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Importance of Insurance Coverage in Business Contracts
Importance of Insurance Coverage in Business Contracts

Posted on January 18, 2023 | by | Posted in Insurance

Certain types of insurance cover can be mandatory for businesses in Australia, such as public liability insurance, workers’ compensation insurance and third-party personal injury insurance. Other types of cover, including building and contents insurance, goods in transit insurance and machinery breakdown insurance, are normally optional. However, if you want to protect your business from unnecessary risk and ensure its future survival, you will not consider these additional policies as optional. A well-thought-out and comprehensive business insurance strategy is key to the survival of any modern commercial organisation. One area to which you should pay particular attention, and which is the focus of this article, is insurance against losses that your business may incur when entering into contracts, either with customers, suppliers or service providers.

Insuring Against Potential Losses in Business Contracts

All businesses enter into contracts in one form or another, whether they be for the supply of goods and services or for some other purpose. During the life of these contracts, your business may routinely expose itself to potential losses as a result of legal action on the part of customers or business partners. It is imperative to protect your business by obtaining adequate insurance against such losses, with policies that may be of one or more different types.

Below, we have listed 5 of the most important types of insurance policies that you can use to protect your business against potential losses deriving from its performance of contracts. The first two types are designed specifically for this purpose. The 3rd, 4th and 5th types can be used to provide additional cover for losses that may arise as a result of your company’s performance of contracts or for losses incurred as a result of its day-to-day commercial activities.
Whether you are interested primarily in protecting your business with insurance in partnerships or protecting your business when entering into one-off contracts with third parties, all of the following types of insurance may be of benefit to your organisation.

  1. Contractual Liability Insurance – This type of insurance was created especially to provide cover for the liabilities that a commercial organisation assumes when it enters into contracts, either with individuals or with other businesses. In addition to purchasing standalone contractual liability insurance policies, it is also possible to obtain this type of cover by including an exception to the normal exclusion of contractual liability that is present in most general liability insurance policies for businesses. However you obtain your contractual liability insurance, you need to be aware that it will only cover your business and its performance of legally binding contracts. Any contracts that are not legally binding will not be covered.
  1. Professional Indemnity Insurance – Professional indemnity policies are most often used by individuals and organisations that provide professional consultancy services, such as lawyers and accountants. However, they are also useful to companies that make bespoke physical products, to provide cover for legal action that may be taken by customers in the event of delivery delays. For example, a company that builds boats may purchase professional indemnity insurance that covers claims by customers for losses incurred as a result of late delivery of sailing vessels. If you are in the process of researching insurance considerations for small business partnerships, professional indemnity insurance should be high on your list of policy types to investigate further.
  1. Product Liability Insurance – Product liability insurance provides companies with cover for losses that may be incurred by customers as a result of manufacturing defects or design faults. These potential losses may include damage to property, injury or death. They may also include psychological damage sustained as a result of manufacturing defects or design faults. Such insurance should cover your business for losses that may occur during the life of a specific contract as well as for losses that may be incurred by end users who purchase your products from third-party suppliers.
  1. Management Liability Insurance – A policy that includes management liability cover can be used to pay for losses that occur as a result of unethical or illegal acts committed by individual managers or directors of your company. If these acts cause contractual business partners to sustain losses, such a policy may cover these too.
  1. Cyber Liability Insurance – This is a specific type of technology insurance that is designed to cover losses your business may sustain as a result of hacking or other forms of cybercrime. In the event a contracted business partner’s private data is exposed as a result of such activity, a cyber liability policy could cover any related financial losses sustained by the partner.

If you would like to learn more about the different types of business insurance available in Australia or you wish to discuss specific strategies for insuring against potential losses in business contracts, contact us now.

What Does the Insurance Broker Do When Filing a Claim?
What Does the Insurance Broker Do When Filing a Claim?

