Lessons learned from the natural disasters
When disaster strikes, you want to know you can count on your insurance. That’s why it’s important to know what cover you’ve got, and review it regularly.
By Paul Rattray
The stories in the aftermath of what are being called Australia’s worst fires on record, are both heart-wrenching and heart-warming in equal measure. Thousands of Aussies are now rebuilding their lives. There are also many who have suffered from floods in recent months too.
This is the land we call home. It’s the reality of Australia’s harsh, and at times, temperamental climate, which the science experts say is only going to become more unpredictable.
And this brings us to the subject of this blog: Insurance.
Is your insurance up to date?
Most small business owners will attest to the fact that along with taxes and wages, insurances are a significant cost to be budgeted and planned for.
And in tough times it can be tempting to skimp and save, or to cut corners, but doing so, means doing so at your potential peril.
We’ve said it before, and we’ll say it again. Insurance is imperative. It’s entire function is to make things simpler when something disastrous, whether it be a weather event, a workplace accident, or a break-in and burglary, occurs.
If you have up-to-date insurance, then you can submit your claim and move forward, with peace of mind, knowing you’re covered and that the payout will cover most, if not all, of the expenses.
But there’s something else, too.
Beware the generic policies.
Yes, they tend to be cheaper. And on the face of it, when you’re comparing policies, apples should be apples, right?
Well, they aren’t.
Beware the 'generic' policies
For example, if you have a business loan with a major lender, chances are you have some insurance policies that you took out at the same time, as a mandatory process for having the loan approved. These are ‘generic’ policies, they’re based on a broad-based average, they’re not specifically tailored for your business.
This is why you should take the time to sit down with an insurance broker.
When you do take the time, you can rest assured that the results will be all in your favour and here’s why.
Get professional advice from an insurance broker
A broker will:
- Help you understand what you need and what you don’t.
- Ensure your policies reflect your industry as well as your particular business’ needs – tailored policies, unlike ‘generic policies’ are not a ‘one-size-fits-all’ proposition. They’re based on your individual business and your overheads and what you need in terms of a payout in the eventuality of an unforeseen scenario.
- Open your eyes to what might be worthwhile considering – key man insurance, for example, or directors’ liability insurance. And make sure you’re not doubling up, or paying for cover you don’t need.
A Broker can also alert you to any changes by the insurer that could affect you, and be available to discuss these is need be, as well as help you work out the most suitable way to pay for your premiums, depending on your cash flow.
Plus, another benefit of a broker is that he/she can act as a go-between between the insurer and you, if you have a claim in progress. This frees up your time and energy, so you can remain devoted to your day-to-day business operations.
Be prepared .... for any eventuality
Insurance is full of jargon, so it really does help to have an insurance specialist working with you, to fully explain the fine print, because the “devil is always in the detail”, as they say.
What’s more, you should sit down with your broker at least annually to assess and potentially revise any policies in line with your business progress and your growth plans.
When you’re in business you really need to be prepared for any eventuality – whether it’s disruption to your industry, a slow period, a new competitor…. Some days it really feels like the only thing you can count on is uncertainty. So, take some of the pressure off, and get professional advice so you can be certain about your insurance cover.
You can view our full series of insurance vlogs here.
And, if we can help, with insurance, business planning, accounting or financial services, then please, contact us.
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