When shopping around for business insurance, you’ll often be met with the option of buying an annual policy or paying in installments throughout the year. But what’s the difference? And why should you think about choosing monthly business insurance?
Here at Superscript, we often wax lyrical about our monthly subscription plan – so we thought we’d run through some of the advantages of it compared to a yearly contract and the reasons why it may make more business sense for you.
1. Helps to manage cash flow
Spreading the cost over a year can be much more feasible for a lot of businesses that don’t have the cash to pay yearly fees upfront. For instance, if you’re a new business and your monthly turnover is in flux, it can be easier to budget for a smaller monthly business insurance plan, compared to forking out a big sum once a year.
2. Adjust your cover at any time
From new employees to venturing down different business avenues – businesses are constantly changing and evolving, and your insurance needs to adapt alongside it, so you’ve always got the right level of cover.
If you need to alter your policy, some insurers may charge you to do this to an annual policy. Our monthly subscription means that you can change your level of cover and business details at any time and you won’t be charged an adjustment fee.
3. Only pay for what you need
A lot of annual contracts bundle insurance to include cover that your business may not actually need. This usually adds money onto your premiums, which could be used elsewhere in your business.
Our quote builder lets you select only the covers that are applicable to your business, which then adjusts the price of your monthly premiums accordingly.
4. Not locked-in
Let’s say you wanted to stop your insurance plan halfway through the year. If you’ve paid for annual cover, that’s a pretty big waste of money. And a lot of people also don’t realise that they’re set up for auto-renewal, which could catch you out easily. In fact, it’s been found that micro-businesses in the UK lost billions in 2020 because of auto-renewing annual contracts.
A monthly contract allows you to pause or cancel your policy throughout the year and pick it back up when you please. And at Superscript, you won’t be charged for it!
If you wanted to come back, all you’d have to do is let us know and we’d kickstart your monthly cover and payments again (after reviewing if you need to adjust your cover, of course).
5. Flexibility for the future
The world of business can be rocky and – as we’ve all learnt in recent times – the future can be unpredictable.
Whether you’re just starting out or you have a well-established business, it can be handy to have an insurance policy that can be changed at the drop of a hat if your circumstances – or the world around you – changes rapidly.
Advantages of paying annually
1. Pay once and forget about it
A lot of people like to buy their insurance and then not think about it until renewal time rolls around. And while this is true for annual policies, it can also be true for monthly, too.
Apart from perhaps noticing your business insurance coming out of your account each month, you shouldn’t need to deal with your monthly business insurance at all, unless you need to change your cover or make a claim, which is the same for annual insurance.
2. It could be cheaper
Many insurers charge extra to put you on a monthly payment plan over an annual plan. In the long-term, this could work out cheaper for you. However, our monthly subscription works out to be the same price as annual cover, so you can still get the same value while paying for your insurance in a way that suits you.
If you’re thinking about buying business insurance, we hope this has helped you see the value in paying monthly.