Posted on November 28, 2022 | by | Posted in Insurance

Do you need to file an insurance claim because you’ve recently experienced a loss? Personal or professional, this is when the broker’s role in the claims process demonstrates its value. Brokers are valuable when purchasing an insurance policy and when it comes time to file a claim. Following an insured loss, it is the broker’s responsibility to ensure a smooth and stress free resolution. Throughout the claims process, numerous considerations must be made. Some are complicated, whereas others may be simpler. An experienced broker will guide you through the entire process. This is one of the most important benefits because they are there to serve you.

In this article, we will be answering the question; “What is the role of the insurance broker in the claims process?” so you can have peace of mind and focus on what’s important when facing a loss.

How can insurance brokers help in times of claim?

Dealing with a loss is stressful enough as it is, and we are fully aware of that. That is why we suggest hiring a broker to lessen the burden on your shoulders when handling a claim payout. Here, we provide you with the benefits that a broker can bring to the table, so you can better deal with your current situation:

  1. They Will Help Guide You Through this Complex Process

Without an insurance broker, you will have to deal with the stress of the incident as well as the uncertainty of whether or not your insurance will fully cover the loss, liability, and medical costs, depending on the type of catastrophe you’re dealing with. Take into account the actual process of filing a claim. It is complicated and confusing, and you need to take the time to read the fine print on your insurance policy to avoid overlooking some crucial steps with costly results. Brokers are highly experienced claims handlers who know precisely what is required to file a claim in accordance with the policy. If you work with an insurance broker, you will only need to inform them; they will handle the rest. Notably, the broker will be aware of the specific details that the insurance company must include in the claim.

  1. The Broker’s Main Focus is the Client

The client’s time is the most essential aspect that all brokers prioritise, especially after a tragic incident. The broker’s role in this process is to help you save time, money, and energy. Although the brokers have a relationship with the insurance provider, you, the client, are their primary concern. They will advocate for your needs and wait patiently on hold to obtain a quicker resolution. Clients value the empathy and emotional support they receive throughout this process, and all brokers keep this in mind. Typically, filing an insurance claim follows a negative occurrence. You will develop a sense of trust when you have access to an experienced broker who fully understands your situation.

  1. They will Not Betray your Trust

There must be complete assurance between you and your broker. Ultimately, you will be placing your trust and future in their hands. The broker seeks to comprehend your position, resulting in enhanced communication and confidence. When a problem arises, the client should contact the broker. Having a personal relationship with your broker allows you to call them confidently, knowing they will solve your problem. If you purchase your insurance online or from a large, unknown entity, there is no reliable point of contact. With a broker, you always know who to contact, and it’s simple to explain the situation to them.

  1. They Will Handle your Files and Organising your Paperwork

Part of why the claims process is so complex is that the insurance company takes elaborate steps to ensure they fully understand how the loss occurred and where liability must fall. With a lot of money at stake in liability claims and property replacement costs, you can bet they will want you to prove why your claim must be honoured. Your broker will know as soon as you notify them what evidence to collect. If it’s an auto accident, you will need to take as many photos as possible. The broker will help you document the incident in a manner that paints as clear a picture as possible to remove any potential of your claim getting rejected.

You need to understand that the adjuster who the insurance company will assign to investigate the accident primarily looks out for the insurer’s interests, not yours. Once they have researched, they will study your policy document to check for what can and shouldn’t be covered. Finally, they will inform you of the claim payout.

  1. They will Ensure a Favourable Payout

It is preferable to have an insurance broker handle the process to increase the likelihood of a quicker and more favourable claim settlement. 

A promising claim payout for a client is a reflection of the ability of their broker to present a convincing argument to the insurance company. 

Insurers concur that clients who involve brokers in the claims process are more likely to receive higher claims payouts. They have more experience dealing with insurance adjusters. They are also skilled at arranging your files to obtain the maximum payout possible.

On your own, the numerous, complicated forms and lengthy procedures will exhaust you to the point that you will accept whatever the insurer decides to pay out. Therefore, an insurance broker will assist you in selecting the best insurance products for your needs and ensuring that the policy pays out in the unfortunate event of a claim.

