Tactics for more effective business insurance

Shira Smolko

Since the pandemic, many companies have had to shift how they do business and ways of working to adapt. As new risks have emerged, so has the need to reassess their requirements for insurance cover. Interestingly, in the last year a recent study has shown 84% scoring their broker 8 or more out of 10, compared to 60% last year1 for SMBs. This is likely due to the support they are able to provide during to this shift in business and external factors.

ARA Insurance, supported by Marsh have prepared some tips for SMB retailers in light of the growing focus on coverage.

Insurance can vary in complexity from public and professional indemnity, commercial motor vehicle, workers compensation, business interruption and property damage, to cyber and directors and officers (D&O) insurance. Typically Business Pack Insurance can cover a lot of core requirements but it’s good to assess the entire nature of the business to ensure retailers are getting the value they need.

When should I consider adjusting my insurance coverage?

Businesses that have experienced change or rapid growth should consider also reviewing their coverage to avoid over or under payments.

Examples may be via people risk, changes to IT infrastructure, moving office, warehouse or bricks and mortar locations, or changes to managerial structure that my require advisory or D&O coverage for example. More complex insurance offering can be tailored to your business needs to maximise risk mitigation.

What happens during renewals?

In the last year, over half of SMEs renewed insurance without seeking expert advice, potentially leaving themselves open to increased risk1.

Optimise based on your requirements. It is important to review your business policy coverage on an annual basis to fully ascertain and ensure that your insurance coverage remains fit for purpose. The ARA Insurance brokers at Marsh can also provide industry specific backed data, to guide clients in both chartered and unchartered waters.

Consider coverage. Avoid assessing insurance solely on premium. Insurance providers can base a policy’s premium on the risks they take on and having a high number of exclusions can reduce these risks, which could result in a lower premium.

What should I consider in finding the right insurance for my business?

Take time to save time. To get the best result always make sure to allow sufficient time prior to renewal. At ARA Insurance we typically like to have a month’s notice in order to give you the best result. We support via analysing the unique requirements of your business, in a walk through process, to help guide and navigate through your risk and insurance needs.

Get it right. Be sure your current offering is being tailored to your exact needs. At ARA Insurance, we offer extremely flexible options letting you choose the risk you want to insure.

What can I do to avoid the pain with claims?

88% of SMEs reported that they made changes to their insurance following a claim and 22% have started using a broker because of a claims experience1. Risk mitigation advice can be provided by a broker, but in the unlikely event of an incident it is vital to record the incident and fully document it. If possible provide video and photos and any other evidence available.

Contact your insurance provider or broker as soon as possible to gain detailed step by step advice. In the case of a natural catastrophe or property or machinery damage for example. Do not remove any damaged equipment or attempt to repair until it has been assessed by the loss adjuster.

ARA Insurance supported by Marsh can provide guidance and transparency in a claims settlement process, and works with the carrier to ensure a fair outcome for you in a timely manner, and as an advocate for your business.

How can I know what I really need?

While the risk requirements from one business to another will always differ, there are several risk exposures commonly faced by Australian retailers. To help safeguard your business from these risks, our specialist brokers recommend considering business insurance cover however, if any of the above tips are relevant to your business, give your insurance advisor a call to ensure you thoroughly understand the insurance solution on offer and that it is the right cover for your needs.

Contact the ARA Insurance team at Marsh on 1300 133 988 or at [email protected] to speak to them about developing an insurance and risk management program that aligns with your business risk requirements and appetite.


1 Vero SME Insurance Index Report, Vero, December 2021

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369)(“MAI”) arranges the insurance and is not the insurer. This publication contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from MAI on request. This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. MAI shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. The Australian Retailers Association receives a financial benefit when a policy is arranged for its members by MAI, enabling it to continue to provide further services to the retail industry.


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