IBA Unveils Finalists for 2020 Awards
It’s our great pleasure to announce that several members of the Austbrokers family have been recognised as finalists in the Insurance Business Awards 2020.
There are various types of insurance available to protect businesses in case of an adverse event, from building and contents insurance to business interruption and liability insurance. Failing to take out adequate insurance could lead to increased risk and, potentially, financial losses for some businesses.
Small to medium sized enterprises (SMEs) tend to have the highest rates of underinsurance but no business is immune. Recent research showed that while business risk and equipment breakdown were the most prevalent insurable concerns of SMEs, about 80 per cent of the survey respondents didn’t have insurance cover to address those concerns.
What is underinsurance?
There are three key ways that your business can be underinsured:
How does it happen?
Many companies become complacent because they don’t get professional advice. Instead, they choose policies online, pay their insurance premiums, and assume they’re covered. Too often, they don’t find out until it’s too late that their insurance policy doesn’t cover them for the event they’ve just experienced, or their insured amount is far less than what they actually need to get the business back on its feet. Underinsurance can be more concerning than having no insurance because your expectations will not be met.
What should I do now?
Take the opportunity to review your policies with a trusted advisor to make sure you’re adequately covered for the events that could happen, and to ensure you’ve considered all aspects of a disaster. This includes not just damage to or loss of property but business interruption and other potential liabilities.