Most businesses are aware of the importance of being appropriately insured. Often, however, business owners are more concerned with getting their insurance at the right price rather than focusing on the wording of the policy to make sure they’re covered for the most likely eventualities. This is where a risk advisor can be of great benefit.
Choosing a policy based on price can be a valid approach if your budget is very tight. However, working with an insurance broker, rather than going it alone, can help you maximise the value of every dollar you spend on insurance.
And, if you do have to make a claim, it’s comforting to know you can simply contact your broker and they’ll help you navigate the complexities of the claims process. Claiming through your insurance broker is likely to yield a more positive result because brokers have the experience and know-how to help you take the right approach and gather the right supporting documentation to give your claim the greatest chance of success.
As valuable as an insurance broker can be, you’ll get even more business benefits from a broker who acts as a risk advisor.
How a risk advisor can help you
Rather than putting all the onus on you to understand and mitigate all of the risks your business might face, a risk advisor can take that burden off your shoulders.
They can help you uncover some of the hidden risks you might be facing, as well as understand what insurance products would be most appropriate to protect your organisation. They can even help you manage those risks more effectively to reduce the chance of an incident.
When your risks are effectively managed, a risk advisor can potentially negotiate a lower premium or a better policy so that you’re covered in case of an unfortunate event. Having the right policy in place, as well as an experienced advisor to support you, means you can get back up and running faster if something does go wrong.
Don’t let risks fall through the gap
The risks your business can face range from physical hazards to people-related vulnerabilities. Physical hazards can be the easiest to remedy; simply by identifying and removing or repairing them, you could dramatically reduce the chances of your business being affected. For example, if storing brooms and mops in a hallway creates a trip hazard, you could create a dedicated storage space for them in a closet, thus removing that hazard and keeping the hallways clear.
Other hazards may not be as easy to identify. For example, lock-up procedures may inadvertently create a risk of being robbed, so it’s important to review processes as well as physical risks.
Whether you’ve been running your business for a while or you’ve only just started, it can be easy for business owners to overlook risks even when looking for them. Bringing in an external risk advisor with experience in your industry gives you the best chance of identifying all of the potential risks. Once you know what risks you’re facing, you can decide what measures to take to mitigate and insure against them.
Don’t forget to review your position
Once you have insurance in place, it’s advisable to review it regularly to avoid inadvertently becoming underinsured due to changes in your business. This can include new equipment, new staff members, changing market conditions, and more.
As a busy business owner, it can be hard to find time to trawl through all the fine print and choose the right approach for your business. A risk advisor does that for you so you can carry on with building your business.
All of the insurance brokers across the NZbrokers network are trusted risk advisors with many years of experience. To find out more about how we can help you, contact one of our members today.