Insurance is essential for every Australian business. Designed to help you recover following an accident or incident, it’s can arguably be one of your most important investments.
But it can also represent a significant expense. That’s why it pays to spend time and effort making sure you secure the right cover at the right price.
Broker Technical Manager Michael White shares some tips to help you reduce your cover in 2024.
Shop around
With insurance premiums rising significantly in recent years, it pays to keep shopping around and comparing your options, White says.
Doing so will help you find the policies that represent the best value for your business.
Increase your excesses
Your excesses – the sums you agree to pay when claiming on your policies – can make a big difference to the price of your premiums.
Provided you have a reasonable savings buffer to draw on, should you need to make a claim, raising your excesses can be a way to reduce insurance costs.
“There’s no one-size-fits-all solution and that’s why it pays to seek expert assistance”
Understand what you’re covered for
All insurance policies have criteria to which customers must adhere. Failure to do so may mean cover is denied in the event of a claim.
Of late, insurers have become stricter about enforcing these criteria. That means it’s critical for you to understand what you can and can’t do in order for your policies to remain valid.
For example, if your home-based business conducts a high-fire-risk activity like welding, your standard building and contents insurance may not cover you for fire.
“Provide potential insurers with accurate and complete information about your operations so they can assess the risk properly and offer policies that will give you the protection you need,” White advises.
Ask for help
Working out what type of insurance cover is appropriate for your business and how much you should spend on it isn’t always easy and getting it wrong can be expensive.
Small business owners are often under-insured and can find recovering from an accident or incident challenging as a result.
Meanwhile, over-insuring could see you spending hundreds or even thousands of dollars a year on cover that you just don’t need.
There’s no one-size-fits-all solution, and that’s why it pays to seek expert assistance, White says.
“A broker or adviser takes the time to understand your operations and the risks you face and can help you determine what’s right for your circumstances,” he says.
Cover for the year to come
Insurance is there to protect you when things go wrong. Your broker or adviser can help you find the cover you need to help safeguard your small business from accidents and incidents in 2024 and beyond. Contact your broker or adviser today if you’d like to review your current policies or discuss your requirements.
Important notice – Steadfast Group Limited ABN 98 073 659 677
This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker or adviser as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.