Bottom Line

Working with an insurance broker can guarantee that you are protected against the risks you face. The broker handles everything for the client, from assisting with forms to compiling the required documents and information to support the claim. This simplifies an otherwise overwhelming process, thereby directing the client in the right direction. The broker is accountable for reading the crucial details and simplifying them for you. The role of the broker in the claim process is to advise the client on reporting procedures and advocate for the client if the claim handling does not meet the client’s expectations. While a broker is unable to become a claims adjuster, it is practical for them to look into the situation and introduce convincing alternatives to the insurance company.

In Need of A Trustworthy Broker?

If you are in search of an insurance broker in Perth that you can rely on, then Matrix Insurance is the team you have been looking for! Our primary business focus is arranging and consulting business insurance for small and medium-sized enterprises. Since we have access to more than 120 different underwriters and insurers, we can find the best coverage at a low price. We are passionate about insurance and dedicated to making the entire insurance procedure a pleasant experience for all the parties involved.

How to Modify Your Insurance Requirements as Your Company Develops?
How to Modify Your Insurance Requirements as Your Company Develops?

Posted on October 20, 2022 | by | Posted in Insurance

There is no doubt that your company has developed and evolved since its beginning when your small business ambitions have finally become a reality. You have invested so much of your time, effort, and own money to make your business successful, so it’s only fitting that you would do anything and everything to keep it safe. Remember that as your company grows, requirements adjust, and what you may have considered reasonable in the early stages may no longer be appropriate for the current state of your business. As companies expand and change, their commercial insurance requirements and risk management considerations also start to change. As a result of expansion, property modifications, staff adjustments, or industry-specific changes, businesses may be compelled to amend their business insurance coverage throughout the years for a number of reasons.

In this article, we will be going over how you can modify your insurance requirements as your company develops to ensure that your business will be protected from any threats or future risks.

How to adapt your insurance needs as your business grows?

Change and expansion are inevitable – in both biological organisms and in the brutal world of business. Thus, it would be best to prepare yourself and your company for this inevitable transformation to achieve success. As your business expands, so do the associated dangers. Your best bet is to have a plan or system in place to adjust to these changes. Therefore, it is essential to update your business’s insurance policy on a regular basis to ensure that it is protected against the risks it faces. Consider that the policies you already possess may no longer meet your evolving demands.

  1. Adjusting your insurance according to the size of your business

As a small business owner, you will frequently encounter new chances during the course of your business journey. For instance, you may have begun as a small family-owned restaurant and are now expanding into event catering or setting up new branches across the city. These new changes are exciting and beneficial to your business, but they can also pose problems if you do not have the proper insurance coverage. Now is the time to check your current business insurance coverage to ensure that you are protected from all of your business procedures and that your coverage types are still suitable for today’s standards.

Once your business generates a respectable amount of income, you should consider purchasing additional insurance to protect your hard work from unforeseen disasters. In the highly competitive world of small business, even a minor setback can throw you into a spiral. The majority of small business owners believe they are prepared for life’s challenges by insuring their property, employees, and equipment. Business Interruption Insurance covers your loss in gross profits caused by the unforeseen interruption of a business due to an insured occurrence, helps pay ongoing costs, and safeguards profit margins until the company is back on its feet and operating at its pre-interruption profit level.

  1. Getting ready for any scenario within your business

It will always be a good idea to be prepared for the worst-case scenario, especially if it happens within your business. When you open your doors to patrons, someone may get wounded or cause an accident on your property sooner or later. Visit enough client offices, and you will eventually break or bump into something. Work with enough contractors and vendors; someone may take something you say the wrong way. Regardless of your industry, these are key business risks that you should always be on the lookout for. The majority of business owners acquire General Liability Insurance to manage these risks. 

