Running a business in the Tradesmen industry is not for the faint of heart. You’ve no doubt heard stories from other tradesmen about their experience working with customers who want impossibly low quotes and expectations not aligned to budget.
It’s much the same with tradesmen insurance. Saving short-term money without due diligence will inevitably cost you in the future. The cheapest protection rarely offers you the full cover needed for your business.
The stress of finding the right insurance for your business and keeping your budget green is why many small business owners are trying to find methods to save money with their insurance.
We’ve briefly detailed 6 of the best methods you can use as tradesmen that will have you on the path to choosing the best policy for your small business.
1. Use an online insurance service
Running a business leaves you with very little time to spare, and you often can’t finish all the tasks in one day. Online insurance services, such as Bi-me enables you to complete the quote at your own convenience and time, comparing multiple underwriters and saving you money in the process.
Some major perks of online insurance services are that they will often work with insurers that don’t deal directly with the public. Due to working with multiple insurance partners, they will be able to offer you a range of quotes instantly and provide you with any information that you are seeking.
2. Always compare multiple quotes from multiple insurers
Insurance for tradesmen is not a simple, one-size-fits-all package. It’s easy to assume the best place for a small business would be a major insurance company, finding the smallest or cheapest package available.
If you want to ensure a competitive price and a package that will cover all your business risks, you’ll need to compare multiple quotes from several different insurers.
This is due to the difference in “risk appetite” and all insurance companies have a different sized stomach when it comes to the nature of risk. This means that each insurance company will assess the risk of your occupation type (such as plumbers, electricians, handymen) and price your policy according to their internal metrics.
Some insurers will see plumbers as a good risk and some as a bad risk, and the policies around such will be structured accordingly.
These are just a few reasons why it is so important to have the power of information when choosing your insurance. Comparing policies lets you find the perfect deal, ensuring your business is safely protected and your money saved.
3. Bulk premium payments
As with any payment, monthly instalments always cost more in the long-term and cause you extra expense.
A tight cash flow generally prevents lump sum payments and is bound to the monthly instalment fees. However, if your business has the capital to invest in yearly/lump sum payments – you’ll save your business from extra expenses every year.
4. Buy insurance in packages
One insurance type will not typically be enough cover to offer enough protection. It is often best to take out an insurance package, instead of buying separate policies to cover your most common risks.
In many cases, combining these different insurance types into one policy will create a better premium and save you money.
Existing or renewing policies
5. Update your policy as your business grows
Your insurance policy is most likely structured around several aspects of your business, with the number of employees, your annual revenue and the type of covers just being some of those aspects.
As these aspects play a critical role in determining your premium, it’s best to inform your insurer as you grow and hire more employees, increase revenue or expand your operations.
6. Update your policy as your business operations evolve
The work that you do within your field is another important factor used to calculate the price of your premium. More specifically, it’s the specified type of work that you do within your field.
If your field of work is construction and you generally accept contract work for small residential buildings – and now have work for an industrial airline company, your risks are going to be considerably different and will inevitably affect your premium.
Always let your insurer know of any changes with your business operations. If you have to change your policy for a year to undertake a riskier contract, speak to your provider and alter the details accordingly.
*This is general information only and does not take into account your financial situation, needs, or specific objectives. As with any insurance, cover will be subject to the terms, conditions, and exclusions contained in the policy wording.
At Bi-Me, We’re fiercely committed to the small business community, whether it’s to get a better deal or to assist with a claim. One of our core values is ‘no policy is too small for us’ and we’ll go the extra mile for everyone.
Bi-me business insurance covers small businesses and start-ups the way most insurance companies don’t. For us, no policy is too small. With our simplified online process, you can immediately compare and buy the insurance that will fit your business like a glove.
You can get instant online quotes available 24/7 – for purchasing insurance, making changes to your policy, or getting documents. Our website is mobile-friendly, so you can even add cover while on the move.