding factor in business decisions. To do so would be silly.

The best price is not always necessarily the best value.

We recently renewed our insurance and found ourselves in the situation whereby we had other brokers courting our business and offering significantly cheaper premiums. In one case, the premium on offer represented a 40% reduction on the renewal premium being offered by the brokers we'd always been with.

Everything was equal, as such. Each of the brokers had all the same information. They had our turnover figures, projections for the coming year, professional profiles and everything else they needed in order to make an informed assessment to establish our premium.

So, why could one offer a price nearly half that of another?

The answer was both underwriters' experience in the events industry.

Basically speaking, one HAD experience and the other didn't. The one offering the cheaper premium was new to the events market. 

It's important to us that our underwriter and broker are experienced and understand events and the associated risks. We have a very comprehensive policy and we need to know that those insuring us 'get events' and are evaluating the risks properly for us.

We went with the more expensive option as it represented the best value to us.

It's not all about the money.