Business Policies are nothing like Domestic

When you purchase a Domestic policy such as a Home policy it already includes most sections, such as:- Fire & Perils, Burglary, Glass breakage, Fusion, Liability, Money, Spoilage etc.,



BUT when your shopping for a Commercial or Business policy you must purchase each section required. This means you need to know your stuff, you have to be attentive or else!
 The following are CRITICAL POLICY ISSUES:-

 LEGAL ENTITY
The correct LEGAL entity is vital otherwise you may have exposures under the policy divisions.

USE/OPERATIONS
The insurer offers cover based on the "Common Knowledge" of the risk. If there non standard hazard/s not disclosed it can affect claims.

POLICY DIVISIONS
We define this into 2 areas. Part a] = Your Property  Part b] = Your Liability to others.

LEVEL OF COVER
Can be broken into 3 levels of cover:-  GOLD, SILVER and BRONZE.

In many cases you can select the level of cover for a] Your Property and b] Your Liability to others.

SECTIONS OF COVER

Wow!  so many (we provided an example below).

ITEM INSURED
Clarify the item to be insured falls within the correct section of cover. DO NOT ASSUME extras or accessories are covered.

CLAIMS
It must be sudden & unforeseen.  Once the "cause" not the damage has been determined we can establish what section of the policy is applicable.  

INDEMNITY TYPE
This means the "Basis of Settlement".  Market, Agreed and Replacement.

"Market Value" is the most common. It is also known as "current value" which is the principle of "Indemnity".

.... Good, Bad, Right or Wrong ....
.... these are the rules which you need to be aware of otherwise you will suffer undue losses.

RISK MANAGEMENT 4 points

1.IDENTIFY KEY ASSETS TO PROTECT

q  Static Assets; items, people & activities

q  Mobile Assets; items, people & activities

q  Consequential Loss of Income/Costs

q  Liabilities from the above Assets

2. IDENTIFY

q  What do you do (anything out of the Normal)

q  What can go wrong – whilst allowing for present and future exposures

q  What is it going to cost – Insurance

versus

q  What can you do about it.

3. Cross reference these issues against your current covers

4. Now talk to us, Your Professional Broker

article presented by 

Anastasia Stevenson

anastasia@centralins.com.au 

Account Executive  - Green Team

Central Insurance Brokers http://www.centralins.com.au/

Ph: 93688-901  Mob: 0419 958 508

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Crazy Storms are you Protected?

Cynthia Yap is an experienced Insurance Broker who has been with Central Insurance Brokers for the past decade. She talks about using insurance to protect your assets.

Different parts of Australia have encountered some unexpected weather during the first month of autumn.

I am talking about the severe hail storms in Melbourne and Western Australia and flash flooding in different parts of the Eastern States, and winter hasn’t even arrived! What about the flooding caused by record-breaking rainfalls in Queensland?

Image via WikipediaMost scientists will tell you there is evidence that our climate is changing. Even though there is much debate on the causes of climate change, the most intense argument is over the human impact on this matter. To some, humans are the sole cause of global warming, while others don’t think we are responsible at all.

Observed changes in Australia include increased temperatures, declining rainfall in certain areas (causing drought), rising sea levels, and extreme weather occurring more frequently.

Apart from actively taking steps to help improve the environment, don’t forget to protect yourself and your assets from any disaster.

You can insure your personal assets like your house, contents and motor vehicle against damage caused by natural disasters, fire, theft and accidents. Cover for accidental damage and flood need to be nominated, as they are usually not automatically included in policies.

For business owners, depending on whether you are a service provider, retailer or manufacturer, check to see if you have any of the below summarised covers:

·         Fire – damage to a building, stock or contents caused by fire.

·         Theft – stock or contents stolen from your business premises.

·         Business Interruption – this covers the loss of income you would have made in the period your business was closed (as a result of a disaster). It covers costs involved in moving to and operating from a temporary location, and fixed expenses including wages, utilities and rent. This section may be the most valuable cover for your business, because a business that is not operating cannot produce income.

·         Public Liability – if you cause injury to third party or damage to third party property arising from carrying out your business.

·         General Property – covers your business tools and equipment during transit and on-site, damaged as a result of fire, collision or overturning of the vehicle. Theft is also covered if the tools are stolen from a locked vehicle or by forced entry.

·         Glass – internal or external glass on the premises, including windows, ceramic basins, mirrors and neon signs.

·         Money – covers loss or damage of money from the premises during and after business hours, at your residence, in a safe and during transit.

·         Machinery Breakdown – covers plant, machinery and mechanical equipment in the event of a sudden and unforseen event.

To avoid disappointment when lodging a claim, be sure to read your policy wording and understand exactly what you are and are not insured for. Don’t be afraid to ask questions about your policy. At renewal time, make sure you check the sum insured of your assets, so you are not underinsured.

As an insurance broker, it’s always heartbreaking to witness a limited claim, due to a restrictive or inadequate policy, just to save a few dollars. What’s even worse than underinsurance is if you don’t even have a cover in place to begin with.

Remember! Insurance is like a parachute. The only opportunity to test it is when you have to use it, at which time, one is more concerned with the quality rather than the price.

For obligation free advice contact

Cindy at Central Insurance Brokers Perth WA

T: 08 93688999

W: http://www.centralins.com.au/

Central Insurance Brokers are leading Independent Brokers in Perth W.A.

Est., 1980