March 20, 2018

Business, Insurance, News

Research reveals rural businesses using a broker to create tailored insurance cover are much better protected, but what factors are putting some firms off using a broker?

A survey of small business owners in regional and rural NSW, Victoria and Queensland by CGU Insurance found that those who dealt with an insurance adviser were more extensively covered and better protected in the event of incidents like fire or theft.

The research showed businesses that used an adviser had on average 3.4 business insurance types, compared to an average 2.9 insurance types for those who bought their insurance directly.

The research also revealed a damning amount of underinsurance for those not using a broker, with regional businesses half as likely to have business interruption insurance if they didnt use an insurance adviser. 17 per cent of those that bought their insurance directly had business interruption cover, against 34 per cent of those that used an insurance adviser.

Factor in that more that 57% of the small businesses surveyed reporting some loss at their business in the past year, with machinery/equipment breakdown the most common, then the vital role of the broker is even more obvious.
“Small business owners need certainty in their insurance cover and cant leave anything to chance,” said Andrew Beer, CGU national manager, sales and service.

“Using an insurance adviser means you will get tailored advice that is going to provide the best outcome for your business.”

Beer said some businesses didnt use an insurance adviser because they believed they were either too small to require one or that the adviser would be too expensive.

“Both assumptions are generally incorrect,” he said. “Insurance advisers have experience in your type of business and can offer expert advice on the right package of covers for you they will get you the covers you need, and make sure you are not paying for covers you dont require.”

“They wont necessarily cost you more either and can save you money and even your business in the long run,” he added.
Source: Insurance Business Online

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