INSURANCE

OVERVIEW

There will always be situations that may cause damage or loss to your business.

Should these situations occur, the right level of insurance is critical. Sometimes it can mean the difference between keeping going and closing up shop.

Commercial insurance is not just a ‘go online and get a quote proposition’. In fact, an expensive mistake that many business owners make is to just adopt a ‘plug and play’ method to their insurance.

Insurance premium pricing scales according to risk. Most industries have a similar set of risks that face most businesses. An online quote does not take into account how your individual business has gone about reducing risk.

Commercial insurance is in essence the management of risk. For most businesses, reducing risk is key to paying less for insurance. Many would simply view core functions of a business as the key driver for risk. There are many other factors that affect your risk weighting. How to understand and manage risk is worth getting advice on.

THINGS TO LOOK OUT FOR

Insurance is not set and forget
The risk landscape changes all the time. Changes to your business offering, staffing or practices may mean you need to consider changing existing or even new insurance policies e.g. cyber risk. Your business profile may also be subject to increased risk resulting from circumstances outside your control. This means you need to regularly review or work with your broker. A good broker will proactively work with you and provide ongoing health checks throughout the year.

Don't leave it to the last minute
Leaving an insurance quote or renewal to the last minute costs you money. You lose out on negotiating power and options. It allows little time to consider risk mitigation actions you could take before renewal. By starting early you can ensure you get the best quote possible. You should start the process of renewal around 6 months before a policy ends.

Review your level of cover and excess each year
When was the last time you reviewed the cover and excess you have in place. You should review whether your business has a different risk tolerance each year. This depends on the nature and change in your business over the last year. By increasing excess, you can reduce the premium.

Under or over insurance
If you need to claim, under insurance could cripple your business finances. Choosing the right level of cover depends on your business situation every year. Reviewing this each year ensures protection in the event of a claim needing to be made. You should also avoid being over insured and paying too much.

Compliance to policy requirements
Integral to every policy is what the insurer requires from you. These are the policy requirements that for example may be the need to dead-lock doors. Understanding these requirements is critical to ensuring you manage risks and getting money in the event of a claim.

BETTER BUYING OUTCOME

The right insurance can save you time, money and most importantly an improved risk profile. Doing a direct quote online will often not deliver the best outcome for most businesses. You also need to be selective when considering an insurance broker.

Choose an insurance broker who will:

  • Take the time to understand your business, its requirements and people
  • Works with you to clarify risk and act as an advocate for your business
  • Proactively work with you to manage risk and changing circumstances throughout the insurance period

THE DEAL

Supply Clusters has partnered with AON for your insurance needs.

Supply Clusters members receive the following exclusive benefits:

  • All members receive a cash back on insurance premiums
  • Premium members are eligible for a rebate on advisory service fees. (NB: Cashback may not apply in these instances)

Aon customers enjoy:

  • Tailored solutions, negotiated via local or international insurance markets
  • Value through risk assessments, program management and a robust service plan
  • Experience across 60 industries in Australia to understand your needs
  • Aon agreed wording in contracts regardless of underwriter




THE BOTTOM LINE

Insurance is often seen as an ‘unnecessary evil’ but proactive management provides ample opportunity to simplify and save.

  • Online quotes provide a ‘one-size fits all’ approach that may cost you more money or provide inadequate coverage
  • Choosing the right broker can deliver the right balance of coverage, premium / excess mix and risk mitigation

You should choose a provider that offers:

  • Tailored solutions that take into account the individual needs of your business
  • A strong customer advocacy and partnering approach
  • Agreed wording regardless of underwriter

FIND OUT MORE

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