4 Ways to Reduce Your Trade Insurance Renewal Costs

If your trade insurance policies are about to expire, then your insurance company or broker will likely have sent you a renewal quote.  If your quote is higher than expected, now is a great time to see if you can reduce your costs.  While you need good coverage, you don't want to waste money when you could save it.

How can you reduce your tradie insurance costs?

1. Double-check your coverage

Your current coverage is based on your situation when you last took out insurance. You insure yourself for set dollar amounts according to a range of factors.

Your insurer calculates premium costs from the information you give them. This includes factors such as your turnover, the type of coverage you want and your degree of risk.

If your business situation has changed since you last took out your trade insurance, then your costs might also change.  However, your insurance company or broker won't know about these changes unless you tell them.  They'll use the information they currently have to calculate your next set of annual premiums.

However, you can sometimes reduce premium costs because of business changes.  For example, if your turnover has gone down because of COVID-19 or if you have downsized, you may not need as much coverage.

Or, if you're doing well, you might have enough cash reserves to consider increasing your policy excess for a reduction in premium.  You may also consider reducing your premium by reducing your Tools of Trade coverage, if you’ve sold some tools or if the values have reduced.

Plus, if you have reduced your risk during the last year, say by adding extra security features to your vehicles or premises, you may qualify for a discount.  If your valuables are more secure, you're less likely to make a claim, and you could benefit from a reduced premium.

Check your policy wordings to make sure they meet your current needs.  If your situation has changed, ask your insurance company if this will reduce your costs.

2. Bundle your policies together

The insurance policies that protect your business interests won't all necessarily come from the same insurer.  Your core protection might be with one provider but you might hold other policies, such as vehicle insurance, with a different insurer.

There may be some financial advantages to bundling all of your policies with one insurer.  Some insurers give discounts if you add products, such as vehicle insurance, to your core coverage. These discounts could reduce your overall costs.

3. Ask an insurance broker for help

While you can do your own insurance research and comparisons, this isn't always an easy or quick job. You may not have time to assess every trade insurance policy on the market before your current policy expires.  Plus, you may find it difficult to understand all of the policy inclusions and exclusions.

An insurance broker can help you understand the kind of coverage you need.  They will search through current options to evaluate the best products or packages at the most cost-effective price, whilst ensuring your business is fully protected.

For more advice,  contact Westralian Insurance. We can help you find the right insurance package for your business.