Industry research shows that a large proportion of Australian businesses, including SMEs, use an insurance broker to help ascertain they have the right insurance cover. At its heart, insurance broking is a relationship business and brokers are in a strong position to build deep relationships that add value to their clients' business.

To get optimal value out of your broker you could start by asking them to analyse your current and potential future risks and assess your existing insurance cover accordingly — this is a no obligation service Gallagher offers both clients and those reconsidering their business insurance arrangements.

Brokers understand the insurance market and can provide advice on how changes to market conditions could affect your business coverage. For example, we are currently seeing premium and rate movement across various products and reduced underwriting appetite from insurers that may result in reduced coverage for some types of risks.

Business owners need to balance the need for assurance with the cost of cover, and most could probably benefit from help with managing premiums and presenting your risks in a positive light to insurance underwriters.

Get an insurance professional's view of your business exposures

A broker will peruse your policies to identify gaps in your cover that might need to be addressed and also any exclusions hidden in the terms that could possibly be renegotiated to provide improved coverage. This could deliver you better value and unlock potential savings for your business.

Some forms of insurance are mandatory for Australian businesses, including workers' compensation, public liability and third-party personal injury insurance, and a broker can help ensure that you have the cover required to comply with regulatory requirements.

To tap into the benefits of broker expertise it's a good idea to ask them to run a risk review on your business. Depending on your industry and sector they may want to conduct a site inspection and in some cases they might recommend outsourcing this to an independent risk expert.

This process can assist with identifying gaps in your cover and alerting you to risks in your operations that you may have overlooked.

You can also expect them to ask questions about the measures that you're taking to address operational risks and whether these can be made more effective. Ramping up risk management can help with obtaining the scope of insurance cover you need and may be reflected in the premium cost.

If you have made changes to your business that aren't reflected in your policy (extending your operations to a different location or adopting new practices such as a delivery service, for example) they will also alert you to new risks in your operations and they may want to discuss your plans so they understand business exposures that may emerge down the track.

Support during the claims process can drive a positive outcome

Having your broker on your side during the claims process can provide invaluable support. They have the advantage of understanding the legal technicalities of the policy you're claiming on, and how the terms might be interpreted by the insurer.

As a brokerage Gallagher stands by our clients during claims, overseeing the process and intervening at the critical point if the insurer raises questions about eligibility, the value of the loss or other issues raised by the circumstances surrounding the claim, always aiming for a timely outcome. We also stay in communication with our claiming clients and keep them updated on the claim's progress.

The value of broker involvement in obtaining insurance cover

Involving an insurance broker who understands your industry sector and the risks that are particular to your business can help you to proactively respond to insurer risk management concerns and also potentially provide access to more comprehensive cover on more competitive terms. We're here to help. Talk to one of our insurance experts.

Disclaimer

Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

Gallagher publications may contain links to non-Gallagher websites that are created and controlled by other organisations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by Gallagher, as we have no responsibility for information referenced in material owned and controlled by other parties. Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.

Insurance brokerage and related services to be provided by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920). Australian Financial Services License (AFSL) No. 238312