By Guest Contributor, Phillip Carr
UPDATED: January 21, 2018
Small Business Insurance Quote -- Whether you are a small business, a not-for-profit, or a large multi-national conglomerate, the one thing that every business has in common is the need for adequate insurance. The type of insurance each business needs varies according to the nature of the business and the location.
One thing is certain, business insurance is not cheap, even for the small business insurance quote. Yet, it is also an absolute necessity as the consequences of operating without adequate insurance coverage does not bear thinking about. An entire business can be destroyed in a moment through lack of appropriate risk coverage. Years of hard work gone down the drain in the blink of an eye.
Insurance is big business and Australian businesses spend billions of dollars annually on insurance premiums. In fact, for some small businesses, insurance costs are almost as much as their tax liabilities when they see their small business insurance quote.
The rates may vary from company to company, but along with the varying rates, the standard of cover can suffer.
Although the insurance company is there to provide a safeguard for your business, via your insurance policy, they are there, first and foremost to make money for themselves. Insurance companies make money by charging for every risk that is likely to occur in any given business.
Most business insurance policies start off as blanket policies with standard wording. The worst case scenario is used when calculating the risk and this is reflected in the premium quoted.
It is also important to note that it’s arguably a misnomer to say that insurers price risk as many do not. Rather, they price their perceived risk.
Insurance is basically transferring the liability for the business risks to the insurance company. It, therefore, makes sense that once the risk is reduced or completely eliminated the insurance company has less exposure because a claim against the insurance is less likely to occur.
What is not commonly known is that in many cases it is quite possible to greatly reduce your business premiums without sacrificing the coverage you need. Of course, this is not something that the insurance company is going to tell you.
In other words, if you, or your broker put a compelling case forward as to your background, your experience, your risk management etc., you will often be treated a lot more favourably by any prospective insurance. This is especially helpful to small businesses that wants the relevant cover but also a reasonable small business insurance quote.
The good news is that by managing and, in some cases, completely eliminating risks it is entirely possible to substantially reduce your insurance costs.
It is not difficult to reduce your risks. However, it is important to understand that it is not enough to just identify risks. Risk management needs to be documented and translated into action.
A risk management plan needs to be understood by everyone involved in the business. It cannot be seen as a laborious, time wasting exercise. Involving employees in identifying and minimising the risks ensures they have a vested interest and active buy in.
A business needs to be able to demonstrate to the insurance company that the risk has indeed been mitigated. The consequences of inattention can be severe and the financial benefits of positive, proactive attention potentially financially rewarding.
on-boarding all employees through a formal orientation
By adopting a formal on-boarding system, no matter how small the business, you are exercising due diligence, reducing the risk of misunderstanding, errors and accidents.
2) Ensure employees have appropriate skills
and training for their roles
This should also include making sure all certifications and credentials for employees are kept up to date in their personnel files.
If employees are members of a professional association and regularly involved in continuous professional development (CPD) their skill levels will be enhanced and best practice procedures are more likely to be employed at all times.
3) Review and
improve security within the business.
This can include items like security screens, deadlocks, unbreakable glass, regular external back up of data, a policy for cash handling and staff safety are just a few of the many areas that a business can look at.
4) Schedule an annual review of your insurance
and risk management policies into your business calendar.
This should include ensuring your Workplace Health and Safety Standards (WHS) are compliant and in line with your industry standards.
procedure and operations manuals to reflect any changes in legislation and/or
the way the business operates should be included as part of an annual review.
A business needs to be committed to an ongoing and continuous review of risks. This protects both the business owner and the insurance company. It is through controlled risk management that business insurance premiums can be kept as low as possible without reducing the levels of cover needed to protect your business should a claim arise. This applies equally to smaller businesses that want the lowest small business insurance quote.
It is not enough to have policies and procedures written down. These need to be living documents that all employees are aware of and abide by. Everything that a business does to reduce risks should be in line with the risk management plan for that business.
If you are unsure if your current insurance meets your needs or just want a second, third or even fourth opinion; then please get in touch today for a free, no obligation consultation and make sure all your insurance needs are in Safe Hands.
Note: Phillip Carr is the Managing Director at Safe Hands Insurance Pty Ltd - www.SafeHandsInsurance.com.au
Phillip contactable on 1300 744 442 or email email@example.com *
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