As if Australian business owners hadn’t faced enough challenges this past year – now the dreaded annual insurance and workers compensation premiums will soon arrive in mailboxes. Here’s how to smooth ‘em all out (and get an early bird discount!).
If you’re a business owner, you know there’s no shortage of big bills you’ve got to keep one step ahead of at this time of year.
And your annual insurance premiums are no exception, whether that be for professional indemnity insurance, product liability insurance, public liability insurance, or any other general business insurance policy.
Throw your workers compensation premiums into the mix and you’ve got quite the annual financial hurdle to overcome.
Fortunately, a financing option exists that can ease your cash flow headache and help you become eligible for an early bird discount on your workers comp premium.
Have you heard of Insurance Premium Funding?
Insurance Premium Funding (IPF) enables you to split your insurance payments into manageable, affordable, monthly amounts that won’t cripple your business’s cash flow like an annual lump sum payment can.
Basically, any business that has an insurance premium of more than $5,000 has the ability to use IPF if they need to.
The insurance premiums are normally financed over 8 to 10 months to ensure the premium is fully paid before its renewal, and there is generally no security required with IPF.
Workers comp early bird payment discount due soon
One insurance premium that IPF is commonly used for is workers compensation.
That’s because in some states (including NSW
), employers who pay their annual premium in full are entitled to a 3% to 5% early bird discount.
But to qualify for the early bird discount, workers comp premiums need to be paid in full before the early bird due date arrives (typically around August/September).
So, by using IPF to make this payment upfront you can secure the early bird discount, which helps to offset the cost of IPF.
By taking this path, you can smooth out your business’s cash flow and redirect capital into income-generating investments.
Find out more
If you’d like to find out more about financing options for IPF then get in touch today – especially if you want to be eligible for the workers comp early bird discount.
There’s no shortage of financial hurdles for businesses to overcome during these difficult times, so we’d love to help you out any way we can.
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