Why use a broker?
Experiencing a loss can become considerably worse if the insurance you have in place fail to meet your expectations. The failure of an insurance policy can significantly impact your financial position, financial security and ultimately your standard of living.
Today, purchasing insurance can be done with the click of a mouse, and for some options, that may be sufficient. Some insurance might be provided in a package with other products or services, for example travel insurance may be built into your holiday package and may provide you cover in the event of your flight being cancelled. While you may be able to select a level of cover, these products are usually a ‘one size fits all’ solution.
Insurance needs vary between individuals and businesses and those needs may change over time. How do you ensure your situation fits the insurance policy you purchase or that the insurance policy fits your needs?
No two businesses are the same. As you consider your specific business insurance needs, are you aiming to protect your investment, assets, people, ability to trade, cash flow, or perhaps protection against being held responsible for someone else’s loss by purchasing liability insurance. Do you have the confidence to simply click and select when protecting your business?
Purchasing business insurance online comes with three key risks:
Over- or under-insurance: This could happen when your policy isn’t enough to cover your losses or expenses in the event of a claim, or you’re paying too high a premium for cover you’re never likely to require because the risk is low or negligible.
High premiums: You’re unable to negotiate your premium with an online provider based on the specific operations of your business.
Opaque and complicated claims process: Each insurer has its own claims process, and for online providers these can be needlessly complicated. Claim processes often compensate for the lack of questions or evidence requested during the sales process. And do you know your rights if the claim goes off the rails? This can all contribute to a poor claim outcome and potentially your investment in the policy not being maximised.
Risk and insurance advisers are there to help
Insurance can be a complicated purchase, both in terms of the language used in the policy, understanding the benefits and risks of the insurance products, your obligations when entering into a contract of insurance and the impact of decisions you make if and when making a claim. A professional risk and insurance adviser can help demystify the process and to help you arrive at the level of cover that is appropriate for you, your business or your family. Your adviser is there to represent you, not the insurer, and are there throughout the term of the policy including to assist altering your cover with your changing needs and with claims should the need arise.
A risk adviser is there to prevent all three of the above factors from occurring. They can help you decide on the most appropriate level of cover, negotiate the best price for the most appropriate cover, and ensure that any future claims are handled professionally.
A professional risk and insurance adviser can work with you to explore the risks within your business and identify potential risk exposures that you may not be aware of. They will set out to understand what areas of your business are more exposed and where insurance might be worth considering, and help you understand how the insurance system can help if an unforeseen event or loss occurs.
This will result in a level of cover that has been developed for your operations, and you can rest easy knowing that your business is financially safeguarded in the event an insured event occurs.
One of the most challenging parts of any insurance journey is when an event occurs and a claim must be lodged. For an individual dealing with a disruptive business event, managing claim documentation can be a difficult process and a distraction when the focus needs to be in the business and its recovery.
Having a risk and insurance adviser assist in the claims process can take much of the stress out of the hands of the business owner, allowing them to focus on their business. The broker can assist in the preparation of the documentation to lodge to the insurer, and guide them throughout the process.
Because you have a designated adviser that knows you and your business, you can receive updates at any time from someone familiar with your situation. Insurance advisers also have strong relationships with the insurance companies and designated contacts, so if there are any issues your broker can escalate them on your behalf using their expert knowledge to negotiate and help you exercise your rights and improve your claim outcome.
A trusted professional
Risk and insurance advisers are like any other specialist professional adviser, like an accountant or lawyer. They are there to assist you as their client and have the skills, relationships and experience to assist you to protect your business, your family and financial security, by designing a robust insurance program at the outset, to negotiating the best premiums possible, and helping with any claims. Using an adviser doesn’t mean the process is more expensive – in fact, given their knowledge of the market, they can often provide more cost effective — and comprehensive — cover. And they are there to help when you need them most.
Speak to one of our experienced risk and insurance advisers to see how we can help tailor insurance cover that’s right for your business.
Call: 1300 242 136
The information provided in this flyer is factual information only and not intended to be advice about which financial products are suitable for your circumstances. Before you make any decisions about whether to acquire an insurance product we recommend you obtain advice by contacting an AB Phillips risk adviser.