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How Property Insurance Can Protect Your Restaurant

Posted on August 15, 2024 | by | Posted in Uncategorized

Running a restaurant is an enterprise fraught with risks, which every successful owner must mitigate in order to survive. Some of these risks can be managed through prudent management, whilst others cannot. It is to these other risks – risks that cannot be mitigated through prudent management – that we turn to today as we discuss the role of property insurance in safeguarding your restaurant. With the right cover, it is possible to eliminate or significantly reduce nearly all of the otherwise unmanageable risks inherent in running a restaurant in Australia, as we discover below.

Understanding Property Insurance

A standard property insurance policy for a commercial building in Australia will normally include the following coverage:

• Building – Damage or destruction of the buildings your business occupies should be included in all good property insurance policies in Australia.
• Contents – The contents of your building should also be covered by a standard property insurance policy. Content refers to items not part of the building, such as tables and chairs, lighting and catering equipment.
• Public Liability – The main purpose of public liability insurance is to protect policyholders from compensation claims for damages relating to personal injury and death arising from negligence (on the part of the policyholder). If someone has an accident on your premises and it is found to be due to the condition of the property, this type of cover will prove to be essential.

Additional coverage designed specifically for restaurant owners may be included if you choose a specialised hospitality industry policy.

Key Coverage in Property Insurance for Restaurants

Property insurance normally includes several areas of coverage that are key for restaurant owners, including the following:

• Building Coverage – If your building is damaged structurally and needs to be repaired, building coverage will pay the costs that you incur. If the property is destroyed, the same coverage should pay for a replacement building. However, it is important to know that not all policies have provisions to pay for the cost of a replacement building: some only cover the current value of a building, which will not be enough in the event of destruction. Without a building, you have no restaurant, so this coverage is, of course, foundational.

• Equipment and Inventory Coverage – After the property itself, the next most important physical assets that your business owns are probably the kitchen equipment and your inventory. It is imperative you protect these assets with adequate insurance coverage, as food spoilage, breakages, and theft can quickly turn a profitable business into an unprofitable one.

• Business Interruption Insurance – If your property is severely damaged or destroyed, necessitating the closure of your restaurant, business interruption insurance will cover your ongoing running costs until you reopen.

Comprehensive hospitality industry insurance policies for restaurants and cafes in Australia should also include separate cover for glass breakages and money stolen on the premises by employees.

Tailoring Property Insurance to Your Restaurant’s Needs

The best property insurance policies for restaurants in Australia are written to cover the specific risks to which their policyholders are exposed. In other words, the best policy for you as a restaurant owner is one that is written to address the unique risk profile of your restaurant. If you have a particular problem with fresh seafood spoilage, employee theft or wine bottle breakages, a policy that includes additional cover in these areas will be the best choice for your business.

Managing Risks with Property Insurance

Property insurance can be tailored to help manage risks that would otherwise be difficult or even impossible to manage effectively. These risks may include:

• Flooding – Restaurants in certain locations are vulnerable to specific risks that businesses in other locations are not. For example, a beachfront café may be at risk of flooding and could be destroyed by a high tide, but inland eateries do not have to contend with such issues. Flood cover is included in some policies and is available either as an extra or excluded in others. It is important to consider these issues when shopping for restaurant insurance and purchase extra cover if necessary.

• Crime – It is important to consider local crime figures when purchasing cover for your property. Any insurer you approach will certainly consider the latest figures when calculating your premiums and from your perspective, it’s crucial to ensure that any policy you buy includes adequate cover for the most prevalent property crimes in the area.

• Specific Equipment Failure – If your restaurant is fitted with special equipment prone to failure, it may be necessary to request extra cover for the machines in question.

It may take some time to find an insurer willing to tailor their policies to suit your needs, so it’s a good idea to find an experienced broker who can do all the heavy lifting for you. Once they have identified some likely prospects, you can decide which one is right for your needs.

Additional Important Coverage

If you want to protect your business and not just your property, you may purchase additional coverage for:

• Data Loss/Critical IT Failure (Cyber Insurance)
• Interruptions to Utility Services
• Motor Vehicle Accidents (Commercial Motor Insurance)

Some insurers may offer these types of cover as additional extras, whilst others may offer them in separate policies. Motor insurance is almost always purchased separately.

