Insights

3 Steps to Getting the Right Business Insurance


In a tight market every dollar counts, so businesses need to find the happy medium of getting the best value for their business insurance, without sacrificing the cover itself.

Here are 3 simple steps to getting the right cover for your business:

1. Check your risk exposure

Businesses need to understand what areas of exposure (i.e. risk) their business has, then compare this to what they are currently insured for. The difference is their level of ‘self-insurance’, or risk exposure.

Once a business knows its risk exposure, it is in a better position to decide what (if any) additional insurance products to apply for.

To understand risk exposure, a business should complete a review with their insurance broker.

2. Review regularly

As a minimum, all businesses should review their insurance policies annually.

The review can also be done bi-annually or quarterly depending on the size of the business, or if work activities are changing throughout the year.

This is especially important in a tough market, as more businesses are diversifying their activities to bring in additional income.

If these diversified activities aren’t disclosed to the insurer, they will more than likely not be insured.

Once a review is complete, your insurance broker will assess your risk exposures and provide an insurance solution that has the right product to meet your risk exposure, and is the most affordable method.

3. Consider product and price

Product must always be considered first, with price a very close second. There is no point paying an insurance premium if it doesn’t cover you correctly.

Many policies have exclusions built into their policy wording which are only found in the Product Disclosure Statement (PDS).

For example, an importer of stock can see the same $20 Million Public & Products Liability on their insurance schedule as a wholesaler of stock. However, Australian legislation deems importers as manufacturers, not wholesalers. Therefore, an importer needs different cover to a wholesaler.

Insurance is often not apples for apples, but your insurance broker is there to understand this and get that happy medium of the correct product at the best price.

Mick O’Bree is a Director of Vantage Group company; Vantage Insurance, a full service commercial insurance firm, delivering risk management solutions to over 4,000 SME clients throughout Australia.

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