Think HBR

It’s advice that matters, not price

Dallas Booth
National Insurance Brokers Association

We all accept that things can and do go wrong from time to time, with everything from major natural disasters ravaging entire communities, to little incidents that affect only one person or their family, such as a prang in the family car. To protect ourselves, we insure ourselves, our houses, cars, other possessions, and our businesses. And when things do go wrong, the insurance process responds.
Despite this, insurance can be a grudge purchase. For the most part, people pay their insurance premium each year and, fortunately, that is all that happens. They don’t have a loss, and they don’t have to make a claim. But if you do have a claim, then having the right insurance advice and cover, particularly with regard to business insurance, can save your very livelihood.
Business risks are great and varied and include:
· Loss of property
· Workplace injury and disease risks (workers compensation)
· Public liability
· In many cases, professional indemnity
· Management liability to protect your company
· Directors and Officers Liability to protect the company directors
· Cyber risks – to protect your computers, and the information on the computers
· Business interruption
Insurance can be a very complex product and most business owners don’t have sufficient understanding of their unique risks and exposures to be certain that they are adequately covered if worst comes to worst. And if they’re not, they can suffer losses which can cripple them financially, and destroy a lifetime’s hard work.
That is why every business owner should use an insurance broker. A good broker will help you understand the risks you face, and advise on how best to manage those risks; provide you with tailored coverage for your business’ unique risks at the best price; and in the event of a claim, go in to bat on your behalf to negotiate a settlement.
It’s extremely easy to jump online to buy your business insurance directly, and hard to resist the temptation to base your decision on the lowest price available. But that can often mean you lack vital cover, potentially leading to financial heartache in the event of a claim. Insurance is like most other areas of business, you get what you pay for.
Insurance brokers are there to help and advise you. They understand all sorts of businesses, and will make sure you are fully protected if something does go wrong. That should be on the top of every business owner’s agenda.
The not-for-profit National Insurance Brokers Association operates a free broker finder service to help business owners contact an insurance broker in their local area. For further information visit or telephone 1300 53 10 73.
Dallas Booth2 Dallas Booth
is Chief Executive Officer of the not-for profit National Insurance Brokers Association (NIBA). NIBA is the peak body for the insurance broking profession in Australia, representing an estimated 90% of brokers.