Tips for saving on tradie insurance premiums in 2023
Chances are your tradie business has been run off its feet lately, due to a skills shortage in New Zealand, with trade occupations such as electricians, carpenters and motor mechanics, notching significant demand.
Being busy means you have less time to review your insurance cover. But when was the last time you checked that you've still got the appropriate cover at the best price possible? With inflationary pressures wreaking havoc on small businesses, there’s no better time than now to dig for much needed cost savings.
Here are some prompts and tips to get you on the right track.
Pay yearly instead of monthly
Paying your premiums annually rather than monthly may usually help you save. Insurance companies generally give you advance notice of increases, so it can be ideal to pay the yearly amount just before that higher fee kicks in.
For commercial or business insurance, you can also choose to take advantage of premium funding. This means your business can pay your insurance premiums in easy to manage monthly instalments.
Choose a package over individual policies
As a tradie, you'll have compulsory and opt-in insurances on your list, which can all add up. Rather than take out separate policies, you can package them together, which is usually the most cost-effective way.
Let us know if your business changes
This is a good prompt to check that your current level of insurance cover will extend to cover your current business operations, size and assets.. Without the right level of cover your business might have to wear the cost of damages or loss in the event of an incident. For example, if you're an electrical contractor doing domestic work, but about to work on a mine site, this significantly changes your risk profile. This would increase your premium, but without it your business wouldn’t be covered, meaning your business would have to carry the risk, possibly even rendering you ineligible to work on the site.
Make sure you check the policy exclusions and limits for each type of cover – do they sound right to you? We can help guide you through the fine detail.
Have the right levels of cover
Are you still covered for the right amount? For instance, if you’ve upgraded your tools and equipment, you might need a higher level of coverage than your current level of coverage.
Or, perhaps you took out $10 million in public liability insurance, but a new contract means you need to increase that to $20 million.
A lower premium does not necessarily mean you'll have lower protection. It's about finding that sweet spot between insurance limits, exclusions and the cover you require.
The best way to prevent your business from overpaying for insurance, while ensuring that you have adequate cover is to take advantage of a broker’s expertise. A specialist trades broker understands your business and the world of insurance. They can properly assess your risks and needs, and draw on their insights and relationships with insurers to match you with the right insurance package, at the best possible price. They can also do the heavy lifting and sort out your insurance package, so you can get back to being busy on the job.