The price you pay for small business insurance can vary by thousands of dollars, depending on how active your insurance broker is and which insurer(s) they recommend. Here are some things to consider when buying small business insurance. They might save you a considerable amount of money.
The best way to save money on small business insurance is to shop around. When you bought your business insurance policy, it may have been the best-priced business insurance policy at the time. Since then your insurer may have increased their prices while others may have reduced theirs. You may well be paying above market rates and your insurance broker may not be too concerned because they are paid up to 30% of your premiums. The best way to find out if you are paying the right price is to get quotes from several insurance companies.
If your small business insurance is due soon, you will have received a renewal notice from your insurance broker or insurance adviser. Jump onto www.insureonline.co.nz to get a small business insurance quote. Then you can compare prices against those provided by your current insurance broker and switch, if you can save money.
Buy Your Material Damage, Business Interruption and Liability Policies From the Same Place
Buying a business insurance packaged product for your small business can often be more economical than buying separate insurance products from different insurers. Besides, it makes it easier to manage your small business insurance when it comes to insurance renewal time and when you have a claim. It also simplifies record keeping.
Reduce Your Exposure to Insurance Claims
Find out what steps you can take to make your business more resilient to insurance claims. Do you have a burglar alarm installed on your premises? Is it monitored by a professional security firm? Are your business premises old and therefore exposed to higher earthquake premiums? Are you in a flood prone area? Is your business situated on soft ground?
Older buildings will cost more to insure for earthquake insurance cover, so, when renewing your lease and looking for reasons to upgrade your premises, consider moving to more modern premises and install a monitored burglar alarm too.
Go for a Higher Claims Excess
Claims excesses, or claims deductibles, are the amount of money you have to pay toward a small business insurance loss before your insurance company pays a claim. The higher your claims excess, the more you can save on your small business insurance premiums. However, it can be a balancing act. A very high claims excess will mean you will be out of pocket on most claims and your insurer will pay less per claim. A claims excess of $500 for standard insurance (non-earthquake) is reasonable. If your claims excess is lower, consider taking a higher excess in order to reduce your small business insurance premiums.
Review the Limits in Your Small Business Insurance Policy and the Value of Your Business Assets Every Year
Small businesses change a lot in a year or two and it is easy to find yourself insuring things you no longer have or need and not insuring new additions or risks. Additional employees, higher sales and turnover as well as changes to business costs are factors to consider when reviewing your small business insurance.
A review of your small business insurance policy schedule or renewal notice will give you a good picture of your current sums insured or policy limits. Updating these may save you money and, more importantly, will help ensure you have the right small business insurance for your business.
If you’re interested in saving money on small business insurance anywhere in New Zealand, get a quote and buy online in less than 30 minutes. Compare it to your current insurance and switch. You may save money and get a better small business insurance package that matches your current business needs.