Conclusion

It is vital to have sufficient cover in place for your buildings, contents, catering equipment and stock at a minimum. You should also consider adding optional coverage for risks unique to your business. By acquiring a property insurance policy that has been tailored to meet the specific needs of your restaurant business, you can ensure you are not exposed to unnecessary risk and maximise the odds of long-term success in the process. Don’t hesitate to contact Matrix Insurance to discuss your insurance requirements: we are Australia’s restaurant insurance experts and will be delighted to provide all the help and assistance you require

The top factors that affect your business insurance premiums

Posted on May 12, 2023 | by | Posted in Uncategorized

Starting a business or running a business consists of several elements. Employees, equipment, premises and much more must be accounted for in minute detail. Insurance is another crucial company outlay that cannot be overlooked. You hope you will never need to claim, but the consequences of not having the right policies in place when you need them can be catastrophic for the company and its capital. Business insurance is generally centred around potential property damage, liability and other potential issues dependent on the area of business.

Factors that will affect how much you pay for business insurance include but are not limited to:

Your area of business – The sector in which you operate will affect the cost of your insurance. For example, businesses that hold high-value stock such as jewellery, designer clothes or computer equipment may have to pay a higher premium than those that operate in different areas. Liability insurance is another example of how premiums can vary from sector to sector, with higher premiums for those that operate in higher-risk sectors such as the security or construction industry and lower premiums for office-based businesses.

Your business location – It is widely acknowledged that some areas of Australia are more prone to natural disasters than others. If your business premises are in a high-hazard area noted for bushfires or floods, you can virtually guarantee that your premium will be higher than those running a similar business in a low-risk area. Areas with a high crime rate can also affect the cost of property insurance, although the premium can sometimes be reduced with the right security systems in place.

Your insurance provider – Like any product or service you buy, some providers offer better value for money than others and this includes the insurance industry. Although you generally get what you pay for in terms of cover, exclusions etc, savings can sometimes be made if you bundle your business insurance in Perth or anywhere else in Australia, meaning that you buy all your insurance from one broker instead of several. This also saves time when dealing with the provider, as you’ll usually have one point of contact for all enquiries, payments and claims. Local brokers generally offer higher service levels when compared to national and multinational insurance providers.

Prior Claims – Every insurance company or broker will study your previous claim history when assessing the cost of your premium. Previous legal issues, constant machinery breakdowns and other issues that may have occurred in the past will all impact the cost of your insurance. Again, this may vary from provider to provider, so if you have a history of claims, it’s prudent to shop around.

Type of Cover/Period of Cover – As previously mentioned, the type of cover you require for your business will affect your premium. Regarding the period of coverage, many insurance companies offer a more competitive premium for an annual policy paid in one lump sum rather than a monthly recurring payment or similar arrangement. But it is worth noting that to stay competitive, some insurance companies may charge the same overall premium, whether paid annually or incrementally.

If you are looking for an experienced business insurance specialist in Perth or the surrounding area that can meet your needs, the team at Matrix Insurance can help. Using the information you provide, we will scour the market on your behalf to get you the best level of cover for your business. Get in touch to talk to one of our advisors or complete the online enquiry form for an obligation-free quotation.

The benefits of bundling insurance policies with one provider

Posted on April 18, 2023 | by | Posted in Uncategorized

The old saying, “You shouldn’t put all your eggs in one basket,” makes perfect sense in lots of scenarios, particularly when it comes to investments but does it work the same for business insurance policies? We think not. Read on to find out more.

What is bundling in regard to insurance policies?

In insurance terms, bundling refers to the practice of buying more than one insurance policy from the same provider. This ultimately makes life easier for the policyholders and, in some cases, can lead to substantial savings across a portfolio of insurance products.

Some of the notable benefits of bundling insurance include:

Save money – The cost-of-living crisis is affecting almost every business across the world, so any money saved regarding like-for-like services or products is welcome. For example, buying your public liability and vehicle insurance together from the same provider may be cheaper than the cost of two stand-alone policies from different providers. Although it is always prudent to shop around for cost-effective policies, you may be able to bundle your insurance for big savings from one provider, so make sure you check all your options before parting with your capital. Call Matrix Insurance Group and ask for a quote today, you may be pleasantly surprised.

One point of contact – Having a single point of contact for all your insurance policies is undoubtedly a major selling point for businesses looking into bundling. We all know how time-consuming and labour-intensive it can be to fill in the same forms time after time and have to furnish different insurance providers with the same information at different times of the year. Using a single insurance broker makes buying, renewing and amending insurance policies simple, they will have all your details on file making every single process as stress-free and seamless as it can be.

