All of us are looking for ways to make our budget a bit more manageable and if you work as a tradie, it’s important to have cash flow throughout the year. However, it can be difficult to maintain a steady flow of cash when you have annual bills that seem to arrive all at the same time. Luckily, when it comes to Public Liability Insurance there are monthly payment options available.
Benefits of monthly payment
One of the main reasons that tradies opt for a monthly payment option is to spread the cost of premiums throughout the year. If you work as a subcontractor, monthly payments are a popular option because you don’t need to worry about having to pay all of your premiums at once if your bill comes at a time where you don’t have as much work. Monthly payments tend to be easier to manage and don’t put as much of a dent into your budget.
If you run a small business, monthly payment helps regulate your cash flow throughout the year and you aren’t caught out having to pay your premiums all in one go. Although an annual payment option means that you don’t need to worry about your premiums for another year, you don’t want to be caught in a situation where you have a pile of bills to pay all at once as this can impact on the cash flow into your business.
Another reason that tradies may choose a monthly payment option is if they think they’ll only need the policy for a limited period of time. With monthly payments, you have the flexibility to cancel your policy without having paid for an entire year of premiums in advance. Remember, if you choose to cancel your policy prior to 12 months, fees are likely to apply.
Look at your options
If you’re currently paying your Public Liability Insurance on an annual or six monthly basis, it’s worth looking into a policy that allows you pay on a monthly basis. However, a lot of insurers will charge you extra for this payment option so look for a company who offer this option free from additional charge. It’s not worth changing to a monthly option to improve cash flow only to find you’re paying more on your premiums for the privilege. Annual or six monthly payments still suit some tradies but it’s good to know there is another option available.
At All Trades Cover, we are Australia’s fastest growing trade insurance providers and specialise in providing insurance to tradies. This means we understand the specific needs of your business and can help find an insurance package to suit you. Better still, we offer a monthly payment option at no extra charge so your payments are spread out throughout the year.
To organise Public Liability Insurance or for any other questions, give us a call at All Trades Cover today or fill in our online form.