  1. Protecting your investments and equipment

As your business grows, your inventory, investments, equipment, and tools may also increase. It can be comparable to moving into a brand new home. Initially, you will have all the needed office furniture and equipment, as well as ample room. However, over time, you will inevitably fill your office with additional furniture, tools, and other items. When your firm expands, you will realise that you have invested a substantial amount of money in the physical property if you take a step back in this situation. Therefore, it would be pretty expensive to repair all the pieces and equipment – for instance, if a fire destroyed your residence. We recommend that you must engage in Commercial Property Insurance before encountering such a crisis, which will safeguard both the building and the equipment.

  1. Allowing yourself to legally expand your workforce

Two hands are better than one, as the old saying goes. Depending on your business’s unique circumstances, you may need to consider purchasing an insurance policy for Employment Practises Liability. Suppose you currently operate as a single proprietor and wish to add people in order to develop an effective workforce. In that case, this policy will help make you legally eligible to hire the people you need. As an employer, this reduces the risk and potential cost of claims brought against you by employees alleging discrimination, unjust termination, or sexual or workplace harassment.

  1. Being able to cover for any damages towards your employees

Now that your business is expanding and you are legally eligible to acquire employees, you have begun hiring team members to further your business’s potential. Since you are going to be directly accountable for any workplace accidents or injuries, you must modify your insurance coverage accordingly. Therefore, it would be prudent to obtain Workers’ Compensation Insurance in order to protect oneself from any future unwelcome or unexpected claims. You are legally accountable for medical expenses and lost income when an employee is hurt on the job. Workers’ compensation pays for these expenses.

Additionally, it provides some legal protection against litigation. When your coverage covers occupational injuries, an employee’s ability to sue you is diminished. Therefore, it’s a win-win for you and your employees. Their damages are covered, and your danger of being sued is reduced.

Bottom line

If you run a business, you should discuss your insurance needs in depth with a seasoned insurance agent or broker, and be entirely honest about the current state of your company, so that the coverage you purchase will be beneficial to the growth and protection of your business. In order to be protected from financial loss in the event of unforeseen events, it is crucial to have the proper insurance in place. Ensure you understand what is and is not covered, and check your coverage as your business evolves. Once you have determined the coverage or policies your business requires, you may compare quotes from several insurance providers to find the most outstanding value.

If you are in search of a trustworthy insurance broker in Perth that you can discuss the current state of your insurance policy with, Matrix Insurance Group is the team that you need to get in contact with! Matrix Insurance Group is a national insurance brokerage that is wholly owned and operated in Australia. Our primary business focus is arranging and consulting business insurance for small and medium-sized enterprises. Since we have access to more than 120 different underwriters and insurers, we can find the best coverage at a low price. We have a passion for insurance and are dedicated to making the entire insurance procedure as smooth as possible!

Here’s What You Need to Know About Luxury Cars 
Here’s What You Need to Know About Luxury Cars 

Posted on May 26, 2022 | by | Posted in Insurance

Luxury cars symbolise decades of history and craftsmanship, which sets them apart from other vehicles. Collectors and enthusiasts alike have been amassing collections of luxury automobiles from the early twentieth century to the present day. The cult following of various brands and models has distinguished luxury automobiles from regular everyday vehicles since their conception. Are you interested in owning one for yourself? We are here to help you make that decision! In this article, we will be presenting what you need to know about luxury cars!

Where did it all begin?

The history of luxury automobiles is concise yet has a lot of memorable moments. About one hundred years ago, the first modern luxury automobiles were produced. Henry Ford was the inventor of the very first high-end automobile. He made a notable transition from manufacturing horse-drawn buggies to manufacturing horseless carriages, or cars, as they are more commonly known today in modern language. The Ford Motor Company quickly became one of the most recognisable names in the history of the automobile industry.

What makes luxury cars different?

The pricing is the most apparent and first distinction between luxury cars and other vehicles that people observe. While you may be able to purchase a midsize car base model for less than $20,000 or an SUV for less than $40,000, a luxury vehicle can cost well over $100,000. Moreover, premium vehicles are typically constructed with superior materials. Luxury automobiles typically employ wood trim in place of plastic covers for elements such as cup holders and storage bins. In addition, many luxury vehicles feature electrical components that ordinary vehicles lack. These additional high-quality extra features are the main differentiator between your Lamborghinis and your Corollas. 

