Hello, my name is Pete. I live in Sydney with my wife and our pet dog. I had never been much of a fan of having to pay for insurance. It seemed like a waste of money. However, my view on insurance completely changed after a severe tropical storm caused the ground floor of our home to flood. Thankfully, the month before this happened, my friend who works in the insurance industry had convinced me that I should take out a policy. He helped me find the best one for my home and as a result, I was able to claim for the flood damage to my home. I decided to start a blog to encourage others to consider taking out insurance.
Whether your business is large or small, finding the right professional indemnity insurance is often a legal requirement. As no two businesses are the same, the cost of purchasing a plan can vary depending on your day-to-day operations. Fortunately, there are easy ways to lower your costs and still meet all legal requirements.
Take a professional approach to your application
When your insurance's underwriter first looks at your forms, they'll treat them as a representation of how professional your business is. By taking a slow and steady approach to your application, you're more likely to look organised and reliable. In contrast, messy forms that lack the right information scream that your business isn't well organised or reliable. By looking more professional, you increase the chances of your underwriter offering you a better rate.
Aim for a high deductible
Like any other form of insurance, professional indemnity comes with lower monthly costs when you aim for a high deductible. When choosing your deductible, however, consider whether you can realistically pay it if you need to make a claim. Focus on creating the right balance between ongoing overheads and surprise payments that could crop up.
Tell the insurance company about your risk-reduction measures
When underwriters and companies make decisions regarding the cost of your insurance, they do so based on the information you give to them. If your risk-management measures are strong, but you don't tell the underwriter about them, you may miss out on lower costs.
Keep a clean no-claims record
It's always tempting to make a claim the second an incident arises. While doing so means you're spending less in the short-term, you will increase your monthly payments when the time comes to renew your policy. If you do encounter a scenario where you could claim on your insurance, consider whether you're in a position to pay for repairs or damages yourself. Offset the potential short-term costs against any rise in your insurance that may occur afterwards. If you can shoulder the burden now, your overheads may be lower in the long-term.
Don't rush to the first policy you find
From comparison sites through to underwriters, most sources of insurance will present different costs to each other. Rather than rushing to buy the first policy that looks promising, take a step back and consider what it's offering. Peruse the policy and determine whether it meets your business's needs. If it does, find similar plans and consider negotiating for lower prices.
With a little effort, you can find professional indemnity insurance that is cost friendly and able to support your organisation
Share5 June 2018
