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Paying Your Public Liability Insurance Monthly
Cash flow is important for all businesses at all times, but in the current economic climate it is more important than ever.
As business owners we are always looking for ways to reduce our costs, or to at least spread those costs over a longer period of time. One of the easiest expenses to manage in this way is insurance.
Most forms of business insurance, including public liability, can be paid monthly.
Monthly Public Liability Insurance
There are two different reasons why a business may require a monthly public liability policy. Some require it because they only need their policy for a short time, and some requireit for cash flow purposes.
Here at publicliabilityinsurance.com.au we can also issue short term public liability insurance policies, but in this guide we will only be looking at pay by the month for annual public liability policies.
The policies that we have access to can be paid monthly, however they are still classed as annual insurance contracts. You can cancel the policy early, but there may be additional costs involved.
For more information about cancelling your insurance early please contact us.
Paying your small business public liability insurance by the month can be a great option for spreading out your insurance payments.
The most common way of setting up a pay by the month public liability insurance policy is by using a method known as premium funding.
Unfortunately many of the insurance companies in Australia do not offer monthly payments on their business insurance policies, but premium funding allows you to get around this.
Premium funding works by setting up a contract with a funding company. The funding company will pay the full annual premium to the insurance company, and you then repay the premium to the funding company through regular monthly payments.
If you choose to cancel your pay by the month insurance early, the funding company will request a refund from the insurance company and then calculate if you have any further money owing to them.
Alternatives for Monthly Payments
Whilst premium funding is the most popular option for monthly payments by Australian businesses, there are a few alternatives.
When you setup a premium funding contract there will be fees and charges involved. It may be worth considering paying the full annual premium from a business overdraft account or credit card. This won’t always be a better option, but it is worth running the figures.
There are some insurance companies who offer direct monthly payments at no extra cost, however the numbers are quite low and you may be restricting yourself to more expensive insurance policies.
Monthly Insurance Quote
Here at publicliabilityinsurance.com.au we can offer pay by the month quotes for public liability insurance and a range of other business insurance types.
When we provide you with a monthly quote we will always include all fees and charges associated with the premium funding contract.
If you are obtaining monthly quotes from other providers, make sure their quotes also include these fees. We have heard of other insurance brokers no including these costs until after you have agreed to take out the cover.
To obtain a monthly quote on your insurance or for more information about public liability please complete our online quote request or enquiry form.