When you own a business, there are a lot of things to consider. In addition to managing the products or services you sell, you also have to manage staff members, rosters, supplies, materials, rent, salaries, and advertising. The list can seem endless at times and, if you’re feeling overwhelmed, then your business insurance may be one of the last things on that list.
Especially if you believe you already have a business insurance policy in place, you may not be willing to give up any of your limited free time to review your insurance policies.
However, this can be a potentially risky approach as insurance is actually a key part of running your business so that it remains viable and successful into the future. If your business were to suffer a loss due to theft, vandalism, fire, flooding, or any number of other incidents, you need to know that your insurance policy will be there for you.
According to the Insurance Council of New Zealand, most businesses are underinsured. Underinsurance happens when a business owner thinks they have adequate insurance but, in fact, they don’t have a policy that covers the true cost of an incident, or they have an incomplete policy that doesn’t cover all of their risks. Being underinsured doesn’t necessarily mean that your insurance claim will be denied, but it does make the settlement difficult and complex because you haven’t paid the premium that is commensurate to the risk. This can leave businesses on the back foot and dealing with an assortment of issues as a result. For example, you may only receive a percentage of the amount you were expecting in the event of a claim, leaving you out of pocket.
Realising you’re underinsured can be shocking and stressful, especially for a business owner that has recently suffered an incident and will now be out of pocket for repairs, replacements, or reparations.
The best way to avoid underinsurance is to work with an experienced insurance broker who can help you mitigate the risk in your business and insure against the most likely and most impactful risks.
Insurance brokers will work with you to understand your business, discussing your specific needs, and from there, make educated and appropriate suggestions that meet your business needs.
Three benefits of an insurance broker
An insurance broker can look at your business from a holistic perspective and identify where you may have gaps, where you might be able to mitigate the risk through different business practices or safety procedures, and how you can protect your business with the right insurance policies.
Working with a broker is important because they’re experts in this field. Combining their insurance expertise with your expertise regarding your business means you can get the best possible result.
Here are three key benefits of working with an insurance broker:
1. Tailored insurance to suit your business
An insurance broker will make the effort to understand your business, its entities, and your business goals, so they can recommend the best insurance coverage for your unique situation. They will consider the industry, the risks associated with operating the business, and other potential factors that may impact your business. This results in a far lower risk of being underinsured, which is common when business owners take a one-size-fits-all policy such as those offered online.
2. Confidence that your business is protected
When insuring your business through a broker, they will identify products and services that best meet the business’s needs, and find providers who can align to your requirements. Your broker may even suggest advice that you hadn’t considered, but could be crucial for the business. For maximum confidence, you should work with an independent broker who is focused on your needs and not on selling a specific product.
3. A knowledgeable advisor for business matters and concerns
A great insurance broker will look out for you and your business, and help protect your interests. In times of change and uncertainty, they will be able to guide you on your best options. Should you need to make an insurance claim, your broker can also guide you through the claims process, resulting in a better chance of success.
Your insurance broker should be able to provide guidance on a variety of factors, some of which include: public liability; business interruption; commercial property and assets; and even cyber insurance.
Insurance brokers are there to help your business and make sure that you have the best policy for your business’s needs. They minimise the time and frustration business owners can experience by doing the research, negotiating with providers, and compiling cover for all parts of the business.
To find out more about how an insurance broker can help your business, contact NZbrokers today.