Business owners across Australia are busy preparing for the EOFY as we enter the fourth quarter. We know that at this time of year your to-do lists are exhaustive and reviewing your insurance probably isn’t front of mind.
However, as many small business owners take out or renew their insurances at the start of the financial year, your renewal date may be fast approaching. At such a busy time, it can seem easier to automatically renew your existing insurance policy, but this may not be in the best interest of your business.
When you renew your insurance, it’s important to review your business and how it has changed in the last year as you may be exposed to new risks. 2020 has brought about a change in the way we work, where we work and has seen more businesses diversify their services than ever before. Whilst this may have been necessary change thanks to Covid-19, many businesses have been focused on surviving the pandemic and have not taken the time to consider the broader risk of these changes and the measures that may be required to protect the business moving forward.
It is more important than ever to make time to review your business exposures. Risk management is a process in which businesses identify, assess and treat risks that could potentially affect your business. Generally, this process involves identifying the risk, assessing the risk, managing the risk and then monitoring and reviewing the risk.
Deciding on the amount and type of risk you are willing to take on as a business can be challenging. Some risks may be critical to your success, however, exposing your business to the wrong types of risks can be harmful. It is recommended that you seek the advice and input from your business resources, such as your insurance broker, accountant or solicitor, when considering your options.
Whilst you may only consider involving your insurance broker at the ‘Managing Risk’ stage (ie – purchasing an insurance policy) there are many benefits in seeking your brokers input early on as their knowledge and expertise will likely offer a different perspective. Armed with a well-rounded understanding of your entire business, your insurance broker is your best resource when considering how certain exposures can impact your business.
Whilst we, as insurance brokers, are instructed by our clients when arranging insurances, it is our professional duty to discuss with you all aspects of risk to your business so that you can make a considered and well informed decision as to how to manage it – not all risk needs to be transferred to an insurance policy!
In order to assist our clients with a better understanding of your business exposures, Planned Cover will be providing a “Risk Review” to all clients, starting with June Professional Indemnity renewals. The Risk Review documents will be tailored to your profession and provides a risk rating (based on real insurance claims data) across insurance product lines that may apply to your business. Examples of claims common to your profession are also included, along with a set of questions that you may use to help identify your risk exposures.
When you receive your Risk Review, we encourage you to take the time to look over it and consider how this information applies to your business. Please contact your account manager to discuss the Risk Review further and seek advice on your uninsured or changing exposures.