Building a solid relationship – In contrast to vast multinational companies, you can build a solid relationship with your provider if you bundle your insurance with a local broker. Your point of contact will recognise the loyalty and trust you have put in them and go the extra mile to find the best possible products for you, your employees and your business. Local brokers recognise the importance of community and the businesses that operate in them and as such, you won’t find yourself on hold for ages or getting connected to the dreaded chatbot.

It’s never too late to bundle – If you already have multiple policies with multiple providers but would like to make life easier, ask each provider for a quotation on all your held policies and see which provider is the most competitive. This will leave you in a great position to take up a bundling option when your current policies have expired. It’s also important not to forget about your overall insurance experience with a provider when deciding which one to choose.

The Wholesale Factor

Like most things in life, the higher volume of products/services you buy from one supplier, the cheaper they tend to get, but it’s important not to sacrifice coverage or elements of coverage to save a few dollars. Carefully assess your quotation, read the small print and ask questions to ensure that you are getting exactly what you need in terms of coverage. Unfeasibly low quotes should be taken with a pinch of salt as they will inevitably include some exclusions that may come as a nasty shock when the time comes to make a claim.

Picking the Right Provider

If you are looking for a new insurance broker rather than continuing with your existing provider, it’s important to perform due diligence before you sign on the dotted line. A word-of-mouth recommendation from a fellow business owner, colleague or friend is, despite the advent of technology, still the best way to find the perfect fit for your insurance needs, whether it’s a single policy or a bundle. If you have identified an insurance broker who you think ticks all the boxes, don’t just check their reviews/pricing structure online, call them to get a feel of the type of service you’ll receive when you engage their services.

If you’d like to find out just how convenient and cost-effective bundling insurance policies is, please call the experts at Matrix Insurance Group today. Aside from finding the right policies for your needs, you will find the levels of service we offer to be amongst the best in the sector. Although based in Perth, WA, we serve the insurance needs of companies nationwide who appreciate the personal touch we bring to each and every business relationship.

The Role of an Insurance Broker in Helping You Navigate Complex Insurance Policies

Posted on March 23, 2023 | by | Posted in Uncategorized

While you may be able to find a personal motor insurance policy without any expert assistance, finding and evaluating more sophisticated commercial insurance policies for businesses and public sector organisations is a different matter altogether. These types of policies can be very complex and confusing, even for those who are already familiar with the business insurance industry in Australia.

Fortunately, expert help is available if you know where to look. An experienced insurance broker can provide invaluable advice, clear explanations of highly technical industry jargon and specific policy recommendations. Below, we discuss how an insurance broker can help with complex insurance needs in a little more detail.

Understanding Your Needs

The first step in navigating complex insurance policies is to understand your own needs. An expert insurance broker can help you to assess your risks and determine exactly what type of coverage you need (and the extent of that coverage). If you own and run a small business in Australia, for example, you may need liability insurance, property insurance and workers’ compensation insurance just for a start. A knowledgeable insurance broker will be able to help you understand exactly what all of these different types of coverage are for and the level of protection that each one provides.

Comparing Policies

Once you are confident that you understand all of your commercial insurance needs, your broker can move on to helping you compare specific policies from different insurance companies. Well-established insurance brokers usually have access to a wide range of insurance products from a variety of different insurers, which means they are ideally placed to help you find the policies that meet your needs and budget perfectly. To ensure this is the case, you should pick a broker with broad market access such as Matrix Insurance Group.

Your broker will also be able to help you understand all of the terms and conditions associated with each policy that you consider, including the all-important exclusions and limitations clauses. This should make the task of choosing the best policies for your needs considerably easier.

Negotiating Rates

A well-established business insurance broker with a broad network of contacts should be able to help you negotiate better premiums with insurance companies in Australia, and sometimes better terms & conditions too. They have a thorough understanding of the commercial insurance market, along with all of the factors that influence the premiums that insurers ask for. Furthermore, if you are offered discounts that are tied to specific terms & conditions, your broker should be able to help you fully understand the implications of accepting those new terms in return for lower premiums.

Understanding Your Cover

One of the biggest strengths that a competent insurance broker has to offer is their in-depth knowledge and understanding of the market and the products it provides to businesses in Australia. This means they can easily help you to understand every aspect of the cover you purchase.

Assistance with Claims

When looking at how an insurance broker can help with complex insurance requirements, it’s important to remember that their support is also available after you have purchased a new policy and not just beforehand. More specifically, it is worth bearing in mind that they can provide invaluable assistance with claims. In the event of a loss, your broker should be able to help you file a claim and ensure that you receive the compensation you are entitled to. They can also help you understand the claims process and answer any questions you may have as it progresses.

