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The importance of reviewing your insurance

by Dean Brumby, Authorised Representative, Austcover

The Global Financial Crisis (GFC) has forced businesses to sharpen their focus on not only their income streams but also their cost base. For many, this has meant reviewing suppliers' services and charges, to ensure they are receiving competitive pricing and value for money.  Assessing the service and advice provided by your insurance broker is no exception, and this review should be undertaken annually.  With the GFC impacting on cash flow and turnover, company directors may now form a different view of risk within their business.

Austcover Pty Ltd is one of the largest privately owned insurance broking firms in Australia, with offices in Brisbane and Sydney. As part of our mentoring and partnering process to CFOs, we highlight some of the easy steps to follow when reviewing your insurances:

1.  Partner with a broker that will undertake a full review of your risk exposures to indentify any shortfalls on a regular basis and not simply "rolling over" the same insurance program.
2.  Review turnover and asset values as these are key drivers of premiums. If there have been any reductions in these areas, this should be taken into account by underwriters when calculating premiums.
3.  Check whether you have ceased any product lines or services that no longer need to be insured under your policy.
4.  Consider whether you are prepared to carry a higher excess in order to reduce your premium.
5.  Review your claims history to ensure all details are accurate.
6.  Ask your broker to demonstrate that they have presented your business to the majority of underwriters and insurers within the market, so competition is created.
7.  Decide whether there is any part of your business that you are prepared to self-insure.

By following these guidelines it will help you to review and assess the service you are currently receiving from you insurance provider and can assist in adding value to your insurance program.

At Austcover we provide clients with professional advice, efficient assistance, and assurance their financial and business interests are well secured.

For more information contact Dean Brumby on 07 3237 8627 or 0402 127 280, email deanbrumby@austcover.com.au or visit www.austcover.com.au.

Austcover Pty Ltd ABN: 46 073 425 662 Australian Financial Services Licence Number 241799