Insurance is one of those subjects that many people glaze over. So, just to test how knowledgeable you are about this important but unsexy topic, see how many of the following you can answer.

Questions

1. What type of insurance can provide cover if a natural disaster results in my business having to shut down for a period of time?
2. What type of insurance can provide cover if a client takes legal action against me? In what industries is it mandatory to have this insurance?
3. What type of insurance can provide a payout to cover costs relating to everything from a broken window to a tax audit to a light-fingered employee?
4. What type of insurance is legally required if you employ staff? What is the penalty for failing to take out this insurance?

Answers:

1. Business interruption insurance.
2. Professional liability insurance (also called professional indemnity insurance). Those working in the medical, accounting, law and financial advice industries.
3. Business insurance.
4. Workers’ compensation insurance. It varies from state to state but you’ll typically be at risk of jail time if an employee has been injured (or worse). NSW imposes a ‘double avoided penalty’ equivalent to double the amount you should have paid in workers’ compensation premiums.

One in ten businesses have no cover

If you failed to get all (or any) of the answers right, you can take solace in being a typical Aussie. Survey after survey has shown that Australians don’t have a good grasp on what insurance policies might be relevant to them. Unsurprisingly, Australia is one of the most underinsured nations in the developed world (underinsurance is when an individual or business has no or inadequate insurance to cover their legal liabilities, or the cost of loss or damage to their assets).

The Insurance Council of Australia’s 2015 report on non-insurance in the SME sector showed a non-insurance rate of 12.8 per cent. Paul Nielsen, director and chair of the Council of Small Business Australia (COSBOA), says many SMEs are in denial. “Business owners tend to think it won’t happen to them. Because of this, some SMEs view insurance as dead money,” he says.

Read the full Steadfast article here.

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Tailoring Your Coverage

Every business is unique, and so are its insurance requirements. Similarly, not all insurers offer the same policies. A proficient broker takes the time to understand your business, including its specific risks and vulnerabilities. With this knowledge, they can design and source policies that fit your risk profile, ensuring you have adequate coverage for your particular situation.

Ensuring Accurate Sums Insured

The sum insured is the maximum amount your insurer will pay out if you file a claim. Calculating this involves assessing potential losses from various events, such as natural disasters, business interruptions, and theft. Overestimating these losses can lead to unnecessarily high premiums, while underestimating can leave you underinsured and financially vulnerable. An experienced broker can help you find the right balance.

Understanding Your Options

While it’s beneficial to compare insurance options, busy business owners often have more pressing tasks. As a result, sticking with your current policies might seem easier than spending hours researching alternatives. An insurance broker can handle this legwork for you, contacting insurers, exploring different options, and recommending policies that offer the best value.

Assisting with Claims

Filing an insurance claim can be stressful and time-consuming. A broker can alleviate some of this burden by supporting you through the process, liaising with your insurer, and advocating on your behalf. This expertise can lead to smoother and quicker claim settlements, allowing you to focus on running your business.

Providing Ongoing Support

Ideally, your relationship with your broker will be long-term. They can offer ongoing assistance with policy adjustments, renewals, and risk management advice, helping you continuously safeguard your operations and assets.

Coverage When It Counts

Having the right insurance is crucial for protecting your business against unforeseen incidents. Arcuri & Associates can help you determine the appropriate type and level of coverage for your circumstances and advocate for you if you need to make a claim. Working with an insurance broker ensures you get the most out of your insurance investment, providing peace of mind and allowing you to concentrate on growing your business.

Click the Get A Quote button above for a convenient way to contact us at Arcuri & Associates.

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