Risk & Insurance
Don't just pick one
Here's how to be sure you've got the right insurance.
Last updated 10 Mar 2021

Imagine looking forward to a quiet night in, tuning into your favourite streaming service, only to find yourself an hour later still browsing through the options, unable to decide what to watch – sound familiar? This conundrum of too much choice was something we thought impossible a few decades ago, but is very much a reality in current times. And taking out insurance for your business is no different. With the wide range of providers, brokers and policy types, it’s only normal to feel overwhelmed when deciding which insurance policy to take out, leading many business owners to settle for the lowest price they find without considering the features and coverage.

While price matters, it’s also important to consider other factors when deciding which insurance policy to select for your business. Here are some factors to consider when comparing insurance policies and providers to be sure you’re making the best decision for your business:
 

Automatic Cover vs Optional Extras

Most insurance policies have optional extras that are available at an extra cost, but there are some insurers that offer these additional features automatically as part of their policies. When you’re looking at different insurance policies, remember to examine what is included automatically and what is available as an optional extra. It may be that the cheapest option does not include some of the coverages offered under the policy that costs slightly more.
 

Run-Off Cover

This is a feature under Professional Indemnity (PI) policies and applies to any business involved in providing advice as part of their service. Run-off cover continues to provide cover after you stop practicing or retire. It is important because you may receive claims from clients alleging your advice caused them loss, even many years after the service was provided. If you take out PI, remember to ask about run-off cover, as some policies offer this automatically and without charge depending on your circumstances, while under others, it needs to be applied for at an additional cost.
 

Rewards for Loyalty

Some policies offer certain benefits for being loyal to the one insurer. These benefits could save you a substantial amount of money, whether that’s in the form of premium reduction, or an excess waiver. So be sure to check with your broker or insurer to see what perks you may be entitled to by staying loyal to the insurer you are with.

Claims Support

When taking out insurance, ask about the insurer’s process if you need to make a claim. Making a claim can be stressful, so the last thing you’d need at that point is a lengthy process. You may wish to speak to a person during a claim rather than go through the process online so ensure the insurer you’re selecting has a dedicated claims phone line (in addition to an online lodgement process). When selecting your broker, also be sure to check that the broker will act as your advocate during a claim and be willing to challenge the insurer’s decision if needed.
 

Industry Expertise

You’re an expert in your field, so your insurance broker should also be. It’s crucial to choose a broker who has a deep understanding of your industry, stays on top of emerging risks and regularly reviews their policies to ensure they cover the risks adequately. This will help ensure you’ve got cover that has been designed specifically with the needs of your industry in mind.            

Your business growth

As your business grows, it’s likely your risk needs will change – not only in terms of insurance coverage but also with additional services you may require. When choosing between different brokers consider which one will be able to meet your additional needs as your business grows. Selecting a broker who can provide you with additional services, and can help your business to grow will help ensure you have the right support at every stage of your business’s life.

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This information is intended to provide general insurance related information only. It is not intended to be comprehensive, nor does it, or should it (under any circumstances) be construed as constituting legal advice. You should seek independent legal or other professional advice before acting or relying on any of the contents of this information. Aon will not be responsible for any loss, damage, cost or expense you or anyone else incurs in reliance on or use of any information contained in this article.