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7 Reasons to Call an Insurance Adviser

Whether planning business changes, new assets or budgets, there are many reasons to call your insurance adviser.

Here are our top seven reasons to call your insurance adviser:

1. Major Business Changes 
Whether recruiting, building new premises, planning new product lines, adding more revenue streams, or making ownership changes, keep your insurance adviser in the loop.

Why? You may overlook the insurance implications or risks that expose your business to underinsurance, higher premiums or, even worse, no cover!

The earlier you chat with your adviser, the better. It'll help you decide whether to transfer the new risks to insurance, implement risk mitigation strategies or update your insurance program.
 

2. Budget Setting
When setting annual budgets for the business, consider how your plans may affect your insurance premiums.

Calling your insurance adviser will inform you of what’s happening in the insurance market. They can explain the impact to existing insurance premiums and the steps you can take to prepare.

Additionally, your adviser can ensure you allocate an adequate budget for any insurance adjustments you may need to protect new assets and business changes.
 

3. Entering New Business Contracts
Before you sign on the dotted line, talk to your insurance adviser.

Why? The contract may include clauses that result in you:

  • Breaching the terms and conditions of your existing insurance policies.
  • Restricting the level or type of insurance available due to your business set-up, financial position or operations.
Your adviser can help ensure that the contract's insurance requirements are appropriate for all parties.

In the current economic climate, there's a tendency to shift risk from the core business to contractors. Therefore, chatting with your insurance adviser can provide peace of mind before you sign.
 

4. Purchasing Assets 
Call your insurance adviser before buying equipment, vehicles, or other assets.

Why? Seeking insurance advice after purchasing assets can expose your business to unwanted financial risk, not just replacement costs, which could affect your cash flow.

For example, say you buy new machinery overseas, which breaks down, and replacement parts take six months to arrive. Due to the machinery being out of action, the company may lose vital income, which the existing insurance may not cover.

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

Purchase up to six products under one Business Insurance Package. 

For example, say you buy new machinery overseas, which breaks down, and replacement parts take six months to arrive. Due to the machinery being out of action, the company may lose vital income, which the existing insurance may not cover.

 
5. Cash Flow
Cutting your insurance to save dollars may be tempting when cash flow is tight. Instead, you should contact your insurance adviser to discuss your options.

For example, say you need to downsize or make changes in hard times. In that case, there may be savings you can make by reviewing your insurance cover.

Deciding to cut insurance on a whim can expose your business to further financial risk or business closure. Therefore, chat with your adviser about your options to help you make an informed decision.

For example, your adviser may help review your insurance program by:

  • Determining the financial risk(s) the business cannot afford to absorb
  • Presenting alternative excess options
  • Exploring flexible payment options

For example, your business may have adequate financial resources to pay for broken laptops. Therefore, you may forgo the property damage cover for laptops. However, the company may need more financial resources to pay for the costs incurred to defend a claim made against the company's Directors & Officers or cover financial losses to your business, customers or third parties. Therefore, your adviser may recommend maintaining your management liability and cyber insurance policies.

 
6. Reporting Incidents & Potential Claims
When incidents relate to your business, customers, staff, property or other potential claim events, promptly informing your insurance adviser is vital.

Why? It protects your business should a claim arise. That's because your adviser can explain the insurance implications, advise on what to prepare and inform your insurer.

Some insurance policies require you to report incidents immediately. Otherwise, insurers may not pay out at claim time. For example:

Situation

A not-for-profit terminates an employment contract due to ongoing behavioural issues. The organisation reports the dismissal to their insurance adviser as required under their Management Liability policy. In the meantime, the employee lodges an unfair dismissal claim with Fair Work.

Outcome:

By reporting the incident to the adviser, the adviser will notify the insurer and work with the insured organisation to guide them through the claims process. Should Fair Work pursue the claim, the organisation's policy responds per the insurer's terms and conditions, such as covering legal costs and compensation payments for a wrongful act where the organisation is found negligent.

If the organisation fails to inform their adviser and the insurer is not notified of the circumstances that may give rise to a claim within the required time frame or current policy period, the organisation may breach the policy terms and conditions. Therefore, the policy may not respond, resulting in no cover.

Calling your insurance adviser minimises the risk of breaching the terms of your insurance policy.


7. Sharing Your News
Insurance is a relationship business, and we love to hear your news. Whether it's achieving major milestones or business struggles, we're here to listen and help.

We work with many businesses and assist with all manner of insurance issues. As such, we may have a solution or business connection that helps to change everything.\


Are you looking for a professional insurance adviser?
Clear Insurance's experienced team are here to help safeguard your business. If we cannot help, we'll point you to an insurance professional who can.

We always appreciate a client call, so contact our team today.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Clear Insurance Pty Ltd. ABN. 41 601 916 689. AFSL No. 548953.



General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.


Clear Insurance, ABN 41601916689, AFSL 548953

This article originally appeared on Clear Insurance and has been published here with permission.

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