What you should know about excess

If you are in the market for some business insurance, there are a few things you ought to know about how the cost of your policy is calculated.

The cost of the premium - or, the amount you organise to pay your chosen insurance provider for your policy - is dependent on a few factors. One of these factors is called an excess.

An excess is the amount of money you (and not your insurance provider) might be required to pay if and when you make a claim.

For example, if you have an excess of $800 and you make a claim, you will have to pay the initial $800 worth of losses. Your insurance provider will pay everything that exceeds this amount.

If the total amount you make a claim for is less than your excess, you will not receive a payout from your insurance provider.

Basically, the lower your premium, the more you (and not your insurance provider) will have to pay in the event that you make a claim.

The reverse is also true; if you have a higher premium, your excess will most likely be lower when you make a claim.

At Elders Insurance, we can help you find a policy that will best suit the needs of you and your business.

You can have different excess levels for each and every element of your insurance policy, if you so choose. For instance, you could have a low excess level on the business liability insurance section of your plan and a much higher excess level on the business property insurance section.

Ideally you will pick an excess that reflects what you can afford to pay without having to close the doors to your business in the event of a claim.

In the end, it's a balancing act and it all comes down to choosing the right excess(es) for your business.

That's where our expertise comes in. Contact your local Elders Insurance agent today for advice that's relevant to your locale and an insurance quote.