When it comes to the world of Business Insurance, comparing policies and trying to work out what type of insurance your business needs can be a daunting, challenging and time-consuming task.
Purchasing Business Insurance need not be difficult, but it should be done in a disciplined and well-coordinated manner. There are some practical steps you can take that will improve your chances of securing the most cost-effective and appropriate coverage to adequately protect your business.
1. Take a proactive approach to Risk Management
It is important for all businesses, regardless of size, to take a proactive approach to risk management. In the current insurance landscape, Insurers are recognising better risk-managed businesses, so it is important to have controls and strategies in place to ensure your business risk profile is optimised. As a starting point, consider these questions:
- Who is responsible for risk management and insurance in your business?
- What controls, policies, procedures and training does your business have in place to identify, avoid, reduce and manage risk? Hint: This might involve property damage, injury to employees or third parties, professional advice mistakes or a data breach.
- Do you have an “Incident” recording system to assist with monitoring risks and reporting potential claims to insurers? Hint: Some policies only indemnify you for “claims made and notified” during the policy period. E.g. Professional Indemnity, Directors & Officers, Management Liability, Cyber Insurance.
- Are staff aware of and trained on new and emerging risks? Hint: With Cyber and Privacy related claims becoming more frequent, how would your business recover after a cyber-attack or data breach?
- Who takes ownership if there is a claim? Hint: We advocate and manage the claims process on our clients behalf to achieve the best possible outcome.
2. Identify and partner with competent Insurance and Risk professionals
It’s never been more important to have competent Insurance and Risk professionals advising your business. The Australian Insurance Market has changed significantly in the past 12-18 months. Insurers are being far more selective on risk and reducing their capacity in many classes of insurance. Given the widespread adjustment to policy coverage and pricing, make it a priority to partner with professionals willing to learn about your business and who demonstrate they are an effective advocate for your insurance and risk interests.
3. Start your review early
An annual review of the Business Insurance policies should be completed with your insurance adviser to review any changes to your business operations. As a guide, the best time to start work on policy renewals is around 60 days before the expiry date. If you are starting a new business, make this a priority and start as early as possible.
Changes to your circumstances throughout the year may expose gaps in your current Business Insurance policies. These gaps could create issues that are potentially costly and detrimental to your business if a claim occurs. Regular review meetings throughout the year will help to ensure you continue to have the right level of protection.
We are here to help!
If you have questions about purchasing or reviewing insurance for your business, our team can help you.
As trusted insurance advisers, our team are experts in providing risk advice and tailored insurance solutions. We can provide a no-obligation free review of your current insurance policies, so you don’t need to spend time researching and comparing yourself.
We will work with you to understand the unique risks your business faces and then provide you with an insurance solution to match, so you can be confident you’re adequately protected.
For a no-obligation free discussion to see if we can improve your Business Insurance cover and potentially save you money, call me on (02) 4969 8100.