What is the impact of luxury cars?

Luxury automobiles are a hallmark in pop culture. They feature in films and on television to illustrate the luxurious lifestyles of the characters. The legendary DeLorean DMC-12 from the 1985 film “Back to the Future” is a prime example. The DMC – 12 may resemble a chrome-plated Monster at first glance. However, it is the offspring of John DeLorean, and in addition to its mad scientist look, it features a 130-hp, 2.9-litre V-6 engine. However, its ability to travel through time, which in the 1980s was considered a piece of futuristic technology, makes it an icon. Automobile manufacturers frequently donate vehicles to the production crew for free advertising within the project.

Are they worth their high price point?

Despite their hefty price tags, luxury automobiles are well worth the additional safety, comfort, and speed they offer. Considering maintenance and fuel costs, a premium vehicle could save you money in the long run. Obviously, that depends on how frequently you drive or use your cars. If you primarily use your vehicle to commute to work and run errands, a premium car may not be worthwhile due to its higher cost per mile. Suppose, however, you need your vehicle to be as secure as possible, or you need to move from one location to another as quickly and efficiently as possible. It makes sense to own a luxury vehicle due to the numerous safety features not accessible on regular cars.

How do I know if a luxury car is right for me?

Several considerations will assist you in determining if a luxury vehicle is ideal for you when you are considering purchasing one. Consider how frequently you use your car and for what purposes. If the majority of your driving is on city streets or highways, a luxury vehicle may not be worth the greater fuel consumption and insurance prices. Suppose, however, that you frequently drive for business or pleasure. In this instance, it may be worthwhile to invest in a larger car with additional features that enhance the driving experience and make the daily journey more comfortable. 

What features make luxury cars distinct? 

The majority of automobiles on the market today are designed to make driving more manageable and convenient. The variety of amenities might vary significantly between models and manufacturers, but some features are standard in luxury vehicles. Current supercars typically include scissor doors or inward-opening doors. This is reflected in the Lamborghini Aventador’s unique design. The doors open upward to eliminate the need for additional space in the parking lot and allow the driver to see out the door while reversing, as these automobiles typically have inadequate rearview capabilities. The Aventador is equipped with miniature explosives in the door hinges to release the doors in an accident in which the vehicle is inverted. This enables the driver to exit the car when the doors are otherwise impassable.

Are luxury cars hard to maintain?

As a result of their numerous premium amenities, luxury vehicles may be more expensive to maintain than standard vehicles. This may involve replacing high-quality tyres, fuel pumps, airflow sensors, and many more components that need replacing from time to time. If you drive a luxury vehicle for an extended period, it may be more expensive to replace it than if you had bought a new car after two years. It is suggested that you invest in high-quality tyres from well-known manufacturers so that your vehicle operates optimally and lasts longer. You should also set aside funds for unexpected expenses because luxury vehicles are constructed to higher standards, and maintenance might be costly as you can expect. Interested in getting insurance? Feel free to visit Matrix Insurance if you need luxury car insurance for your luxury vehicle needs!

7 Profit-Enhancing Strategies for Automobile Dealerships
7 Profit-Enhancing Strategies for Automobile Dealerships

Posted on May 26, 2022 | by | Posted in Insurance

At first glance, the business of car dealerships undoubtedly appears extremely lucrative. Car keys are exchanged between owners and customers every day, and expensive vehicles are driven off dealerships just as much. However, those highly involved with the retail automotive industry are aware that dealership profitability in the current economic context is precarious. That’s where we come in! In this article, we will be going over our profit-enhancing strategies for automobile dealerships!

  1. Work within your locality

Many aspects of service marketing are now within the hands of manufacturers and not the car owners. Because this business technique assures brand uniformity across the country, it makes sense for the factories to utilise this. On the other hand, a one-size-fits-all approach isn’t always feasible at the local level, as you’ve probably experienced for yourself. You can use text or call them, or use social media direct messaging to provide messages to specific service customers in today’s ultra-connected digital world. 

