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7 Reasons You Should Review Your Business Insurance this Financial Year

7 Reasons You Should Review Your Business Insurance this Financial Year
7 Reasons You Should Review Your Business Insurance this Financial Year

The end of the financial year is fast approaching, which means money is on everyone’s mind. Although business insurance might not be the first thing you think of, there are several good reasons to review your cover before June 30.From investing in new equipment to cutting costs, your Perth insurance broker plays a significant role in planning for the next financial year.Here are 7 reasons to review your business insurance policy with your broker to ensure a strong start for the next financial year. (If you’re reading this after June 30, you can use it to plan for the next financial year).

1. Reducing your business insurance costs

Most businesses choose the end of the financial year as the time to review company finances.After a tough couple of years, small businesses will likely be looking to save costs.Business insurance is one place you could make meaningful cost savings while also improving your policy.For example, if your business grew quickly and bolted on insurance policies, you may be able to bundle your cover to reduce the premiums.Or, if the company was one of the many affected by a shaky global market over the last couple of years, you might be overpaying for cover you don’t need.Additionally, there could be new insurance products in the market that suit your company.An experienced insurance broker can review your policies to advise whether the premiums, packages and products are right for you.

2. Your workforce has changed

Workers’ compensation insurance premiums depend (in part) on the size of the workforce.More accurately, insurers look at the total wages paid by the company when calculating workers’ compensation premiums.So, if your workforce has grown or contracted, your workers’ compensation cover will need to be updated.As you collect and distribute group certificates at the end of the financial year, check the wages against your business insurance to see whether they align.

3. You have invested (or want to invest) in new equipment

The changing financial year is often a time to budget for major business purchases.And tax time is when equipment depreciation costs become important.Both scenarios – budgeting for new equipment or depreciating existing assets – affect your business insurance policy if you have plant and equipment insurance or tools insurance.These types of business insurance cover the equipment you use every day for costs relating to theft, loss and damage.Updating your plant and equipment insurance or tools insurance means you can go into the next financial year confident that if anything happens, you can get back to work quickly with no out-of-pocket expenses.

4. The business has moved or renovated

You or your insurance broker probably updated your business insurance policy if you moved premises during the year.However, with property values constantly fluctuating, it is worth reviewing its insured value to ensure your property and equipment insurance policy is up to date.Similarly, renovations will likely increase the value of your premises.But your insurance policy will not automatically reflect the change.As you review property values and renovation tax claims during EOFY, work with your Perth insurance broker to update your business insurance policy accordingly.

5. Revenue is changing

Business insurance premiums are likely to change as income changes.This is true for all businesses: sole traders, SMEs, growing companies and large corporations.In particular, your business interruption insurance policy should reflect revenue changes.Business interruption insurance covers lost profits if the company is forced to close due to a natural disaster or government mandate.An outdated policy will not pay enough compensation if revenue has increased over the last financial year.And if revenue fell, you could be eligible for a reduced premium.

6. You are using subcontractors

Bringing on subcontractors is usually a sign that business is booming and you need extra hands.That’s excellent news – mostly.However, you may be required to provide workers’ compensation insurance for subcontractors.If your company is responsible for subcontractors’ insurance and not providing the right cover, you could be risking severe financial and legal penalties.An experienced Perth insurance broker can help you unravel the complexities of workers’ compensation insurance to make sure you have the appropriate cover.

7. The nature of your work is changing

It’s common for small businesses and service providers to evolve as they grow.Adding new revenue streams is a calculated risk.One of the factors in the calculation is whether the business insurance policy covers claims relating to the new business activity.For example, if a transport and logistics company begins renting out storage space, they may need to review their business insurance policy.Or in the case of aviation insurance, UAVs (drones) are a relatively new area of insurance that is still developing.The end of the financial year is an opportune time to work with your Perth insurance broker on these tricky questions.They are up to date on the latest legal requirements and insurance products.

Is your business insurance policy up to date?

Reviewing your business insurance is a straightforward task with a lot of potential benefits.If you discover you can reduce your premium or obtain cover for new business activity, it’s time well invested.So, where do you start?If you are looking for a Perth business insurance expert to simplify your policy, Connect Business Insurance can help.Our local insurance experts understand the unique challenges facing small and growing businesses.We can help you review your insurance policy in light of changes over the last two years and plan for the future at the same time.Or, if you prefer you start the process independently, our business insurance brokers would be happy to hear from you once you have made those all-important insurance decisions.Whenever you are ready to talk to a Perth business insurance broker who is genuinely on your side, we are waiting for your call.

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