With costs rising across the board, maintaining margins and profitability is a challenge for Australia’s two million-odd small business owners. Finding ways to cut costs is vital for many.
But some expenses are essential, and insurance is one of them. Without it, your business may struggle to bounce back after an accident or incident.
There are ways you can contain your insurance spend without compromising on the quality of your cover.
Introduce better risk management practices
The insurance premiums you pay are a reflection of the risk your business represents to an insurer. Taking steps to lessen the likelihood of you needing to make a claim may enable you to secure appropriate cover for less.
Shop around for value
The insurance market is competitive, and it pays to shop around.
But comparing your options and haggling for the best price can be time-consuming. Working with a broker takes the hard work and hassle out of the process
Bundle your policies
Many small businesses offer substantial discounts to customers who buy multiple different products or purchase in volume. Insurers do the same, which is why it can pay to bundle your policies with a single provider.
Workers compensation is an exception and cannot be bundled with other insurance. In some states, this insurance is managed by a government insurer who has a monopoly. Often, the rates are prescribed and claims history is the only factor that can affect the rate positively or negatively
Review your excesses and limits
It’s possible to reduce your premiums by increasing your excesses – the amounts you agree to pay when you make claims on your policies.
Similarly, it can pay to review your policy limits – the maximum payouts you’ll receive if you make a claim. We can help you ensure they’re commensurate with your risk profile and not excessive for your circumstances
Maintain a good claims history
A record of frequent or sizeable insurance claims can push your premiums up significantly. Prioritising workplace health and safety, implementing rigorous incident reporting procedures and taking steps to mitigate potential risks as you become aware of them can help you maintain a clean claims history
Securing the best cover for your business
Reviewing your insurance regularly will help you determine whether it represents value for money for your business. We can help you evaluate your requirements and source value-for-money policies that fit your risk profile.