3 tips to help you avoid underinsurance

A common problem that many business owners in Australia face is underinsurance. Luckily, it has an easy solution.

Here are three tips to help you avoid this issue:

Ensure you review your business insurance policy regularly.

Once a year is a good idea, or more frequently if you're taking on new employees or looking to sell a new product or service. This can help you identify any gaps in your policy and take steps to remedy the situation.

Your insurance agent can help you with this. In fact, one of the benefits of arranging your policy through Elders Insurance is that our agencies are located all over the country, which means our agents can visit your business in-person and discuss your insurance options with you.

Try to keep up-to-date with how much construction and repair work generally costs in your state.

When people are organising business property insurance and deciding how much to insure their premises for, they often neglect to factor in how much it will cost to repair or reconstruct if and when disaster strikes.

In addition to this, they often have no idea how much construction and repair work will set them back. This changes from one year to the next - according to Street News, the cost of building a new residential property jumped by 7.7 per cent between 1998 and 2008. A commercial property will likely set you back even more!

Elders Insurance agents will have a rough idea of the cost of construction and repair work in your region, but it pays to get a qualified builder to come out and give you an estimate.

Remember that lower premiums are not always better.

It can be tempting to save money by only covering the bare necessities in your business, but this could leave you with significant out-of-pocket expenses if your company is affected by a loss-causing event.