With the economy in Queensland and around Australia suffering, many businesses are looking to cut costs wherever they can.
One of the easiest areas to make significant savings is business insurance, but it’s important to go about it the right way to ensure you are still properly covered.
To help out we have put together our list of the top four ways to save on your public liability insurance.
Have the right cover
It might not be the first one that comes to mind, but simply having the right insurance in place can be one of the biggest areas for potential savings.
If you’ve had your public liability insurance in place for a few years, you may find that your business needs have changed over that time.
There are all sorts of things that can change in your business that could result in lower premiums. Here are just a few of them:
- No longer undertaking high risk activities
- No longer working at heights
- Reduced staffing numbers or revenue
- Reduced use of subcontractors
- Any other factor which reduces your business risk
If any of these points apply to your business, you may find that your premium will reduce just by letting your insurance company know about the changes.
This is probably the most commonly used method of reducing your public liability insurance costs.
The simple fact is that the business insurance industry in Qld is very competitive, and insurance companies are continually reviewing their rates to ensure they are competitive.
Just because a certain company was cheapest when you took out cover a few years ago does not mean that they will still be the cheapest now.
If you have a good insurance broker they should be doing the shopping around for you, but leading up to renewal time it may be worth giving them a prod to make sure they’re doing their job.
Negotiate on fees
Most insurance brokers charge what is commonly known as a ‘broker fee’ on each policy they issue.
A broker fee is a standard part of the industry, however brokers are increasingly willing to negotiate on these fees in order to save or win your business.
The fee charged can vary hugely depending on the size of your policy. For a sole trader the broker fee may only be $50, but for a large corporation it is not uncommon to see fees in the tens of thousands.
Whatever the fee is on your policy, it is worth asking your broker for a reduction in order to keep you as a valued client.
Paying monthly for public liability insurance is increasingly a popular option for Qld businesses, but keep in mind that it is generally more expensive to paying your policy by the month.
By paying monthly you will often be end up paying between 10 and 20% more for your insurance over the course of the year.
If you can only afford to pay monthly then you may have no choice, but if you can pay annually you will definitely save money in the long run.
For more tips on getting cheaper public liability insurance in Qld please speak with your broker or adviser.
Whatever you do, it is always important to remember that being properly covered is more important than simply getting the cheapest cover. There is no point saving a few dollars on your premium if it’s going to cost you a lot more a claim time.
You can save money and stay properly insured, it just take a bit of work and the help of a good insurance broker.