Underinsurance

Posted on December 04, 2020 | by Alex | Posted in Insurance

Are you underinsuring your business to save money?  

It’s not worth the risk! 

When times are tough, it’s common look at where we can cut costs in our lives. 

Unfortunately for some people with small businesses, one of the first areas they will  look at for cost-cutting will be their insurance. 

Do I really need insurance? Do I need so much insurance? How likely is it that  something bad will happen and I will need to make a claim? 

These are some rationalisations that business owners may ask themselves when  looking at ways of saving money during tough times. But while reducing your  insurance policies may save you money in the short term, it may cost you everything  in the long run. 

Being underinsured leaves businesses vulnerable. Nobody knows what may happen  tomorrow, next week or next month; and if you don’t have the right insurance cover,  it can be a disaster if something terrible happens to your business. 

Are you sufficiently covered? 

One in 10 Australian businesses have no insurance cover, and many more have  insufficient cover, meaning many businesses are being left vulnerable. If you are  questioning whether you are paying for cover that you could go without, ask  yourself if you are covered in the following circumstances: 

• Natural disaster: Anyone in Australia knows just how easy a natural disaster can  happen, and the dire impacts it can have on businesses. Catastrophic bushfires  followed by a global pandemic should be enough proof that some things are  out of our control, and that it’s a good idea to be covered against them. 

• Legal action: If a customer decides to take legal action against you, are you  sufficiently covered? If a customer, staff member or member of the public feels  they have a reasonable claim, and if your public liability insurance and public  indemnity insurance isn’t up to date, you could lose everything.  

• Damage to premises or stock: A simple break in at your premises could turn out  to be costly without sufficient insurance. A good business insurance package  includes business interruption cover, which is important during down-time while  your business closes to make repairs. Business insurance will cover you for  products that are damaged or stolen. 

• Staffing: If you have staff, you need adequate insurance for them also, including  Workers’ Compensation Insurance.

Time for an insurance check! 

If you think your business may be uninsured, the best thing to do is speak to a  professional broker. Likewise, if your business is going through a tough time and you  do need to save money, speak to your broker before you cancel any policies. They  can advise on ways you can save money while still having adequate cover, and will  look for the best insurance policy to suit your budget. 

Don’t risk it any longer, speak to Matrix Insurance today, the leading insurance broker in Perth.