5 Useful Ways to Save Money on Business Insurance

8 June 2017
 Categories: Finance & Money, Blog

Business insurance can be essential if you want to ensure that your business is financially protected from everything from fire to theft to liability. In some cases such as dealing with company cars, business insurance is even legally required. Although the expense is necessary, you don't want to spend more money than you need to.

Here are some tips on saving money.

1. Consolidate Your Plans

In many cases, you may have multiple policies for your business. For instance, you may have a vehicle policy for business cars, a liability policy for the business itself and coverage on your building.

Although some insurers specialise in one type of coverage, many offer wide range of policies, and in most cases, when you bundle multiple policies from the same company, you receive a discount. If you currently have multiple policies from different companies, you may want to check into how much you would save by consolidating plans with a single company.

2. Do an Annual Check-up

Whether you use one or multiple insurers, make a point of going over your policies annually. You may discover that you have coverage that you don't need, and dropping it can help you save. In other cases, you may find that you need to add additional protections, which drive up the cost of the coverage but hopefully save you money down the road if something happens.

3. Increase Your Excess

The higher your excess is, the lower your premiums are. As a business consumer, you have to strike the right balance. Ideally, you want premiums are low, but you also have to ensure that the excess is an amount you can handle. If the excess is so high that you can't pay it, your coverage becomes almost worthless.

4. Improve Your Business or Personal Credit Scores

Your credit score can also affect your premiums. If you're an independent contractor, the insurer may take your personal credit score into account, but if you own a small incorporated business, the insurer may use your business credit score. According to some estimates, 90% of business owners don't even know what their credit score is.

Figure out what your score is, and take steps to improve it by paying down debt and making loan repayments on time.

5. Minimise Claims

When you make claims, your premiums go up. Take step to reduce claims by training employees in safety techniques and ensuring your business is clean and safe to prevent customers getting hurt and holding you liable.

For more information, contact companies like National Corporate Broking Pty Ltd​.