WEDNESDAY, FEBRUARY 22, 2012
In these tough financial times, everyone is looking for ways to ensure that they only spend what is necessary in order to keep their profit margins. While there are ways you may be able to trim your budget, it may be a false economy to consider lowering the level of your business insurance PA just to achieve a drop in how much you pay for your premiums.
You should check through your policies and make sure you aren’t paying for coverage you don’t need. However, before you cancel any of your coverage, ask yourself – for each policy – can you afford the out of pocket expense of covering a possible loss if you no longer have coverage for any particular situation?
Unless you have financial reserves that can be left untouched to cover unexpected financial needs, you should consider alternative budget choices. Your insurance is an ongoing expense – that’s a given. However, it is a regular amount of money that you can structure into regular income and outgoings and prepare for – unlike an unexpected loss.
It would be a worthwhile exercise to sit down with your business insurance PA agent to see if there are ways to restructure your insurance package to make it as cost effective as possible. You might also consider a meeting with a financial advisor who may be able to assist you with other areas of your business budget so you can ensure you are as well placed financially as possible to weather the hard times.
Posted 12:36 PM