Ongoing Support

A good insurance broker will provide ongoing support throughout the life of any policy that you buy through them. They can help you to make changes to your policy in the future, such as adding or removing coverage. They can also provide professional advice and support whenever you encounter any difficulties.

Do You Need a Business Insurance Broker in Australia?

Now you know a little more about how an insurance broker can help with complex insurance requirements in Australia, you should be in a better position to decide whether you need an experienced broker on your side.

If you are not sure whether the cover you already have is adequate or you want to make sure that you’re getting the very best deal possible on all of your commercial insurance policies, you definitely need to seek out a reputable broker. Even if you believe you have adequate coverage at the best price possible, we’d recommend consulting a specialist just to make sure.

If you happen to own, run or manage a business in Australia and you’re looking for specialist commercial insurance advice, please do not hesitate to call or message us. We have many years of experience in the SME insurance industry and would be delighted to provide you with all the assistance you may need.

What are common mistakes when buying insurance directly?

Posted on February 14, 2023 | by | Posted in Uncategorized

Throughout our time in the industry, we have witnessed many a catastrophe caused by small mistakes when purchasing insurance directly. When buying directly, it is far too easy to miss finite details. If you have spent any amount of time browsing the internet for the best insurance policies, you will know how confusing it can be. If you’re not equipped with the knowledge, it is a far safer bet to go with a broker. We have compiled a list of common mistakes people make when buying insurance, so hopefully, you won’t get caught out in the future. Remember, if you look after your business, it will undoubtedly look after you. 

Five costly mistakes when buying insurance directly

1. Being underinsured – Businesses far and wide enjoy saving money, but there are some corners you shouldn’t cut in the insurance game. If you book insurance directly, it can save time and money to go basic. Seeing as over 70% of Australian companies are underinsured, we have heard many horror stories. Making sure any potential damage is covered will mean avoiding any nasty payments from your own wallet. A good broker will be able to make sure your business is protected.

2. Not having the right cover – With the vast selection of insurance policies out there, how do you know which one is right for your business? If you don’t have the right policy, there are a few factors that could cost you a lot of money or even ruin your business. First of all, you will be wasting money on the wrong insurance, and then, if something goes wrong, the payout could be unmanageable. Also, certain businesses are required by law to have the right insurance; this is a mistake you can’t risk making. 

3. Unnecessary add-ons – We would like to say sometimes, but in reality, it can be most of the time. As confusing as it can be to read the intricate details of an insurance policy, it can be just as confusing when information is too vague. On countless occasions, we have spoken with clients who have doubled up on cover for no particular reason. For example, if you look at the key points of cover on an insurance policy website and don’t do any digging. It can appear that you aren’t insured in a particular area when actually, you are. This can force people to upgrade to a more premium policy or buy extra add-ons they don’t need.

4. Not providing enough detail – Anyone who has bought insurance directly and done it correctly will know the painstaking detail you need to provide. One incredible thing about brokers is that they will know every minuscule detail you need to provide to make sure your business is 100% protected. If you forget to give some information that might not seem important now, it adds a risk that your insurance provider won’t pay out when you need it most.

5. Not opting for comprehensive cover – If your particular industry sets a requirement for basic cover, that doesn’t mean you don’t need more. Not buying comprehensive can put your business at risk if basic insurance doesn’t cover it. You must ensure that every aspect of your business is covered for accidents and damage. For instance, you might need public liability, cyber liability, and machinery breakdown cover. However, instead of buying three different policies, a broker can build a bundle that covers every area of your business.  

Saving money is excellent, but as you can see, most mistakes people make when buying insurance happen when trying to dodge costs. This doesn’t mean you must splash out on the most expensive policy. The critical thing is paying attention to detail and knowing exactly what you need. The insurance world is tricky, and if you don’t know the ins and outs, we highly recommend seeking advice from someone who does. 

The next step to take

If you own a business in Australia and are worried about making any of these costly mistakes when buying insurance directly, there is absolutely no need to worry. Instead, you can take the weight off by consulting an experienced insurance broker who knows their stuff. Matrix Insurance Group is one of the leading brokers in Australia. We provide a multitude of insurance types, including many specialist areas too. With a catalogue of insurance providers and our expertise, it is now simple to find the right policy for you. 

Matrix Insurance Group is passionate about making the entire process a positive experience. We promise to provide a dynamic, professional, and reliable insurance brokerage based on genuine personal service. Though based in Perth, we service clients all over Australia and have received endless positive testimonials. So get in touch with Matrix Insurance Group today and chat with a professional and reliable insurance broker in Perth.