|Insurance Buying Tips #1: Shop smart|
|When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.|
|Insurance Buying Tips #2: Look for discounts|
|Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.|
|Insurance Buying Tips #3: Fill in the gaps|
|An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.|
Aside from your loyal Kelpie, your Tools are your most trusted and valuable assets. You need them to do your job and keep the cash coming in. If they were suddenly stolen, burnt in a fire, or damaged in a transit accident, what would you do? Do you have the ability to borrow tools to keep working, or the savings to buy more at the drop of a hat? If you don't, then consider a business tools insurance policy to protect your assets and ensure you can keep earning into the future.
What's the difference between Business Contents and Business Tools Insurance?
Business Insurance is a broad term and it can be quite confusing figuring out exactly what is and isn't covered under different policies and cover sections within those policies.
If you have basic 'Contents' Insurance for your Business, it may only be the 'Property' section of the Business Package policy, meaning that will generally only cover perils such as Fire, Storm and Malicious Damage. Theft or Burglary is a separate section under a Business Package policy, and a more expensive coverage too, so unless you have this section selected, you could be exposed in this area.
A big aspect of coverage commonly neglected under Business Package policies is the transit risk. This is when you take your tools, stock, equipment etc. out on the road to work on site at your client's premises. Generally, the 'Property' and 'Theft/Burglary' sections on a Business Package policy will not cover the transit, or damage to the tools, stock or equipment away from your Business premises.
This is where a Business Tools Insurance policy, referred to as General Property in some cases, differs from the aforementioned covers. It picks up the transit risk, responding to damages occurring to your tools, stock or equipment while driving: think of a third party rear-ending your vehicle – a common example.
|Insurance Buying Tips #4: Purchase life insurance—you aren’t too young|
|Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.|
|Insurance Buying Tips #5: Talk to an independent agent|
|An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.|
|Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living|
|You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.|
Secondly, Business Tools Insurance will generally cover Theft from a locked vehicle or premises Australia Wide. This is a very important distinction to be aware of. With this coverage selected, your tools will be protected not only at your place of Business, but at home or at a colleague or friends house whilst in a locked vehicle or garage, and similarly while locked up on the job site. Keep in mind that storage must be locked and inside premises, not chained to a pole or a container with a padlock.
Your Sum Insured
Now you have a grasp of the basic coverage that Business Tools Insurance offers, it's important to be aware of common policy conditions. A big one where people commonly come unstuck is called Under or Co Insurance. Insurers impose this condition to combat deliberate under and over insurance. Without getting too technical on the details – there are percentage formulas, depreciation factors and all sorts of other variables that come into play in claim scenarios – the simplest way to ensure this will never be a problem for you is by following these two steps:
1. Conduct a basic annual inventory to assess your sum insured prior to renewal of your policy
2. Ensure to alter your sum insured throughout the year should you buy and new or sell any of your existing equipment.
By following these steps, you will always be within the realms of reasonability with your sum insured. Couple this with some happy snaps, receipt copies, or filed manuals to act as proof of ownership, and in the event of a claim, you won't have any dramas with process.
GoGet offer a great value Business Tools Insurance policy offering a broad range of cover while keeping the cost low and the process easy. Visit gogetinsurance.com.au today to secure a quote today.
Ensure that you read the PDS of this and any other insurance policy prior to purchase, so that you know what is an isn't covered in the event of a claim.
|Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover|
|Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.|
|Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier|
|here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.|
|Insurance Buying Tips #9: Review your insurance needs on a yearly basis|
|As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.|