If you’ve had the same insurance policies in place for a long time, there’s a good chance that your circumstances are not the same as when the policy was first taken out.
As part of our client service approach, we can handle the day-to-day management of your insurance cover. This includes holding regular review meetings to help make sure you continue to have the right level of protection and recommending changes where necessary to account for either new or emerging risks to your business.
It’s good practice to not only review your policy each year, but also when there are changes in your regular circumstances.
62% of SMEs are unlikely to have the right insurance in place to protect their business.
(QBE SMEs and Insurance Report – Pureprofile research study of 609 Australian SMEs completed for QBE Insurance during April 2019)
When should you have your policy reviewed by an insurance broker?
There are many situations that should trigger a review of your insurance policies, including changes in the following:
Levels of stock – you should ensure your policy covers the current value of your stock on hand. We can adjust your policy to reflect this value.
Staffing – if you have either increased or reduced the size of your team, this may affect the types and levels of cover you need.
Equipment and other business assets – your current policy may not cover new business assets you have purchased recently. If you have sold assets, you may be able to decrease your sum insured to reduce your premium.
New risks to your business – has the way you operate your business created any new risks to consider? For example, increased cyber risks from working in different environments.
Increased or reduced turnover can impact your business interruption policy.
New products or services you have launched.
Changes to sales channels, distributors or trade partners.
Any newly created entities may have affect your operations or have interests in assets.
Any changes to directorships.
The benefits of reviewing insurance policies
Save time – researching different policies and comparing policy wordings can be time consuming and tedious. With our innovative tools, we can quickly compare and assess different insurance products – taking the hard work out of finding the right cover.
Expertise – we can take the time to understand your business and provide options that suit you.
Save money – we help ensure you have the correct levels and types of insurance in place so that you are paying the right premium. If your circumstances have changed, we can also recommend ways to help ensure your cover is cost-effective.
Reviewing your funding options – you may wish to pay your premium for the year upfront, or in flexible monthly or quarterly instalments to assist with your cashflow. We can assist in sourcing premium funding options to suit your business.
By reviewing your current situation, we can help ensure you have the right types of cover required and the correct sums insured so you have peace of mind that you are adequately protected.
Insurance policy review process
A typical insuracne policy review will involve:
Setting up the meeting – we will set a meeting at a time and place convenient to you.
During the meeting – we can discuss any changes in your business and listen to any feedback you may have.
After the meeting – if there are any changes to your business, we can create an action plan and recommend adjustments to your policies to help ensure you are appropriately covered. We can then update your policies as required and provide you with certificates of currency to confirm your cover.
How can we help?
We take the hard work out of getting the most suitable insurance cover – at a competitive price. We have access to policies from national and international insurers – so we can help find the right one for you.
What are the key risks in the building and construction industry?
Construction projects involve multiple stakeholders and are often undertaken on challenging sites. Construction businesses must often manage changes to scope or orders, poorly written contracts and specifications and complex project management issues. They may need to deal with labour and materials shortages, or theft of tools and materials.
Subcontractors and suppliers can provide extra stress for construction firms, as can the rising number of extreme weather events. What’s more, cybercrime is an emerging threat to construction businesses, which often use insecure
connections from mobile workplaces, and share files and data with stakeholders outside the business.
Who should consider insurance?
Whether you’re an owner builder, a contractor or a large construction company, you’ll need a range of insurance covers to safeguard your workers, building and equipment.
“The construction industry generates over $350 billion in revenue, producing around 8% of Australia’s Gross Domestic Product, and has a projected annual growth rate of 2.5% in the next five years.” Australian Industry and Skills Committee, Construction, 2020
Did you know?
12,600 – The average number of serious claims per year over the last 5 years. (Safe Work Australia, Construction Industry Profile, 2015)
The construction industry had the fourth highest rate of serious claims in 2012-13. (Safe Work Australia, Construction Industry Profile, 2015)
What insurance should you take out – and what can it cover?
Insurance can protect you and your employees onsite, on the way to work and in your office.
Contract works
Protects any buildings under construction and construction equipment. This cover may include protection against:
• natural disasters like fire, earthquake, storm, flood, wind and water damage
• damage to property caused by defects, theft and malicious damage or vandalism or smashed glass
• third-party personal injury and property damage.
Business pack
Safeguards your business premises against:
• equipment or machinery breakdown
• employee dishonesty
• property or glass damage
• legal issues, with public and products liability
• tax audit
• theft, and theft or loss of money.
Cyber
Safeguards you and your business against expenses and legal costs if your website or other systems are hacked and your system cannot be used or customers’ details are stolen.
Motor Insurance
Takes care of your valuable business vehicles with cover to:
• help if you or your staff damage another person’s vehicle
• repair your vehicle after an accident or replace it if it’s written off
• replace a lost or stolen vehicle
• safeguard you against legal liability
Professional Indemnity
Protects you against legal action from a client for breach of professional duty. This
type of insurance is often required by building contracts.
What usually isn’t covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer and the requirements of your business.
Business insurance covers losses or damages to your property perils like fire, theft and accident.
It also provides protection from liability claims and other legal liabilities arising due to the death of an employee or any damage caused by his/her actions.
If you employ people in your business, it is compulsory that you have a workers compensation scheme for them.
The employer must provide compensation to the injured party if he causes any injury while on duty or performing a task assigned to him.
This can include medical expenses as well as pay lost during recovery time.
As an employer, you may also need to buy a policy that protects your business against claims of discrimination in the workplace. This includes sex and race related discrimination often know as Management Liability Insurance.
The insurance will cover any legal costs incurred due to these types of lawsuits as well as pay damages awarded.
