The top 5 business insurance questions answered…
When should you think about your insurance?
59% of business owners have a standard review of their insurance each year.
37% of business owners would think about reviewing their insurance if they experienced an insurance changes or events.
26% of business owners think about reviewing their insurance when making business changes
16% of business owners think about their insurance and just “set and forget”
When should you be thinking about your insurance?
You should be always looking at your insurance and making sure you are getting the what you need from it. Particularly when you’re looking to making a change to your business premises. It’s a good idea to have a chat to your risk adviser about what you’re looking at doing because typically insurers might change their appetite on your business just on the basis of what your building is made of or where it is located etc.
If someone decides they want to start selling a new product type, it’s a good idea to have a chat with your risk adviser so that they can talk to your insurer and ensure that the product is able to be insured. I have seen it before, someone has invested in products and when the risk adviser has taken it to market, it has been uninsurable.
Why go with a risk adviser?
- Expertise -They know our market. They can talk you through what is happening, it could be the rise and fall of the insurance market and pricing or issues in your direct industry
- Personal service – They’re there to sit down and talk to you about your insurance. You’re not going it alone.
- Simplicity – You’re paying someone to get out there, go through the market, come down and sit in front of you and explain what you’ve got in front of you.
- Advocate – they are an advocate for you. So quite often I’ll sit down with the team, talking to them about new opportunities or current renewals that we’ve got. They advocate for you and why your business and why we should be insuring you, why you should be getting the best possible deal that you can.
- No tailored wordings – A lot of what you’ll see out particularly in the direct marketing, etc. is just a substandard wording that has no bells and whistles. They’re drawing a part of the risk adviser’s network.
- Access – to a breadth of markets
- Avoid underinsurance
- Claims – Management Services
- A risk adviser is part of YOUR team
What do you look for in insurance?
- Costs – This is the first factor for many people. Some of the pitfalls with all of this is that if you go for one, you sometimes forgo the other.
- Cover – Looking for better coverage
- Claim Service – you have had a bad claim, so you are looking around for a better claim service
- Brand – like anything out there that you buy, it’s probably going to cost you a little bit more than what is in the market. You would generally get the right amount of coverage with a great claim service.
- Business Partnership – do you want to invest in someone who’s going to help you grow your business? Using a risk adviser can help make sure that your business is covered now and there for the future. They can offer advice on market trends etc and help guide you and your business.
Risk & What Insurers Look For
- Construction – What is your building made of
- Occupation – What is it you do?
- Protection – What are you doing to minimise risks of potential threat to your business e.g. Security, Sprinklers etc
- Exposures – What are the key risks that may lead to an insurable loss
The key is what are you doing to ensure your risk is the best quality risk it can be.
When you are planning the next great leap for your business align it with your insurance by having a chat to your risk adviser.
This article originally appeared on Adroit Insurance & Risk Blog and has been published here with permission.