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

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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