What is a minimum and deposit premium?

Some policies charge what we call a minimum and deposit premium. These classes of business are based giving flexibility to the premium due to future turnover fluctuations. This is built into the premium to allow for variations in that actual turnover, up or down, when declared at the end of the policy period.

The minimum or deposit premium  is based on a reasonable expectation of the low end of the turnover estimate and/or the minimum amount the insurer is prepared to charge.

The insurer will also declare a rate for future adjustment and if at the end of the policy period the turnover is greater than the premium generated by the minimum or deposit premium already charged then the insured is due to pay an adjustment premium calculated by applying the rate to the actual turnover and subtracting the premium already charged.

Eg - Est. Annual t/over - $1mil - - rate = 0.10%

Min/dep Prem @ say 80% = $1m x 0.10% x 80% = $800

Actual t/over = $1.1m

Adjustment = $1.1mil x 0.10% = $1,100 less $800 = $300

However, if the actual t/over is less than $800k then no refund is given.

To summarise then, the actual premium for this policy won't be calculated until the end of the policy period. In the meantime, you must pay a deposit on the premium and agree that this deposit is only the minimum amount you will pay.

At the end of the policy period the total amount payable will be calculated based on turnover/values, etc. If the values/turnover are less than you estimated you will not have to pay any additional premium. However, if the values/turnover you estimated are less than the actual figures for the policy period you will have to pay an additional premium."



 

Latest News

CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Services Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 5 March 2018.

Fundamentally, there is no difference to you, except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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