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https://www.shieldedinsurance.com.au/commercial-property-owners/ The deductible is the amount you pay towards a claim before your insurance policy kicks in. While a higher deductible translates to lower insurance premiums, it also means that you will pay more money in case of a claim. On the other hand, a lower deductible means higher insurance premiums, but you will pay less money if a covered loss occurs. Consider your financial ability to pay for the deductible and your business's risk exposure before settling on the right deductible amount.