Insurance can be a confusing world! Here's some common questions our insurance brokers get asked which may also help you. We're just a call away if there's anything else we can help with.
What kind of insurance do I need for my business?
The insurance that is needed for any business can vary greatly depending on the occupation/industry in question. Typical business insurance policies may include the following:
- Public & products liability
- Business property
- Business interruption
- General property
- Mechanical breakdown
- Commercial motor vehicle
- Management liability
There are also insurance policies that, in addition to the above, are recommended for businesses that give any sort of professional advice. Examples of this are as follows
- Professional indemnity
- Directors and officers
Any business that operate using online servers, cloud based programs and or store personal information, are recommended to take out cyber insurance.
The above insurances, while strongly recommended for all business owners, are optional. This is not the case however when it comes to workers compensation Insurance as any business that employs staff must have workers compensation insurance in place as per the respective state legislation.
How much would I insure my business for?
It is important to ensure your business is adequately insured, and its individual merits as businesses can vary greatly in size, industry, and risk exposure.
When establishing how much to insure your business for, consider things such as turnover, profit, value of property such as the building, contents, stock or tools. It is also important to consider what the potential financial impact could be to the business when you are not able to trade for extended periods due to an insured event, for example fire or machinery breakdown.
Another key point to consider is ensuring that your insurances values/limits are reviewed regularly. Businesses change all the time, and the insurance should be updated accordingly to avoid being under insured.
Will a company vehicle be covered with business insurance?
In short – no. A typical business insurance policy will consist of cover for business property such as contents and or stock, business interruption, public and products liability, Theft, machinery breakdown, general property and electronic equipment. Company vehicles must be insured separately under a commercial vehicle insurance policy. Depending on the business type, you may also be able to insure them under a private motor insurance policy but noting the vehicle is for business use.
Some insures may allow you attach a commercial motor Insurance policy to your business insurance policy, however they are insured separately.
What does an insurance broker do?
An insurance broker is a professional adviser who is an expert in insurance and can also assist with risk management. Insurance can be incredibly complicated to fully understand, and an insurance broker can help you understand the details of a policy and also work out what level of cover you need so that you are adequately covered. Using a broker doesn't necessarily cost more.
In most cases, it costs less because brokers have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf. Insurance brokers deal with a range of insurance companies directly and in some cases they can access policies that are not readily available to most customers. If the worst happens and you do have to make a claim, a broker will act on your behalf, liaising with the insurance company to negotiate the best possible outcome for the client. Speak to the team at Carbon Insurance broker to see how we can help you.
What's the process of making a claim?
When a claim is lodged, the insurer will point an assessor to assess the claim. Once the insurance approval is received, repairs to the damaged property begin. Generally, the first part of the process (lodging the claim, insurer appointing assessor) depending on complexity can take 1-5 days. The repair will then depend upon the nature of the damage, anywhere from two weeks to several months.
What is premium funding?
Premium funding is a payment option that allows businesses to preserve the cash flow for their business. The premium fund will pay an insurance policy upfront, then the client pays back to funder plus a margin/fees and charges for the service. Carbon Insurance can arrange this when required. Learn more about premium funding
I have the funds to pay my insurance premiums upfront - why should I consider premium funding?
Whilst you may have the cash upfront to pay your insurance premiums, could you earn a better reinvestment rate by funding your premiums and therefore using your surplus cash back in your business?