Keeping overheads low is a big concern for all businesses, not least in the hospitality industry where operators are strapped with a whole host of costs - including high rents and business rates.

Well, according to Damon Blann of Insight Insurance Management, there may be one area where things are about to improve.

"Insurance premiums have been on the rise now for a few years, but insurers are finding that for the correctly managed risk, premium increases are now being kept to the very minimum and in some cases a reduction in premium applies," Blann says.

Over the next few months he expects to see "a slight softening" in the insurance market and, with correct risk management of the business, hotel, restaurant, and pub operators will be able to benefit from reduced premiums. "Insurance companies are more than willing to knock 10-20% from a customer's premium," he says.

To get the best deal, the key is to be proactive with regard to risk management and to demonstrate that clearly to the insurers. A lot of it is common sense.

Hold regular safety inspections, looking at things such as wiring, and clearly document any efforts you make in areas such as health and safety, including photographic evidence and any certificates you have gained. Look at the construction of the property, including the buildings materials and even the style of roof (Blann advises that flat roofs are unpopular with insurers because they are more likely to leak). Are the floors wooden or made of concrete, which is less of a fire risk?

Also, show that you have addressed business continuity matters, even if it's only a matter of demonstrating that you know who to call in a number of emergencies, including tradesmen such as electricians as well as the number of the local police station.

"It's time to shop around for a premium, but only if you're (a) already health and safety and risk management orientated or (b) prepared to be," Blann says. "Remember that insurance companies see thousands of quotes each day. You need to differentiate yourself from the rest by showing you are less of a risk."

Damon can be contacted on 07074 500700.