Insurance examples for small business
Business Insurance Example 1:
Insurance covers damage to another object or person’s property caused by you. Insurance covers loss of money in your safe as a result of fire, burglary or any other vital reasons.
Insurance provides compensation for any legal costs that may arise due to disputes with another person over the ownership or delivery of items you sell/provide, etc.
Business Insurance Example 2
Insurance would cover the cost of goods lost due to fire, flood, theft and vandalism.
It also covers legal liability claims made by third parties against your business. What they need to prove is that your actions have caused them some financial loss because they suffered a physical injury or death. An example is when you accidentally injure a customer when he visits your shop; it’s highly likely that his family will sue you for damages like medical expenses and loss of income if they are breadwinners.
Business Insurance Example 3:
This policy will cover any legal costs incurred if an accident occurs due to negligence by you as an employer during the course of employment like faulty equipment used by an employee while performing a task assigned to him. It also covers damages awarded by a court and actions taken against you as either party involved in dispute are responsible for their legal costs as well.
Business Insurance Example 4:
In the case of a disaster like fire or flood, this policy covers the cost incurred in repairing/replacing damaged property like stock and equipment. It also provides compensation to your employees for any financial loss incurred due to damage done by a disaster. You need to carefully look at what each policy offers because some will cover financial loss only, while others will compensate for any financial and physical loss.
Business Insurance Example 5:
Business insurance is also available for individual entrepreneurs like drivers running their own transportation service business.
What this covers is damage caused by the driver while performing his duty to other vehicle or property. This includes damages done by faulty equipment used in the task as well as legal costs incurred due to accidents.
Business Insurance Example 6:
Similar policies are available for individuals with their micro business; they can buy a policy that provides coverage against any injury resulting from accidents during work hours even if it’s your fault or that of another worker on the job sharing duties.
Its important to get quality advice from an insurance broker.
There are many types of insurance policies, terms and conditions that make using an insurance broker a smart move.
Commercial Property Insurance – what does it cover?
It is worth noting that Commercial Property insurance can be purchased for structures only and not land (i.e. if a building catches fire or suffers structural damage).
What it does cover though are any items on the property as well as liability for claims made against you.
What this means in essence is that you are indemnified from damages, whether profits have been made or not.
What is specifically covered varies slightly from insurer to insurer and area to area but generally includes the following:
Loss of rent should your offices become unusable through fire etc.;
Loss of profit while premises are being repaired;
Damage caused by faulty goods sold or held at your premises;
Cover against a range of incidents, including theft, vandalism, malicious damage and fire;
Insurance contracts take the form of indemnity insurance products.
What this implies is that the insurer only has to pay the amount you have specified in your policy and not a penny more.
This means it is worth checking what kinds of quantities each party considers reasonable for different scenarios.
A fairly standard list of insured events for commercial property insurance include:
Fire
Escape of molten material from its intended confines at things
Lightning
Explosion or implosion
Storm, wind and rain
Water damage caused by leaking from damaged pipes, water systems, tanks or drains, or by a damaged main near the building
Obtaining the right insurance for your business is one of the most important decisions you have to make when starting a company.
How can you be sure that you are getting the best rates, and the coverage that will support your company in its growth?
How do you know if this insurance broker is trustworthy?
How much does it cost to get all these different quote comparisons from various companies?
How long does it take to get these quotes anyway?
When evaluating which business insurance broker or agency to connect with, there are certain qualities to look for:
1. You want an independent insurance broker who works with several major carriers rather than one who only works with one carrier. As a general rule of thumb, aim for a minimum of three insurers. Two are not enough, and five is ideal to compare rates and coverage options.
2. An insurance broker with experience in your line of business, and who is knowledgeable about the industry, will be able to ask the right questions and help you identify risks that might otherwise go unnoticed. How long has this broker been in business? How many years has he or she been doing business insurance – say specifically small business insurance? How many clients does this broker have – again specialising in your particular niche market?
3. A trustworthy, ethical individual who understands not only how policies work but also has knowledge about what businesses need as far as coverage goes. How long has he or she been working for his or her firm? How many policies has this broker or agency sold to companies like yours? How long has the insurance firm been in business? How many policies does it place annually? How much of this business comes from referrals and word-of-mouth as opposed to being a result of advertising, direct mailers, telemarketing, etc.?
4. How does this broker or agency communicate with its customers? How often does it make contact via phone, email, etc.? How are new clients and renewal policies solicited?
5. How well do you like this person whom you will have to work with? How easily can he or she explain complex matters in simple words? How well does this broker seem to know your industry-specific risks? How much does he or she charge for his services? How often can you expect this person to make contact with you (i.e., how much time will it take from the beginning of the process until you get coverage)? How long have clients worked with this insurance advisor?
6. How big is the insurance brokerage and its internal staff? A large firm should be able to offer more than one point of contact if questions arise or something goes wrong, and larger firms tend to offer more premiums as well – that means more business for the agency. Larger agencies also tend to provide training opportunities for their employees and offer a multitude of services.
7. Are marketing materials easy to understand and how useful are they? What is your overall impression from just looking at these documents if any? How readily available will quotes be? How quickly can you get an answer to a question once you’ve called for information.
8. What is your tolerance level when it comes to follow-up calls, paperwork, phone tag, etc.? How much time do you want or need to commit to finding coverage that fits your needs – before AND after you buy the policy(s)? And last but not least, How much of a deductible can you afford?
If your business currently has adequate coverage but is at risk for not having enough if it experiences growth or unforeseen events, buying additional insurance protection may be your best option. If you have one or more exposures that fall under “high risk” then insurance will not only cover the cost of repairs, but will also protect your company from paying out-of-pocket expenses in time and money lost during the claims process – potentially saving your company thousands of dollars in operating costs.
As always reach out for a chat if you have any questions here