With the correct technologies and a thorough grasp of the ownership cycle, you’ll be better positioned to win the next service call. Your dealership’s ability to compete with surrounding franchises and aftermarket service centres depends on tailoring your service marketing to your customers’ vehicle ownership lifecycles, from new owners to pre-owned owners to value-based owners.

  1. Improve your management

The profitability of a dealership and the calibre of its employees go hand in hand. When you have the right team in place, your dealership reaps the benefits of top workers who excel at sales and customer service-oriented technicians. In contrast, when a high employee turnover rate plagues your dealership, you suffer ongoing costs associated with acquiring new employees. 

Develop a strategy that will allow you to recruit and retain exceptional and top tier people. Incorporate a systematic recruiting procedure that attracts good employees. Execute rigorous new-hire training that encourages employee retention, and seek to instil a dealership culture that recognises and rewards successful team members who will benefit your business in the long run.

  1. Make sure all your cars are clean

Rising customer demands make vehicle refurbishment a must in car dealerships. Improving the appearance of your automobiles boosts your chances of selling one. You wouldn’t purchase a piece of furniture with stains all over it and crumbs between the cushions, so why should a used automobile be any different? Ensure that you hire someone who can make all your vehicles eye-catching. You will never go wrong if each car is entirely retail-ready!

  1. Utilising the internet 

In recent years, the automobile dealership experience has experienced a fundamental shift, with potential car-buyers increasingly substituting online automobile evaluations and vehicle history data for dealership visits and test drives. People spend a reasonable amount of time on the Internet to research before making a vehicle purchase. There are currently a variety of innovative systems available to dealers, all of which are geared to assist purchasers in researching inventory online and completing the majority of the transaction from the convenience of their desktop or mobile device.

Since you can no longer rely on automobile buyers physically visiting dealerships in their leisure time, you must engage them on their preferred platform. Enhance the online car-buying experience on your dealership’s website and communicate with potential clients. You can also utilise social media to answer inquiries and address customer issues before they become negative reviews. Achieving an impactful online presence will positively affect the profitability of your dealership.

  1. Find other avenues for revenue

Consistent revenue will always be the top priority for every enterprise. Adapting and discovering alternative revenue streams can help you sustain your dealership. With an eye toward the future, auto parts retailers may want to consider selling auto parts online as a profitable way to generate sales from both existing and new consumers. You can use your company’s website to construct an effective order-buy system that you can offer to your current clientele. Start by concentrating on high-turnover items and best-sellers. As you experiment with parts supply and various marketing communications techniques, use your parts store as a catapult to advertise your dealership’s vehicle inventory and service facility to potential customers.

  1. Offer online F&I services

Dealerships are empowered to interact and cooperate with clients before they even approach the dealership by allowing them to begin the F&I process online. The first step is to offer a wide range of cutting-edge F&I goods that match the needs of your consumers. The openness of the online experience allows consumers to access relevant information and modern digital tools such as films, infographics, and references to grasp the value of F&I products better.

Customers must be educated about the condition and worth of F&I items before making an informed decision. You can’t control your consumers’ access to knowledge in F&I, but you may help them investigate and fulfil their demands. Online F&I processes must be instructive and instructional so that when customers get to the dealership, they are ready to work with a sales consultant.

  1. Invest in maintenance 

The most important part of owning a car dealership is making sure all your vehicles are ready to hit the asphalt as soon as they’re purchased. In this day and age, our modern cars are often filled with complex pieces of technology. About 10,000 parts and components are needed to manufacture today. Besides the hardware, it also contains many features that revolve around its software. A good car should work perfectly in any weather and be reliable any day of the week. To guarantee your customer a fully functioning automobile, you must invest in maintenance. 

Are you interested in getting your car insured as well? Feel free to contact Matrix Insurance to have access to the best motor trade insurance brokers who will be glad to assist you in getting the best insurance package.

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