10 tips to save money on
TRADIES INSURANCE There are plenty of tradie memes about clients who choose the lowest quote. Typically it involves a picture of terrible building work! But the fact is that most people are looking for a cheap quote, and that includes tradies looking for business insurance. When the client chooses the cheapest quote What’s important of course is to find the most competitive quote for quality insurance cover that suits your business. Whether you have Trade Risk do this for you, or you choose to go DIY and shop around yourself, these ten tips should help you to save money on your trade insurance. The first five tips relate to starting a new policy, and the next five relate to existing policies and renewals.
When starting a new policy If you’re starting a new business insurance policy, chances are you’re starting a new trades business. Cashflow is so important at this point, so saving money on your insurance is vital. These five tips should help get you started. 5. Don't assume direct is cheaper This is probably the biggest mistake that tradies make when trying to save money on insurance. They assume that going direct to a big brand insurance company, like NRMA or AAMI for example, will get them the cheapest quote. We’re so used to doing this with our home and car insurance, that it just seems to make sense. You get
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a few quotes from the big guys, choose the cheapest and you’re good to go. Business insurance can be more complex in terms of pricing, and the big guys with their online quotes and call centres aren’t necessarily the cheapest. Extend your search to some of the smaller players, and especially the trade specialist providers. We can provide instant online quotes for standard trade businesses with up to five staff, and you’ll find the rates are typically more competitive than the big name brands for similar (if not better) cover. PS. We help plenty of trade businesses with more than five staff, it’s just that we provide more tailored quotes for these clients rather than quoting them instantly online.
4. Pay annually if you can Whether you go direct to an insurance company or via an insurance broker, paying monthly will cost you more. Sometimes it’s worth it, especially with cashflow being a constant challenge for many trade businesses, but keep in mind that the overall cost will be higher. With the direct insurers, generally they just increase the overall premium. So if you multiply the monthly payment by twelve, the total would be higher than the annual premium. If you use a broker, generally the premium will stay the same, but you’ll be charged interest via a structure known as premium funding, or premium financing. In this case the funder (typically a third party) is essentially lending you the money to pay the premium, and you then pay them back over 10-12 months depending on the setup.
