NIBA / Special Feature
Accessing the insurance market
Helping avoid underinsurance Many SMEs are underinsured, particularly for: ☑ Building replacement costs ☑ Equipment replacement ☑ Business interruption ☑ Professional liability exposures A broker should challenge assumptions and help ensure sums insured are realistic. 5
Reviewing contracts and insurance requirements
4
6
One of a broker's key roles is approaching suitable insurers and negotiating on your behalf. You should expect them to: ☑ Compare multiple insurers where appropriate ☑ Explain differences between policies ☑ Highlight differences in coverage, not just price ☑ Negotiate premiums and terms The cheapest policy is not always the best policy. Providing regular reviews Your insurance programme should evolve as your business changes. At least annually, a broker should discuss: ☑ Revenue growth ☑ New products or services ☑ New locations ☑ Acquisitions ☑ Technology changes ☑ New contractual obligations Significant changes should trigger a review before renewal. 7
If your business signs contracts with customers, suppliers or government entities, a broker should help explain insurance obligations such as: ☑ Required liability limits ☑ Professional indemnity requirements ☑ Cyber insurance requirements ☑ Hold harmless agreements ☑ Indemnity clauses They may work alongside your lawyer where specialist legal advice is required.
Keeping you informed about emerging risks
Managing claims on your behalf
9
8
This is often where broker value becomes most apparent. During a claim, your broker should: ☑ Assist with notification ☑ Help gather information ☑ Liaise with insurers ☑ Advocate for your interests ☑ Explain insurer requests ☑ Escalate disputes where necessary You should not feel abandoned once the policy has been sold.
A good broker should proactively discuss emerging issues such as: ☑ Cyber security threats ☑ Changes in employment law ☑ New liability exposures ☑ Climate-related risks ☑ Industry-specific claims trends The relationship should be ongoing, not limited to renewal time.
Meeting professional and regulatory obligations
10
Warning signs of a poor broker Consider reviewing your broker relationship if: 5 You only hear from them at renewal time.
Australian insurance brokers are regulated by ASIC and generally operate under an Australian Financial Services Licence (AFSL) or as an authorised representative. You should receive: ☑ A Financial Services Guide (FSG) ☑ Clear disclosure of remuneration and commissions ☑ Documentation supporting recommendations ☑ Professional advice that is in your best interests Many brokers are also members of the National Insurance Brokers Association (NIBA), whose members must meet professional and ethical standards.
5 They focus exclusively on premium cost. 5 They cannot clearly explain exclusions. 5 They do not discuss business changes during the year. 5 Claims support is slow or non-existent. 5 They provide quotes without understanding your business. 5 They never discuss emerging risks such as cyber or management liability.
A simple test Ask your broker:
" What are the three biggest uninsured or underinsured risks facing my business? " A quality broker should be able to answer confidently and explain practical options for managing those risks. If they cannot, you may not be receiving the level of advice an SME should reasonably expect.
NIBA .COM.AU / 61
Made with FlippingBook Digital Publishing Software