Business insurance cover should never be a set-and-forget exercise
Transport operators can really benefit from working with an insurer who understands the industry and their specific business’s risks. So, if your relationship with your broker is limited, rethink before you renew your insurance cover.
Operations carry inherent risks: vehicles are responsible for 43 per cent of workplace injuries, according to the latest Safe Work Australia Key Work Health and Safety Statistics, Australia 2020 report.
Where depots and storage are involved property risks such as those constructed with expanded polystyrene (EPS) can be a significant factor in how your risks are viewed by a potential insurer.
A vital role your broker should play is explaining to the insurer how you are managing and containing these risks.
A number of valuable services your insurance broker may deliver to support your business are
- site visits – a broker applying a real interest in your business and how it operates, and this includes conducting site visits where they visit and inspect (walk around) your premises
- involving the prospective insurer – it’s also important that the insurer sees how a prospective client is managing their risk exposures on the ground and in real life
- providing risk and insurance options and recommendations – your broker should check for the best cover for your business and provide alternative solutions and possibly different insurers, should they think it will benefit you
- run-up time – working with your broker at least 3 months before your renewal is due is critical in order to update relevant information and shop the market
- proactivity about potential problems – you broker should ask, and you should disclose, any events that could give rise to a claim and checking any emerging risks, or risk gaps to cover. It’s always better to have this information upfront, and to consider options for risk protections before it’s too late.
An example of how important the broker’s understanding of your business can be is the case where the prospective insurer sent an assessor to a transport business without a broker also being present: the business’s premiums would have doubled.
When the broker accompanied the surveyor and pointed out the risk management protocols in place the premium rate remained the same.
Being there when it counts: at claims time
Your broker is your claims advocate helping you achieve optimal outcome of settlement or entitlement.
Most insurers have a pre-approved processes in place for getting your vehicle repaired immediately, instead of waiting for an assessor’s report. This can save a week or so in getting your vehicle back in service.
Read Roz Shaw on meeting risk during the new normal, here
The real skill of the broker is knowing when to insert themselves into the process to speed things up for you.
Acting as an advocate when the process doesn’t work as it should is where the true value comes.
To do this the broker needs to have good relationships with insurer claims teams and to know how to change outcomes when the claim isn’t progressing as it should.
Getting full value from your insurance and broker
How does your broker service rate on these five key factors? Take the opportunity to revisit your needs and ensure you’re protected and by strong broker support and industry expertise.
To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation.
You should consider whether the advice is appropriate for you and review any relevant product disclosure statement and policy wording before taking out an insurance policy.
Roz Shaw became Gallagher’s national head of transportafter a 30-year career in running her family’s transport business.