For years, Australian businesses have benefited from affordable insurance premiums due to the soft insurance market. However, experts warn, it’s time for a change.

Yep! They say that more expensive premiums, narrower coverage and higher excess are set to become a reality for many Australian businesses. Why? They say a string of natural disasters and the residual effects of the economic downturn have been the main causes for this change in the insurance industry cycle from soft to hard market conditions.

How can businesses prepare for the change and reduce the cost of their business insurance? Here are some of the top tips from insurance experts.

Take a more active and strategic approach

As underwriters are becoming more and more active and strategic in their approach. It’s important for you to do the same in your business.

Start being more conscious of your business’s financials i.e. paying your bills on time and take a more active and strategic approach to managing your company’s risks and insurance claims, such as starting your insurance renewal process earlier, both on a commercial and personal level.

Secure higher policy limits, now

Think you may need more cover for your business in the future? Increase it now. Not only is it likely to be cheaper, with underwriting getting tougher and more stringent, it’s likely to be easier too.

Your insurance broker may also be able to lock in future renewals on a favourable basis – having a solid, longstanding relationship with an insurance broker always helps.

Budget for increased costs

The cost is going to be significant. So, businesses must budget for the increases if they want to maintain their cover.

Don’t have a good relationship with an insurance broker yet? Why not start one?

Grace Insurance is located in the northern suburbs of Perth and is here to help you with your business insurance needs.

Contact us and find out how you can reduce your business insurance costs today.