Updated: Apr 2, 2018
As a freelancer or business owner, your income pays for everything, from household bills to business expenses. Every cent counts.
Even if you are on a shoestring budget, you can have sufficient insurance coverage if you plan carefully. Here are some tips on how you can save on insurance premiums for your business.
With the savings made, you could channel more funds to other areas such as your retirement pot!
1. Start by identifying the insurance that your business needs
The types of insurance that you’ll need depend on the risks that your business is exposed to.
If you perform outdoor filming or photography, and are concerned about causing damage to 3rd parties, you may need a Public Liability policy. If you produce written or graphical work, consider if a Professional Indemnity policy is necessary. If you own equipment, an Equipment All Risk policy, which protects against accidental loss or damage, could be important. If you travel overseas for work, you may need a Corporate Travel policy.
2. Negotiate for an Insurance Package
After identifying the types of insurance that your business needs, get your insurance consultant or broker to negotiate for a package price. You’ll appreciate the convenience of having one renewal date for all your business insurances.
3. Whenever possible, get Annual insurance
Getting one policy that covers all business activities in a year, rather than multiple policies for each project that you undertake can make huge savings. This is because insurers charge administrative and underwriting fees for each policy that they issue.
4. Trim off what you don’t need
If you are insuring equipment, focus on the important pieces, which are usually the ones you use the most often. Leave out old equipment that you plan to replace.
If you hardly travel with your equipment, get an annual plan that covers you locally, instead of paying additional premium for overseas coverage.
Should a client require you to travel (with your gear), you may get the insurer to issue an extension and pass on any extra costs to the client.
5. Whenever possible, pass on the costs to the companies that engage you
You can include insurance as a line item in your quotation to clients, which is what some media professionals are already doing. In fact, clients may feel assured knowing that contingencies are taken care of.
Should you be handling equipment that are rented or owned by the company that have engaged your service, find out if these items will be insured, and should damage occur, who will be held responsible. Be sure that such matters are clearly defined in a written contract.
6. Join an Association or form your own groups
Freelance professionals may faced difficulties such as payment issues, lack of employment benefits and medical insurance. It may be worthwhile to join an association that provides you with support in these areas. Many associations provide insurance covers as a benefit to members.
You may also gather a group of professionals of the same trade & get insurance as a group. Groups are able to secure better premium rates through bulk purchases.
There are associations that reach out to companies too. Drop us a note to find out more.