Insurance Assurance with Alleviate Risk

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As the world becomes more unpredictable, business insurance premiums are rising. Melanie Rosettenstein asks an expert why ensuring your business is covered for a rainy day is more important than ever.

It’s no secret that business insurance premiums are generally on the rise with some sectors stabilising but as a necessary line item in the annual budget, business owners should think twice about cutting their business insurance to save on costs.

Industry experts are anticipating a 10-15% increase in premiums across several types of insurance this year and attributes the uptick to various factors. 

Alleviate Risk’s Morgan Appleby said that catastrophic losses from natural disasters together with high inflation and supply issues were having a significant impact on premiums as insurers face greater risks, a rise in reinsurance costs, and financial exposures.

“A tightening of underwriting capacity also means fewer insurers are willing to take on high-risk establishments, which also increases costs,” he said.

Despite rising premiums, Morgan said businesses must resist the temptation of reducing their insurance coverage.

“Insurance provides businesses with a safety net against operational risks and unforeseen events,” he says.

“It also protects businesses that have substantial investments in property, equipment and inventory by protecting these assets from damage or loss – and ensuring a quick recovery of essential items should something go wrong.”

To sustain an uninsured loss in a tougher economic environment where cash flow is tight can cause significant stress on all aspects of the business operations.

Businesses are also legally required to have different forms of insurance including workers’ compensation, liability insurance and motor insurance with failure to comply bringing the risk of fines, legal penalties, and even the suspension of business operations.

“Insurance also allows for business continuity in the face of unforeseen events that may cause damage to your property or halt operations,” Morgan said. “It enables businesses to continue to operate after a major incident if it covers items such as lost income, and is important to help maintain cash flow while a business recovers from disaster.”

To get the best insurance deals for your business, Morgan recommends
the following:

  1. Assess your needs: Determine the types and levels of coverage your business requires.
  2. Risk management: Implement strong risk management practices to reduce the likelihood of claims. This can include safety training for employees, installing security systems, and maintaining a safe work environment.
  3. Review your insurance regularly: Regularly review and update your insurance policies to reflect changes in your business. This ensures you’re not paying for unnecessary coverage and helps adjust for any new risks.
  4. Work with an insurance broker: A broker can provide expert advice and help negotiate the best terms as they have access to a variety of insurance providers.

Events like the Black Summer and multiple large-scale flooding events underscore the critical need for comprehensive business insurance.

These events have shown how unpredictable and devastating large-scale disasters can be, affecting businesses across all sectors and regions. 

By doing the research, implementing stringent safety procedures, and keeping your finger on the pulse of your insurance policies, rising premiums can be managed.

As a highly-qualified insurance brokerage, Alleviate Risk has a proven track record working with all types of businesses from start-ups to large-scale corporations and industry leaders, ensuring a safety net in case of disaster.

With access to multiple providers and a wide range of products such as Business Pack, ISR, Commercial Property Owners, Public Liability, Professional Indemnity, Management Liability, and Cyber Protection, Alleviate Risk is the ultimate partner for safeguarding against the unpredictable.

Isn’t it worth doing what you can today to protect your business against the unknown challenges you might face tomorrow?

Book an obligation-free insurance health check with Alleviate today, phone 5458 6880.

For General Insurance: Alleviate Risk Pty Ltd ATF The Alleviate Risk Unit Trust T/As Alleviate Risk Management & Business Insurance Is a Corporate Authorised Representative of Insurance Advisernet Australia Pty Ltd, AFSL 240549, CAR 1234983 www.insuranceadviser.net. Morgan Appleby Adviser Number No: 280983.

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