Imagine something serious happens at your business. You need to make an insurance claim. You contact your insurer. But the news isn’t good. In fact, it turns out the policy you’ve been paying for – the one you thought was protecting you – actually doesn’t because of an exclusion you hadn’t even realised was in your policy. Your mind races. Your heart sinks. And, suddenly, your blood pressure rises. A lot.
It’s a nightmare scenario. But sadly it’s an all-too-common one for many Australian business owners. Question is, could it happen to you too?
In an era of tight budgets and slim margins, many business owners choose to manage their insurance direct to keep costs down. For some, perhaps due to good management but often due to little more than decidedly good luck, it works out okay. But for others it proves a costly gamble that leaves them badly and unknowingly exposed, underinsured or even completely uninsured in the event of a claim. In such instances, things rarely end well.
This is one of the great risks of going it alone with your insurance, and not seeking the advice of an experienced Insurance Adviser. Even if you have every intention of doing things right, a simple oversight or misunderstanding could unwittingly leave serious gaps in your cover; gaps you may only discover once it’s too late to do anything about them.
Of course, the irony is that by using a specialist Insurance Adviser you’ll not only ensure you’re adequately protected – in many cases you’ll actually save money too. According to ‘Understand Insurance’, an initiative of the Insurance Council of Australia, cost is actually one of the five key reasons business owners should use an insurance adviser. As it explains:
“Contrary to widespread belief, an insurance adviser will not cost you an excessive amount of money. In fact they’ll most likely save you money. Lots of it. Insurance brokers have access to the very best rates from a wide range of insurance companies who are all competing for your business. They also receive far more competitive rates than you would going direct to an insurer as they have multiple clients, which means more buying power.”
The Insurance Council of Australia explains confidence is another important reason to choose an adviser rather than dealing with insurers direct: “Having a trusted insurance adviser means you can ask as many questions as you like; including ones you mightn’t feel entirely comfortable asking an insurance company directly. Your adviser will know the full terms and conditions of your policies, inside and out, and will ensure you know exactly what’s included and what isn’t. It’s all about confidence and peace of mind.”
If you’re interested in knowing more about the benefits of using a specialist insurance adviser, rather than ‘going it alone’, you can visit the Insurance Council of Australia here: http://understandinsurance.com.au/insurance-brokers
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.