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The Insurance Bill has arrived – what can you do?

As always the insurance market is extremely volatile – while some personal insurance policies are seeing extreme increases, there can be sudden unexpected spikes at any time. So what can you really do?

When was the last time you actually reviewed your insurance? Do you just open the envelope with dread, make the payment, then forget about it?

Use this opportunity as a time 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 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 with your Insurer – ensure they know what you do, and what you plan to do.

2) 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 re-occurrence 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 a risk is viewed.

3) Identify your risk tolerance.

Work with your broker to understand your organisation’s ability to absorb risk – your risk tolerance – from both a cover and excess structure perspective. The cost of home and private motor vehicle in particular is quite sensitive to the level of excess that you have. If you are prepared to bear a higher excess it can make quite a difference to the cost of your insurance.

4) Review your current programme limits.

With the natural disasters that are now commonplace, people are now beginning to understand that losses really can happen to anyone. It is tempting when the economy slows 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 penalised by Insurers for not declaring full values. The best approach is to discuss these complicated issues with your broker to ensure accurate values are declared, but you are still achieving the best value for your insurance dollar.

5) Industry specialists are THE EXPERTS

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.

6) Don’t leave it until the last minute.

When you receive your insurance renewals, start the process of review straight away.

Why Use an Insurance Broker?

An insurance broker can save you time, money and worry. Just like a travel agent who provides you with professional advice, based on years of training and experience, a qualified broker can do the same with your insurance.

When arranging insurance, many people take shortcuts without seeking proper advice, understanding the fine print or considering whether they are getting value for money. Often they are disappointed when their insurance doesn't come to the rescue.

Whether it's business or personal insurance, brokers provide advice and assistance to make sure you are properly protected.

Using an insurance broker doesn't necessarily cost more. Often it costs less because brokers have in depth knowledge of the insurance market and the ability to negotiate on your behalf. A broker will also explain your policy and any special situations you need to watch out for.

You will benefit most by developing a close business relationship where the broker understands your future plans, the associated risks and how you like to do business.

An insurance broker's foremost duty is to his or her client. An insurance broker works for you, not for the insurance companies.

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 rfleming@gowates.com.au to discuss your circumstances or to obtain a quotation.

Gow-Gates

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.