Priority insurance policies for the construction industry
In this article, we’ll explore construction works, product and public liability, business vehicles, material damage, and workers’ compensation.
The gross written premium for general insurance jumped 8.7% in the 2020-21 financial year. This includes commercial policies. With such a hardening market for premiums, how can you minimise the anticipated premium rise this financial year?
Insurers calculate premiums by reviewing the risk factors of your business as well as those in the broader economy. Many reasons underpin the premium price rise, even if you haven’t recently claimed on your insurance. Those factors include:
As well, insurers’ costs are very cyclical. There may be regional and global changes impacting the price and availability of reinsurance. That’s cover insurers take out to protect themselves against their exposure to the risk of disasters or other significant events. So premium changes reflect the insurer’s cost of doing business.
It makes sense if your business puts in place measures to reduce its risks. This will lower the risk of you claiming on your insurance. In this case, insurers are more likely to agree to a lower premium.
Try these measures:
Keep your staff updated with their work safety training, and program regular refreshers. As well, make your mark on the workplace culture by encouraging healthier behaviours such as a no-smoking policy, offering perks such as on-site yoga classes or gym memberships. These moves could indirectly impact upon the wellbeing of your staff and therefore reduce health-related workers’ compensation claims.
If your cashflow allows, pay your insurance premiums annually rather than monthly. Paying yearly saves you up to 8%; half-yearly, up to 3%. However, not all insurers penalise you for paying monthly; we can check the difference for you at renewal time.
Get into the practice of reviewing your policies at least quarterly, and when you:
You could save money by updating your insurance cover. For example, if your revenue is slimmer than expected, then updating your policy accordingly could earn you a part-premium refund.
Give these ‘nips and tucks’ a go to ensure your insurance cover is the best fit and you’re not paying a higher premium than needed. Be sure to reach out to us for further guidance to customise your policies to your current circumstances. Often, bundling your insurance policy in a package through us will deliver an extra discount. That’s a great move to ensure your policies don’t overlap.
You’re now up-to-date on how to minimise your hit from the anticipated premium increases. Time to update us.
Article supplied by OneAffiniti
Photo by Luba Ertel on Unsplash