Claims can be successful – it’s up to you

Ninety % of all insurance claims are a bureaucratic tick 'n flick process.  But they are bureaucratic. If you don't have all your documentation in order at claim time, there will be hold-ups.

Your claim becomes like grit in a cog – swept away to the bottom of the pile – so that the machine keeps ticking.

"I've seen some simple claims, that should have been done and dusted in a week drag on for months. Simply because the correct paperwork wasn’t lodged at claim time."

It’s simple

Claim time is the moment of truth. Where the value of a good broker shines. Work with them, and it will be just a painless exercised in being paid.

1. The moment something happens, contact your broker immediately. They are the experts in the whole process and your advocate.

2. Answer all their questions and provide them with the documentation they require. Typically:

a. Full details of what’s being claimed for

b. Initial purchase invoices if available, or proof of ownership.  Photos can be helpful.

c. Estimated replacement costs.

d. Any lodgement notices with relevant statutory authorities, e.g. Police or WorkCover reports.

e. Bank account details for prompt payment.

Providing it doesn't need an assessor; it should all be straight forward and paid within two weeks.

Where it can go wrong #1

·       under insurance to save money

Insurance is an expense, with nothing to show for it except the promise that if things go wrong, the money will be there to put things right.

It's tempting to cut costs and self-insure. To carry that liability on your balance sheet and cover the cost yourself if things go wrong.

But it is always more expensive than you realise.

At the exit interview after a multimillion-dollar fire, the owner said

"whatever number you pick add 50%. There is always more stuff you accumulated, and replacement cost are always more than you want."

Where it can go wrong #2

·       not telling your broker everything

Quite simply, the insurance company can deny your claim if there are any material factors that they were unaware of.

And unless you are an insurance expert, you will not know what they deem to be necessary.

Tell you, broker, everything about your business and how it operates. Leave it up to them to decide what’s important.

And if there is something you want to hide, tell them anyway. There may well be a smart way around it. Or not.

But it is better than paying money for nothing. Which is what you will have if you have left things out.

Choose your broker wisely

They are an advisor focussed on managing the risk in your business: eliminating where possible, managing others risks and mitigating everything through the right insurance cover.

They are the GPs of business insurance and will access experts when needed. So, your risk is fully identified and managed.

They are your advocates when things go wrong.

Your first and most important tip-off is how much time they spend with you right at the beginning.

Does your broker truly want to understand your business? Or is it just another transaction.