If you’ve had to make a claim on your own, it can feel like a daunting process from start to finish. It doesn’t help that insurers are constantly being painted in a negative light, depicting them as difficult and uncommunicative. While some might experience a less than favourable outcome, it isn’t always the case for everyone else. The good news is that you can have an uncomplicated claims journey, considering all necessary documents are in order and you’ve engaged yourself with a trusted broker who can be your advocate throughout the process. We’re here to shed some light with hopes of putting your mind at ease in the event you find yourself having to lodge a claim.
It is without a doubt that brokers have extensive experience with the claims process, and it is their job to make it as simple as possible for their clients. As we mentioned before, insurance claims can be complex, but with a broker’s knowledge and familiarity working with insurers, they know how to manage claims and disputes that may occur.
Deloitte Access Economics released a report in September 2020 outlining how the support of insurance brokers throughout the claims process can have a better outcome on their client’s case, particularly in:
1. Saving time
The report noted that over 40% of SME clients found that their claims process was easier with a broker’s support. From managing communications throughout the repair stage and arranging for quotes, the broker handles every aspect of the claim while the client focuses on getting back to trading as efficiently as possible.
2. Being your advocate
Your broker’s main role is to help and support you through the insurance process. They’re there to ensure you’re covered according to what you need and provide advice while keeping your best interests in mind. Brokers bridge the gap between you and the insurer but their M.O. is to ensure that you receive the best solution possible. Their positive relationship with insurers allows them leverage when managing tricky and unusual cases. Plus, it’s always good to have someone you can turn to for emotional support while going through the claims process.
3. More favourable claims payout
Deloitte’s report also found that those who engage a broker are more than twice as likely to be fully covered for their claims and had a higher amount of loss covered. Almost 90% of broker clients were covered for more than half of their claim, as compared to direct buyers at 75%. This tells us that an experienced broker would know how to tailor a product package for their client so that in the event of a claim, they are well covered to receive a higher payout.
Client relationship is an important aspect of a broker’s role. When you engage a broker, it is usually for the long term. A broker isn’t someone who’s there only when you need insurance. They’re proactive professionals who check in on you periodically to ensure that your needs are met and that your insurance reflects your business’ goals. They’re also up to date with the latest industry news that could impact your policy so you can prepare ahead of time.
With that in mind, if you’re in the market for a skilled and experienced broker to assist with your insurance needs, our doors are open to you. We offer a wide range of products and services for SMEs in various industries. Our team will work with you to implement a suitable insurance plan designed for your business. Get in touch with the team today, and let’s see how we can help!
Important Note: All insurance policies have exclusions. Please refer to the Product Disclosure Statement or Policy Wording to decide whether an insurance policy meets your needs.
If you own commercial property of any size or type, then you should consider commercial property insurance. We’re talking anything from an office building to an industrial warehouse, from a cold storage facility to a retail space, and beyond.
If you have financed the purchase, renovation, or fitout of your property then you may actually be required to have property insurance to secure your loan. This can also extend to finance for your contents, stock, or machinery.
Likewise, other contracts you have relating to your property or contents will often contain conditions regarding property insurance, so make sure you have a good look over all of your paperwork. Fortunately, this is something an experienced broker can help you with.
Why do you need commercial property insurance?
You may have just found out that you need to consider property cover, let’s look at why it is a critical part of a sound risk management strategy for any commercial property owner.
You obviously purchased (or are purchasing) this property for a reason, and at the end of the day that reason is to generate future income.
Ask yourself the question – if your property is damaged beyond use, could you afford to repair or replace it without insurance? Or even, would you be able to continue to produce income from your business if the worst did happen?
If you answered no, then you need commercial property insurance to protect your business from these situations.
Commercial property insurance is designed to cover you as an owner, and protect you against exposure to the risks of owning property. That said, not every property policy will suit your unique needs, a qualified broker can assist you in finding the best insurance that covers your needs.
What does commercial property insurance cover?
In general, commercial property insurance covers your property and income for damage arising from tangible events. These can include storms, fire, floods, theft, vandalism and more. There are often optional sections of cover you may wish to add on, such as machinery breakdown, electronic equipment, and general property/tools of trade.
There are two main types of commercial property policies: business pack insurance and industrial special risk (ISR). The most notable difference between the two is that an ISR policy covers your property against damage unless an exclusion is specifically made, whereas a business pack only covers defined events, for example, fire or theft.
An ISR policy may sound preferable, however they are usually only available for property with a combined asset value of over $10 million (some insurers will occasionally consider $5 million).
A broker can help you determine which kind of policy is appropriate for your assets and risks and even tailor cover to fit your situation more effectively.
How much does commercial property insurance cost?
As with all insurance, there are a number of factors that will affect the price of your premium. The average cost of commercial property insurance changes based numerous risk factors considered by insurers. These are all worth keeping in mind when purchasing or making changes to your premises.
The location of your property
The construction of your buildings
The security of your premises
The fitout of your property
The stock held on your property
The equipment held on your property
The size of your property
The age of your buildings
The business activities undertaken at your premises
For more information on how these considerations affect your premiums, and what you can do to avoid higher costs, speak to an experienced broker.
What should I consider when buying commercial property insurance?
Any insurance policy will only work effectively when it is suited to the specific circumstances it covers. The most important things to consider are: your property’s unique risks and whether the policy covers those, and whether the limit of the policy would be enough to rebuild the premises and your business if you suffered a total loss.
An off-the-shelf commercial property policy is likely to have exclusions that may make it inadequate for your needs, it may also be missing important additions relevant to your unique situation. A full-coverage policy is another option, but it will cost you more.
Price is obviously an important consideration for any business, though be warned that the cheapest policy rarely provides the best coverage. The excess you set will also impact your premiums, but it should be a realistic amount you can afford if the worst does occur.
On that note, underinsurance is becoming a prevalent concern in today’s market. Having a replacement cost valuation completed will help you determine the amount you need to insure your property for. Also, stay vigilant with property market changes and keep your policy up to date if you make any alterations or additions to your premises or if tenancies change.
At the end of the day, the best insurance for commercial property and how much it costs will come down to your individual space and your business’s specific needs. Fortunately, a qualified insurance broker can assist you in determining those.
What should I watch out for with commercial property insurance?
Make sure you gather as much detail about your property and its construction as possible, as insurers will expect full disclosure of anything that is a concern. This could be something common like asbestos, or something less obvious like a specific brand of cladding or machinery that has a higher risk factor.
Remember that commercial property insurance is separate to liability insurance, while there may be some overlap, it is good practice to have both types of cover to protect your business.
A solid piece of general advice is to review all documents as soon as you get them, you should also be provided a certificate of currency that stipulates your cover limits. Continue to revisit them regularly, particularly if you make a change to the building or tenants.
Finally, revisiting the issue of underinsurance, if you are found to have failed to insure your property for a reasonable value you could be held accountable for a percentage of the repair or replacement costs in the event of a loss. Using a qualified insurance valuation expert to make sure your property is insured for an appropriate amount can protect you against this risk.
Where should I go from here?
If you have determined that you may need commercial property insurance, having a broker do the heavy lifting can be a good assurance, and help make the process easier and more efficient. There are a lot of policy wordings to read after all.
At East West Insurance Brokers our team has several decades of combined experience in commercial property insurance, and we are here to assist you through the process of getting your business appropriately covered, and keeping it that way.
From the initial identification of your unique risks, to customising a policy to suit you and your business, you can trust our friendly and knowledgeable insurance advisors to aid you on your journey.
Get in touch today for a commercial property insurance quote tailored to suit you.
