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Importance of Review

The importance of an Insurance review with an EXPERT

by Sue Sparrow

 

A number of people when contacted by their broker to organise an insurance review or given the opportunity of a complimentary review have the misconception that they are going to be “sold” more insurance and end up having to pay higher premiums.

 

Even more people will tell you they have insurance – they are covered. However, when questioned as to the type of cover, what benefits and the levels of cover they have in place, they are unable to give an answer.

 

When looking at your insurance cover, it is important to ask yourself certain questions. Here are some examples:

  • •   In the event of a claim, will the correct person or entity receive the payment?
  • •   Do you know that since your policy was initially put in place, if there are now better and more cost-effective policies available with more improved benefits that will better match your needs?
  • •   Are you certain as to what benefits you will be paid in the event of a claim?
  • •   Are there exclusions or increased premiums on the policy, which could and should be looked at?
  • •   Does this policy cover my business's specific needs and has it been tailored for my business?
  • •   Have I purchased any new equipment; changed staff; moved premises; added new treatments to my menu and not informed my broker?
  • •   Are these new treatments covered under my existing policy?
  • •   Does my insurance broker understand my business requirements?


With changes in personal circumstances or in business structures it is important to know that if the unforeseen event occurred, your insurance policy will meet your individual and business needs. Similarly, if you are now in a better financial position is there additional areas of cover such as Key Man Protection that are important for the ongoing success of your business that you should now re-evaluate.

An insurance broker's role is not to “sell” you insurance. The insurance broker's role is to help you get the best possible insurance cover available to meet your business's specific needs and to ensure you are given accurate and up-to-date advice, which will help you make informed decisions.

Like your accountant and lawyer, your insurance broker is a professional. They should not just “sell” cover and then forget about you, they should protect your best interests. Additionally, they should not take the “hit and miss” approach of helping you put a policy in place without you understanding the reason and purpose of the policy.

If appropriate, they should also connect with your accountant and lawyer to ensure they also understand the purpose of your policy. Insurance is about relationships. Your insurance broker should be your first point of contact in the event of an incident to answer any questions and provide assistance with claims.

We at The Sparrow Group take our client care seriously and consider it our obligation to ensure we are offering our clients not only the best possible cover at the best possible price, but also we aim to ensure the policy we recommend perfectly fits their needs.

Here are just some examples of the review results conducted by The Sparrow Group*:

 

Example 1:

Chris WA. Chris called The Sparrow Group for a review as she was paying very high premiums and she wasn't obtaining the information from her broker to assist her in feeling comfortable with the insurance policy that was in place. Her current brokers were not proactive in providing her with information, or for that matter returning her calls. Chris wanted to know what she had covered under her existing policies; did she require further cover and was she paying too much?

 

After reviewing her policies, we confirmed the following:

As Chris's business had grown and she had additional areas to cover, another policy was added. While this was very diligent of her to make sure she was properly covered, the insurance broker, due to a lack of understanding of the beauty industry, had duplicated her policies. Also, there were existing policies in place that she no longer required due to the changes in her business.

These matter were immediately corrected and we sourced new policies that save her over $7,000 per year.

Example 2:

Joanne SA.Joanne called The Sparrow Group for a review of her policies, as she was concerned over the premium amount she was paying and she didn't feel her insurance broker understood her business requirements. As she had a mobile business that included an IPL machine she was concerned that it wasn't adequately covered under her insurance.

 

After reviewing Joanne's policies we confirmed the following:

There were areas of Joanne's policies that were doubled up and we were able to save her money. However, her mobile IPL and some of her other electronic equipment were far from adequately covered. In the event of a claim it would have cost Joanne up to $60,000 to replace her equipment. We were not able to offer savings to Joanne's premium. We were, however, able to give her peace of mind through a more comprehensive cover in the event of a claim.

Example 3:

Susan Qld.Susan called to see if The Sparrow Group could review her policies as she had been with an insurance broker for some time and she wasn't sure if she was covered for all her treatments under her existing policies.

 

After reviewing Susan's policies we confirmed the following:

Susan's policies were in disarray. She had policies that were not worth the paper they were written on as they were not adequately insured to cover her treatments or for any advice that she on her staff may be giving that may eventuate in a claim. She had a "motor vehicle and a household policy that she thought she was covered for that had been out of cover for five months.

We were able to work through all the paperwork with Susan and ensure that she and her business were adequately covered and she could now sleep at night.

With the beauty industry moving forward in leaps and bounds the need for an insurance group who has extensive experience in the beauty industry as well as the insurance industry is paramount. Our proven results guarantee peace of mind

The Sparrow Group provides you with reliable service that will take the pressure off you, giving you peace of mind and freeing you to concentrate on your business.

For an insurance review Contact us today!

 

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