|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.|
Are you organising Public Liability insurance for your new business, or requoting your current insurance renewal?
The rigmarole of sorting your paperwork, reading through policy documents and organising a Public Liability Insurance Quote can take a lot of time, particularly when you've got a business to run.
You want to do it once and do it right.
But what sort of things should you look out for on a Public Liability Insurance Quote?
Let's take a look at a few of the most important.
1. Products Liability
Ensure that any quotes you receive include Products Liability alongside your Public Liability. What is Products Liability? You mightn't think it's relevant if you don't sell products, but what it's referring to is your completed work.
As a tradie, your product is your job done. For Carpenters, that might be the handrail you installed, Plumbers; the hot water line you put in, Electricians; the kitchen down lights you hooked up.
If a claim arises from this completed work that causes property damage or third party injury and you get dragged into legal action, this would likely be a Product Liability claim.
A Public Liability Insurance Quote that doesn't include Products Liability simply isn't protecting you properly.
2. Goods in Physical or Legal Control
If you have any of your Customer's Goods in your control at any point while conducting work for them, then you need to ensure any Public Liability Insurance Quote you receive includes this coverage.
This is particularly relevant to Appliance Repairers, Handymen, and any tradie who takes their customer's goods to a workshop for repair.
|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.|
3. Vicarious Liability and Principal's Indemnity
In simple terms, this cover extension protects you from a problem that another subcontractor causes.
This is a particularly important cover when organizing a Public Liability Insurance Quote, considering the 'shotgun effect' of most legal actions these days, where anyone can get dragged into a dispute, not matter how small their involvement.
4. Tax Audit
At imar, we find a lot of clients are unaware that this coverage exists.
A standard Public Liability Insurance Quote will likely not include this cover, however some policies, such as our imar Trades Package, include it as standard.
It's a great additional benefit that enables you to claim the costs incurred froma Tax Audit by the ATO (Australian Taxation Office) – generally your accountant's preparation fees. For an average sole trader, these fees could range from a mere $2,000 to well over$10,000.
5. Customers Goods in Transit
This extension is particularly relevant and important to tradies. It's a valuable extension on any Public Liability Insurance Quote.
Public Liability Policies will generally exclude anything in connection with a registered motor vehicle. This is why motor vehicle insurance includes it's own liability cover.
Gaps in cover can occur with crossovers such as this. For tradies, this could be important when transporting a Customers Goods- a landscaper with some plants, or a carpenter with some cupboards – and an accident occurs during the transit.
This is a valuable extension that a lot of tradies don't know about, but could save you and your client a lot of money and stress in the event of an accident.
At imar, we include all of these covers as standard in our Trades Insurance Package. Visit imar today to speak with on of our experienced Client Managers and organise the perfect Public Liability Insurance Quote for your business.
|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.|