EOFY insurance checkup for your SMEJune 27th, 2019 | | industry
The end of the financial year (EOFY) is a time for stocktakes, which includes taking stock of your insurance and risk-management program.
Reviewing your insurance is an „essential task” for your EOFY to-do list, the Australian government’s business.gov.au website states.
No doubt your to-do list is already pretty long, so we’ve put together a simple guide to completing an EOFY insurance checkup with the help of Fred Allsopp or Andrew Bunting at Allsopp Bunting Insurance.
They recommend: “start by asking yourself: what changes have occurred to my business this year?”.
“What additional assets do you have? What assets have you disposed of? What has been your growth, or reduction in business? What are your legislative or contractual requirements?”
Monitoring your assets
Let’s go to their first suggestion – assets.
Ideally, the moment you’ve taken possession of a new asset, or sold one off, you have notified your insurer.
But if not, now is a good time to do so.
Fred and Andrew suggest:
“Go to your broker with an estimate of the replacement value of the asset. It doesn’t need to be overly detailed, but have something which sets out the replacement value of the assets you want to insure.”
Watching your growth
How much your business grows during the year can impact factors such as your stock, staffing and credit levels.
Therefore, it’s crucial to review your insurance cover to see if it’s sufficient and to consider how well it will provide for projected changes in the coming year.
Fred and Andrew suggest:
“If you haven’t calculated growth, staffing, wages and revenue accurately and you have a major loss, you’re potentially underinsured,”
“Our estimate is that only about a third of people who are in occupations that would benefit from business interruption insurance have it.”
Legislative or contractual requirements
Have you read the fine print on that lucrative contract you recently secured? If not, now is the time to do so.
“Unfortunately, in my experience, businesses often enter into contracts without reading them,” Fred says.
“Then, after they have signed, they realise that they have to obtain types of insurance that either don’t exist, or are quite expensive, and they haven’t allowed for that in their contractual negotiations.”
Fred and Andrew are also keen to remind SMEs to review their legislative obligations.
“Quite often, for certain occupations and in certain sectors, you’re required by law to have insurance,”.
For instance, workers’ compensation is compulsory for many Australian businesses.
Contact Fred Allsopp or Andrew Bunting at Allsopp Bunting Insurance to start the review. It’s free a review so what have you got to lose!
Written by Allsopp Bunting