Maximising the return from a claim

Businesses that partner with a risk adviser have a better chance of maximising the payment from a claim than consumers who buy direct.

There are many reasons why a business would choose to use a risk adviser, not least to make sure that the coverage purchased is adequate for the individual business. Another key benefit of having a professional help with cover is that it helps maximise the payment from a claim.

Recent research into the coverage and claims experience from Australian businesses illustrates the point. Of the businesses surveyed, only 16 percent said they were covered for the full amount from a claim, while only 20 percent said they were covered for less than half the cost of the event insured against.

At the other end of the scale, one-in-10 claimants received payment for the full amount of the damage incurred.

For businesses that used a professional risk broker, the numbers tilt upwards. Just under one quarter of claimants received the full amount.

Broker assisted claims that resulted in less than half the claimed amount being paid sat at 13 per cent, compared to 26 per cent of direct buyers.

Aside from the assistance in processing a claim and ensuring the claim is handled properly, the benefit begins at the origin of the coverage. Risk advisers ensure that the coverage purchased is fit for purpose and suitable for the businesses, while direct purchasers can purchase cover that doesn’t cover all eventualities, or pay a premium for cover that isn’t relevant for their business — which only becomes evident when a claims process has begun.

Another interesting detail is that there is an increased level of happiness with the claims process by those who enlist the help of a professional.

Much of this comes down to having a professional assist from the outset, who has the experience in the industry to effectively guide a business through the process of building up an insurance package that will most effectively cover any business in the event of disruption.

For many businesses, purchasing insurance is done out of necessity rather than a compelling desire to protect the business, as individuals often expect that a potential negative event will never happen to them. The claims process is the moment, therefore, that provides the real test of an insurance experience, and the facts are that that experience is better by being assisted by a professional.