Many of you will have been inundated with letters from Superannuation funds recently. The letters are advising that for non-active Superannuation accounts, the Life Insurance Component of your coverage will be cancelled unless you advise your fund you wish to keep paying for this insurance.
Not everybody (including me) has had time to sort out their funds and so you may have received a few letters! It makes you wonder how much time we really take to review our insurances to see if they are still suitable.
When your Business Insurance Programme comes up for renewal you may be falling into the same trap. Renewal Time is an excellent opportunity to carefully review your covers and discuss in depth what you can do to minimise increases with your broker. Some of the areas to pay particular attention to include:-
1) What does your Insurer know? You have a legal obligation to disclose to insurers, before a contract of insurance is entered into (including at renewal) all matters relevant to their decision to accept the risk and the terms they will impose. However, there may be information your Insurer doesn’t know that will reduce the risk (and therefore possibly the cost). It is important to be open and transparent with your Insurer – ensure they know what you do, and what you plan to do.
2) Review your current programme limits. With the increase in litigation in Australia, it is imperative to ensure your limits are adequate. It is tempting in a market such as this when prices go up to reduce the level of cover to save money. This will only provide you with short-term relief, and if something does happen, you may be left in serious financial difficulty. The best approach is to discuss these issues with your broker to ensure suitable levels of cover are in place.
3) Claims happen – that is what insurance is for. If you have been in the unfortunate situation to suffer a loss but you have since taken action to reduce the likelihood of a reoccurrence of the event, tell your broker. Details of processes you have put in place or increased protection for your property can have a substantial impact on how risk is viewed.
4) Industry specialists are often much more likely to be able to provide you with access to more economical facilities. For example, at Gow-Gates, we have been providing Travel Agents with specialised coverage for nearly 20 years and due to the number of participants in this programme, we have been able to keep prices very stable. In recent years we have been able to extend this to the broader travel industry.
5) Don’t leave it until the last minute. When you receive your insurance renewals, start the process of review straight away. In these difficult times, it can take your broker considerably longer to achieve optimal outcomes for you.
If you would like to have Gow-Gates review your current programme, please let us know.
On a side note, everyone at Gow-Gates wishes all the finalists for the NTIA Awards the best of luck next month. We’ll see you there!
If you would like to have Gow-Gates Insurance Brokers review your current programme, please feel free to contact Rebecca Fleming, Account Manager of our Travel Industry Division on (02) 8267 9919 or firstname.lastname@example.org to discuss your circumstances or to obtain a quotation.
Gow-Gates Insurance Brokers advises that persons should not act on the material contained in this article as the items are of a general nature only and may be misinterpreted. We, therefore, recommend that advice be sought before acting in these areas.