Are your business insurance needs being met?

Does your strata building have the right coverage?
Posted on February 2, 2016 in Business, Retail

For entrepreneurs,shopping for business insurance is like walking a tightrope. You have to find the right balance between cost and coverage. Unfortunately, many business owners lean too far towards prioritising cost – and unknowingly end up with inadequate coverage.

According to the National Insurance Brokers Association (NIBA), buying insurance directly instead of getting advice from an insurance broker can be quite risky – especially when it comes to residential and commercial strata insurance.

The complexities of strata insurance

Many business owners make the mistake of purchasing a cheaper policy, leaving them vulnerable to significant losses.

Insurance policies are often quite complicated, and strata insurance is no exception. In fact, expert advice is even more crucial. Many business owners make the mistake of purchasing a cheaper policy, leaving them vulnerable to significant losses. It is important to understand that, when it comes to strata insurance, many factors will influence exactly what your policy must cover.

"Firstly every strata building is different, and will have different risks and challenges which need to be taken into account when thinking about insurance; secondly, strata insurance policies all vary, and care needs to be taken to ensure the policy matches the needs of the strata block; and thirdly and most importantly, the amount of cover (the sum insured) needs to be adequate, or the strata owners will be exposed if a major loss occurs," said Dallas Booth, CEO of the NIBA, in a press release last April.

Why a broker is right for you

There are a number of reasons why it pays to go through an insurance broker rather than buying a policy directly from an insurer. As part of the insurance broker code of practice, brokers agree to act in their clients' best interests. Their role is to advise prospective buyers on the most appropriate personal or business insurance for the buyer's situation and needs.

Going through an insurance broker can also be a money-saving move for consumers. The Insurance Council of Australia notes that many brokers have access to exclusive policy packages that are unavailable to private buyers. Brokers can also help explain policy details to consumers, protecting them from costly misunderstandings. 

You can learn more about the benefits of seeking an insurance broker's services in this video from NIBA TV.

Strata Insurance Explained from NIBATV on Vimeo.

Do you want to make sure that you have the right business insurance for your needs? Contact an MGA insurance broker today for help and advice with getting the coverage you need.