What can influence business insurance premiums Australia?

Ever wonder what factors will influence the cost of iSelect for business insurance premiums Australia? We are going to discuss a few of them on this page.

 

Location of the business

 

The location of your business will have a huge impact on your insurance premiums. If the crime rate is high an area, your premiums will go up. If there is a high risk of natural disasters, then your premiums will go up. If you own the property, then the insurance will likely be higher than if you were renting.

 

Stock

 

Lots of stock? Your insurance will cost more than a company that just runs on a few computers.

 

Revenue

 

The higher your company’s revenue, the more you will be paying for your business insurance premiums.

 

Your business model

 

There are some businesses that will be inherently riskier than others. For example; the construction industry may command higher insurance premiums than an office-based business. The same as if you need to go into a person’s home. The insurance premiums would be much higher here than if your business was confined to a store.

 

When you are looking for business insurance, you will likely be asked several questions on the way in which you are operating your business.

 

Your excess

 

As with most types of insurance, the higher your excess, the lower your business insurance premiums Australia will be. However; do make sure that your excess is set at a rate that you can comfortably afford to pay if you need to claim on your insurance. If you can’t pay the excess, then you are effectively uninsured.

 

History of claims

 

Insurance companies want to work with companies that do not have a history of making claims. After all, the more claims a person makes, the more money an insurance company would lose. In fact, if you are known for making regular claims, then insurance companies will often price their premiums high in a bid to encourage you to go elsewhere for your insurance.

 

Shop around

 

Remember; there is nothing stopping you from shopping around for the best business insurance premiums in Australia. The internet has made this tremendously simple. There is nothing that says you need to pay ‘over the top’ rates for your business insurance, even if you are in one of the riskier groups.