Here are some suggestions you can consider as far as making changes to your covers to reduce expenses.
- Increasing the standard policy excess. Consider $250 to $500 or $500 to $1,000, or maybe higher
- We do not recommend that you reduce sums insured on key policy sections, particularly Fire and Business Interruption. These classes of cover are subject to under insurance/co-insurance clauses, which could cost you dearly in the event of a loss
- Do not remove statute covers such as; Public Liability, Professional Indemnity or Workers Compensation
- Consider premium funding on renewal – to further assist with cash flow
- Consider dropping some covers you may have which, whilst important and convenient, in the event of a loss, will not largely impact your business in the long term.
For example,
- Glass replacement- if you have a lease Agreement, potentially your Insurance premium have doubled in this regard
- Money – this typically covers cash; how many still deal in cash?
- Machinery/Electronic breakdown – this can be an expensive cover. It may be cheaper to have a good maintenance agreement to avoid breakdown
It is said that ‘desperate times call for desperate measures’, and this can be the case when the economy goes into a downturn. When unemployment rises, insurers typically see an increase in crime related claims.
As a result, we recommend you also consider:
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- Premises security – alarms and locks. Is the level of you burglary cover adequate?
- Cyber security – who has access to computer systems?
- Employee fraud – it might be time to double check the systems you have in place in these uncertain times.
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If there is anything we can do to help you during this uncertain period, please reach out either via email at insure@coveritinsurance.com.au or call us on 03 9847 0863.
