Special Guide For General, Business And Life Insurance Buyers Seven Costly Insurance Traps & How To Published by Avoid Them PTY LTD
The proof in the pudding is when you have a claim, and that s where our point of difference is: having someone in your corner, who s going to help you when you do have a claim. That s us, Geelong Insurance Brokers. We re there, we ll go into bat for our clients, and help them get claims paid. Don Shields A.N.Z.I.I.F (Assoc), CIP Geelong Insurance Brokers Managing Director 2
Introduction There is an old saying, You don t know what you don t know. Insurance can be a complex minefield for the inexperienced, and unless you deal with insurance daily, you are unlikely to know all the trips and traps. At Geelong Insurance Brokers, that is what we do! We have produced this guide to help guide and educate you to make the best decision, the decision that is right for you. We hope then once you see what s involved, and how an expert can really make a difference in getting that decision right... you ll want to contact us and let us put our insurance expertise to work for you. (To help you do that, you can find out more about us at the end of this special guide, along with more about what our clients say and a special no-cost offer). So let s get started, and discover the seven costly insurance traps, and how to avoid them... 3
1. Not Seeking Advice Why risk a do-it-yourself insurance assessment? Seeking professional advice from an insurance broker provides peace of mind. A broker will ensure your insurance program covers all bases both in terms of types and levels of cover. Subtle differences in insurance wordings can lead to very different outcomes in the event of a claim. For example, Zurich s business pack and ISR policies offer flood cover to the full limit of sum insured. Whereas some insurers impose sub-limits for this peril, capping the amount they will pay in the event of a flood claim. Say the sub-limit is $500,000, then that s the maximum they ll pay for a flood claim, irrespective of the damage bill. A good insurance broker like us doesn t charge for time in providing this professional advice. That s right! The only time you will pay a fee is when you take out an insurance policy, which is usually once a year. notes 4
2. Falling foul of exclusion Items you might reasonably expect to be covered may in fact be excluded. For example, new for old contents insurance policies provide full current replacement costs for stolen or damaged items. But consumer website Insurance Watch warns that some policies will not replace new for old if the item is more than 10 years old. Also, some insurers don t replace soft furnishings, such as curtains, or impose a very low replacement limit. And contents such as jewellery, art and antiques may be excluded unless you specially request their inclusion, which may bump up your premium. Some insurers will even require the valuables to be insured under a separate policy. Valuables likely to travel with you, such as a wedding or engagement ring, cameras and laptops, may not be covered away from the home if they re not listed and valued on your policy. Solution: Read your policy carefully to identify exclusions, particularly when renewing, when new terms and conditions may apply. Ask your broker to spell out the exclusions before you take out or renew your policy. They might seem acceptable now, but what about when you come to claim? Ask what alternatives are available to you. notes 5
3. Inadequate Sums Insured For some, under-insuring is a way of keeping premiums down; for others it s a case of near enough is good enough. Either way, it s asking for trouble. Most insurers pay up to the sum insured, so if a $200,000 house has been insured for $100,000, the insurer will only pay $100,000 if the house is destroyed. However, your insurer may disqualify part of your claim even if the claim is for less than the full sum insured. For example, if you have insurance for $60,000 but the replacement cost of your contents is really $100,000, a claim for $10,000 could be scaled down to $6,000 by the insurer. Solution: There are better ways to reduce premiums. You can save money on your home insurance by selecting a higher excess the part of the claim you must pay or by insuring home and contents as a combined policy with the same insurer. Also, many insurers offer lower premiums for improved security measures. notes 6
4. Not Disclosing Material Facts Before entering into an insurance contract, you are required by law to advise the underwriter about any facts that may be considered relevant to their acceptance of your policy risk. This disclosure requirement also applies on renewal. If you do not comply, your insurer may cancel your policy and refuse to pay or only part-pay a claim. Material events that have occurred during the period of insurance can range from a significant speeding charge for a motor policy to a new tenancy that changes a property s usage for fire insurance. Communication here is key. As your broker, we can take care of changes in your insurance if your material facts change. All our phone calls during business hours are answered by REAL PEOPLE. You will never speak to a machine when you call us during office hours (and for client emergencies we have a 24-hour contact number). Solution: Make sure you inform us of any changes. We can advise if the change is likely to be considered material or relevant by the insurer. notes 7
5. Failing to Protect Your Future We all prefer to think disaster won t strike us. Insurance is good value when you consider the premiums per annum to cover a myriad of risks that could otherwise cost you hundreds of thousands following a loss. If you own a business, chances are you will be insured against multiple risks loss of assets, fire and perils, damage to goods in transit and liability, to name a few. But are you insured against the impact those risks may have on your business continuity? Small businesses often have no interruption insurance, which provides cover if a business cannot be operated because of damage to its property. And without this type of insurance the business may still operate but seriously suffer under higher incurred costs. Solution: Get Covered! Whether it is protecting your family s future, your business future or just the future of not losing out when you need to claim, the unforeseeable does happen. Be protected. notes 8
6. Failing to Review Your Needs As circumstances change, so do insurance needs. For example, the amount of life cover a single woman requires will be very different to what s preferable once she s the primary breadwinner with a young family and a mortgage. If you re 30, future earnings are your biggest asset. $300,000 Total Permanent Disability payment isn t going to be enough for the next 35 years until you qualify for the pension; income protection insurance is a necessity. But at 63, is it worth protecting the next two years of salary? Choosing us for expert advice means peace of mind that you will always have the cover you need, at a competitive price. No exceptions! notes 9
