There are many aspects to consider when you’re setting up a new business. Some of these include creating the best product or service, packaging, and marketing. Despite being an equally important factor, finding the right insurance policy is often pushed to the back burner.
One of the reasons for this is that the average first-time business owner is either too busy or believes they will get to the nitty-gritty of insurance later on. To avoid having to deal with an eventuality before you have set up insurance, experts recommend enlisting a business insurance broker immediately after launching your business.
Defining the Role of an Insurance Broker
As the name suggests, an insurance broker is an industry expert whose main function is to provide professional guidance on finding the best business insurance for your company. By acting on your behalf, an insurance broker will perform the following functions:
- Assessing individual business risk profiles
- Comparing policing across multiple insurers
- Negotiating competitive terms based on your business needs
- Assisting and supporting you throughout the entire claims process
Simplify Business Insurance by Outsourcing it to the Professionals.
Recent studies have shown that at least two-thirds of Australian small businesses are either not insured or are underinsured. This can be attributed to the following:
- Small startup owners don’t think their tiny company needs insurance
- Business owners believe they’ll get to it when their business is up and running and turning a profit
- Insurance options can be overwhelming, and sorting through them can be time-consuming
The reality is that every business, no matter how big or small, needs some form of business insurance. Business owners don’t have to struggle with sorting through the options and calculating costs. Our team of experts share a few of the reasons why an insurance broker can simplify the whole process on your behalf.
- Industry-Specific Expert Knowledge to Share
The number one reason you should align your business with an insurance broker is that they have industry-specific expertise. Not only do they know what eventualities you will need to cover, but they also know which options will match your budget and long-term needs.
Once a policy has been chosen, they will be able to simplify explanations, assist with submitting the necessary documents and also assist when there’s a claim. Brokers will be able to advise you on the most effective and streamlined processes that will save you time and money in the long run.
- Brokers Use Expertise to Identify Your Business Risk
As a new business owner, your main focus in setting up your startup is primarily to get your company off the ground. You might not immediately identify the risks your company could face.
An insurance broker won’t only assess the risk but also identify the unique requirements of your specific business. Once you understand the prospective risk, it becomes easier for you to put the necessary policies and contingency plans in place.
- Direct Contact With Industry-Specific Insurers
A huge benefit of using an insurance broker is that they already know the best insurers in specific industries based on your risk factors or industry trends. This not only makes finding the right insurance easier, but also streamlines any query and claims processes.
- Understanding of the Fine Print
Choosing a popular insurance policy you found online could seem easy enough. When you need to claim, though, there could be issues related to the “so-called fine print.” Suddenly, there are exclusions or criteria that seem to pop up out of nowhere.
Your insurance broker will be able to scrutinise each contract, agreement or policy and identify “fine print” issues that could present a problem down the line. This will give you full clarity on what to expect in terms of exclusions, payout turnaround times and any additional excess fees.
- Will Advise You of Necessary Updates and Increases
Another common mistake start-up business owners make is assuming the insurance cover they invest in at the beginning will stay the same as the business grows. An insurance broker will be able to identify when it’s time to upgrade or increase insurance policies.
Upgrading your cover as your business grows ensures that the whole business remains covered, especially if the company is growing. It also lessens any potential issues there could be when it’s time to submit a claim. The reverse is also true. If you streamline your business or sell off some of your assets, your type of insurance coverage will have to be reviewed.
Final Thoughts
Business insurance is essential for any organisation which including all Australian start-ups and small businesses. Finding the right insurance best suited to your business can be challenging if you’re unfamiliar with how to navigate your way around the many options on the market.
Opting to enlist the services of a certified insurance broker is an effective way to get the right insurance at the most affordable rates. This gives you peace of mind that your business is protected against the eventuality!
