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.