We often see an increase in insurance product purchases in May and June in the lead-up to the end of the financial year (EOFY). This is a savvy move by business owners for a number of reasons.
If you haven’t purchased business insurance for your business or have the cover you haven’t looked at in a while, make EOFY the time to look into these areas.
Here are three reasons why:
- EOFY is the perfect time to audit your business: The year can easily get away from business owners and there are always too many things on your plate. Using EOFY as a time to prioritise key areas connected to your business can give you the deadline you need to get things done. These tasks don’t need to be arduous, either. Technology platforms are simplifying decision-making and serving up relevant information and advice in seconds. Consult an expert and set some time aside in your calendar to focus on the key areas in your business, including business insurance.
- Maximise your tax deductions: Purchasing an annual insurance policy before EOFY will allow you to claim the expense back when it comes to tax time. You could even do this even if you choose to pay monthly. Depending on the insurance you purchase, it may work out better for you to pay an annual figure that you can claim back soon, or you may want to opt for a monthly payment option that better suits your cash flow. Consider what’s available and what works best for your situation.
- Check that you’ve got the right cover: Business insurance can help protect your livelihood and your business if an incident or accident occurs. If you don’t already have cover, utilise EOFY as a time to look into the risks in your business and the appropriate cover options for you.
Chat to an insurance broker or get a quote online and ask an insurance representative questions to determine the right cover option for you. Some things to consider are:
- Review your existing insurance – do you have any legal, professional, or contractual requirements that require a particular type of cover?
- Simply speaking, what risks does your business face? Do you have a management team or board that want to be protected? Do you need cyber insurance for your next contract or deal? Do you utilise a car for work purposes and you only have a personal car insurance policy?
- What cover do your colleagues, or other industries in your profession have? This can help you find the best tailored product for your business or services.
- Consider the limits you require – contracts you have with others or professional requirements sometimes help you know which limits you might need, otherwise, chat to an insurance professional to gauge the limits best suited to you.
- Look out for inclusions and exclusions that are relevant to you.
- What is enough? Having public and products liability insurance may be enough if you provide goods and services, however if you are providing any form of advice then it may be necessary to have professional indemnity insurance too.
If your business is growing and you now have employees, and senior managers it might be worth looking into management liability insurance. This insurance blends cover for yourself as a director or officer, and your senior management team from potential litigation, plus employment claims, investigations, white collar crime, tax audit costs and even investigations from possible breaches of statute like WorkSafe, or Fair Work, or the EPA.
At the end of the day, every business is different and business insurance needs vary drastically, so always consult an expert to determine the best cover options for your business’ risks. The upcover platform is Australia’s fastest insurance for small businesses, so if you want to look into what options are available for your industry, jump online for instant quotes.
At upcover, we help Australian small businesses proactively manage the risks in their businesses with simple, easy business insurance products.
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