7. Shopping on Price We all want a good deal but going for the cheapest option can get you in trouble. Insurers price their products based on terms of the contract. The more they offer the customer, the more expensive they will be. Conversely, the more conditions and exclusions, the lower the level of cover and the longer the waiting periods, the cheaper it will be. In other words, you get what you pay for. It s like choosing cut-price brakes for your car it may seem like a good idea at the time, but not when you re speeding towards a stationary truck in front of you. notes 10
Why Choose Us We ve all thought... it won t happen to me! But, it s when the unforeseeable does unfortunately happen that good insurance cover comes into play. We have been locally owned and operated in Geelong since 1993 and really have the experience to make sure you ve got the right policy that suits your needs and circumstances. Insurance is a lot more than just cover for your home or car. And while it may be seen as a necessary evil, it s when something goes wrong that you re thanking your lucky stars you did something smart to get your insurance cover in place. Instead of lying awake at night worrying about how your business would survive should anything happen to you, your business, employees, house or car insurance is here for your peace of mind. We re brokers. What that means is that we are YOUR representative and our first responsibility is to YOU, unlike an insurance agent who represents the insurance company. And in the event of a claim, we fight for YOU, which means a faster and more successful claim. As a broker, we don t represent just one single insurance company. Instead, we can offer you coverage from a broad range of reputable insurers, making sure that choice is in your best interest. Even better, we are part of the largest insurance broker network in Australasia, the Steadfast Group. This scale gives Steadfast enormous buying power, flexibility and influence when negotiating with major insurers and results in us being able to provide you with access to multiple insurance companies offering a broad range of products with competitive pricing. It s the the best of both worlds our local and personalised service, with the insurance expertise and support of a large organisation. We re here all year round for advice and assistance, but most importantly 11
we re here when you have a claim you have someone you can rely on to help you... someone in your corner. We go into bat for our clients, and help get claims paid. We assist you in obtaining all the benefits to which you are entitled (including rarely claimed additional benefits that most people don t know exist!). You can rely on us for the expert knowledge and tools to make it easy for you. We ll even ask the right questions you may not have already thought of! Insurance is your safe guard against the unforeseeable happening. That can be anything from burglary to business interruption and income protection. We cater for all your unique risks, including: Business / Office Business Interruption Cargo Marine and Transit Contract Works Crime Directors & Officers Industrial Special Risks (ISR) Home & Contents Machinery Breakdown & Engineering Management Liability Motor Private / Commercial & Fleet Professional Indemnity Personal Accident Public & Products Liability Travel Workers Compensation Life Insurance Business / Office Business Interruption Cargo Marine and Transit Contract Works Crime Directors & Officers Industrial Special Risks (ISR) Home & Contents Machinery Breakdown & Engineering Management Liability Motor Private / Commercial & Fleet Professional Indemnity Personal Accident Public & Products Liability Travel Workers Compensation Life Insurance Income Protection Insurance Total Permanent Disability Insurance Trauma Insurance Business Expenses Insurance Buy/Sell Key Person Insurance Generally people aren t experts on insurance and that s what we are. We ll go out there and make sure the sums insured are correct. We ll give people advice on some of the risk management things they need to do, to prevent claims, but also make sure they ve got the right sums insured. 12
What Our Clients Say... Always managed to get the best deal, with the best cover... We were referred to Geelong Insurance Brokers, it d be over a decade ago, so over 10 years. It s been a one stop shop for us over the years. We ve always managed to get the best deal, with the best cover for our particular industry. We ve got trucks, trailers, machinery. It s all competitive and done quickly and without a hassle. It s a one-stop shop and it s easy, and I ve found Don and the staff in there easy to get along with, they understand what you re trying to achieve. They translate it well, from plumbers speak into insurance speak. Chris Beretta, Manager, DA Beretta Pty Ltd (Plumbing and Gasfitting) Looking after us, not themselves... Don, Chris and the team look after several home and business policies for us and take care of everything. They re always upfront and looking after us, not themselves. Our latest renewal was less than last year s premium they did the review without us asking, making sure we get top value... so refreshing from any business these days! 10 out of 10. Dean Kennedy, via Facebook (5-star rating) 13
You come back confident that you ve got the best deal you can get, with the greatest security... They ve supported us in all our growth. It s just never wavered and we get great service from them too. We tend to pride ourselves on dealing with like-minded companies. They do all the hard work, all the spade work, and you come back confident that you ve got the best deal you can get, with the greatest security. It s just peace of mind, I mean, I m not an insurance expert, so, I mean that s what we get with Geelong Insurance Brokers. John Spence, Founder & Managing Director, Prestige Jayco They go the extra mile... it s always the best to suit you... It s that sort of service where they go the extra mile, they find the right cover, they get it at the right price. They re not always the cheapest, but it s always the best to suit you. The whole team down at Geelong Insurance Brokers really do what they say they re going to do. If they say they ll ring you tomorrow, they ll ring you tomorrow. If they say they ll send you an email, they ll send you an email. Greg Ure, Chief Executive Officer, Caron Laboratories Pty Ltd 14
Claim your FREE 26 Minute Tailored Insurance Audit, Valued at $49... We want to make sure you have the best insurance cover for what best suits you! You can take advantage of our expert advice with our free, 26 minute Tailored Insurance Audit where we work in partnership with you to ensure you have the best cover at a competitive premium. Rest assured there s no obligation and no hard sell. We re on your side, and our goal is to ensure have the cover you need, at a competitive price. No exceptions! Claim yours now: simply call us on (03) 5229 0061 or email info@gibvic.com.au and we ll make a suitable time to help you. We treat our clients as if we were selling insurance to ourselves. We wouldn t sell anybody a policy we wouldn t buy ourself. 15
For all types of general, business & life insurance % 03 5229 0061 gibvic.com.au 34 Ormond Road, East Geelong 3219 PO Box 96, Geelong Vic 3220 Connect with us: