Insurance planning for the new financial year: Key tips and best practices

As the new financial year kicks off, it’s essential to take a proactive approach to protect your business by ensuring your insurance coverage is up to date. In this blog post, we will provide you with valuable insights and practical tips to help you navigate the process effectively. From updating your business plan and strategy to understanding tax deductibles and reassessing your insurance, we’ve got you covered.

Update your business plan and strategy

To kick-start the new financial year on the right foot, it’s crucial to update your business plan and strategy. Begin by mapping out any new risks that may arise and developing a robust risk management strategy. A key component of your plan should be the inclusion of your sales pipeline and projected revenue. By forecasting future sales, you can determine the appropriate amount of insurance coverage needed to protect your business adequately. Additionally, creating a budget and cash-flow forecast will provide valuable insights into your day-to-day commitments and help you plan for any gaps or future expenditures.

Know what you can claim

Understanding which insurance expenses are tax deductible is vital to optimise your financial planning. While your accountant is the best resource to assist you in this area, it’s generally acceptable to claim deductions for most operating expenses in the same year they are incurred. When it comes to insurance, specific coverage such as fire, professional indemnity, public liability, and workers’ compensation are typically eligible for deductions. By knowing what you can claim, you can make informed decisions that benefit both your business and your bottom line.

Is your insurance right for you?

When reassessing your insurance coverage, it’s essential to ensure it aligns with your business needs. Review any physical properties covered by your insurance policy to verify that the sum insured is accurate. Online tools are available to help you calculate the replacement cost of buildings, but for a more detailed calculation, consider engaging with our trusted valuer or quantity surveyor. Avoid arbitrary figures or relying on the previous year’s amount with minor adjustments for inflation. Construction costs are rising significantly, and it’s crucial to reflect this in your insurance coverage. Undervaluing your property or failing to increase the insured amount can lead to severe consequences in the event of a catastrophe like a fire. Collaborating with our team will provide the expert guidance you need to ensure your insurance cover is comprehensive and protects your business effectively.

As you prepare for the new financial year, don’t overlook the importance of updating your insurance coverage. By following these essential steps, including updating your business plan and strategy, understanding tax deductibles, and reassessing your insurance needs, you can safeguard your business from potential risks and ensure your coverage aligns with your requirements.

Samantha Raco, our experienced Account Executive, is dedicated to guiding you through the complexities of insurance with her 18 years of industry expertise. Her ability to simplify complex concepts and foster trust through open communication ensures you have the coverage and support you need. Reach out to Sam today to discuss your insurance needs and make sure you’re prepared for whatever lies ahead.