A smart approach to insurance savings

We recently touched on the effect that the GFC has had on Australian businesses.

We have been lucky in this country, in large part due to the booming resources sector, and continue to enjoy relatively high employment and economic activity.

Yet no market has escaped completely unscathed and that has meant challenges for many companies due to reduced consumer spending.

One of the most common consequences across all industries has been a retrenchment of sorts - a tightening of the purse strings.

In such times, nothing seems to be off the table when it comes to cutting expenses, including the important covers put in place to protect business assets.

However, David Powell of Elders Insurance Metro Melbourne says that an unconsidered approach to trimming back insurance covers can compromise the protection of a business.

What he advocates, and what he helps his customers to implement, are smart strategies to reduce their insurance costs without losing important covers.

Opting for higher excesses and consequently lower premiums is one such approach.

Mr Powell says this can be an effective strategy for businesses that aren't frequent claimants and are not worried so much about smaller claims, but are more concerned with looking after the big ticket item - being able to cover the costs of repairing fire damage or other significant events, for example.

Another option is to reduce the sums insured on business insurance theft covers by improving the security of the business premises.

This takes the risk away from the insurance company, saving money on cover costs and improving peace of mind all at once.

Businesses that wish to find responsible ways to save money on their insurance should contact their local Elders Insurance agent today.

"We can play a role in suggesting where insurances can be trimmed back in a way that is not to the detriment of the business," explains Mr Powell.