Insurance 101 Facts

 

What is the cost for insurance?
Insurance is made up of different premium amounts.  Usually there are the following:
Base Premium + GST+ Stamp Duty+ Brokerage fee = $total premium. 

In some states, you may need to include FSL and Terrorism levy.  Depending on the insurance you may also need to include Underwriters Levy + GST, which all adds to the TOTAL PREMIUM

How much do insurance brokers charge?
Some brokers have a formula for calculating the brokerage fee.  Fees can range from $50 + GST to $700 + GST.  However, it depends on the product being purchased and how much work was involved in obtaining the cover for the client.

When do I pay an insurance Broker?
The Insurance Broker usually includes their fee in the premium that they quote to you at the time of quoting your insurance.

Who are insurance brokers aligned with?
Insurance brokers always act on behalf of the client – NOT the insurance company.

What happens when I need to make an Insurance claim?
If in the event you have a claim, the first thing you should do is contact your insurance broker. They can take the details of the claim and organize the insurance company to send an assessor if required.  Some insurance brokers will simply take the details, and advise you to call the insurer on a direct number.  Or send you a claim form to complete and send back, and advise you what steps need to be made to have a quick reliable claim.

What insurance when is required when starting a business?
All new businesses should have Public liability insurance – this insurance covers you for any personal injury or property damage you cause whilst in your business.  If you have equipment its always advisable, to have cover to replace the equipment should it be destroyed by an insured event?

What happens if I want to do changes, how does that effect the insurance?
If you purchase new equipment or a new asset, we can do what is called an “Endorsement” to the policy.  The Term Endorsement simply means we attach to the existing policy some additional items, which need to be covered.  You usually pay what’s called and Extra premium – but the calculation is from the date you added the new item,  till the expiry date. (Prorated).  Obviously, if you sold and items and needed them removed, from the policy and endorsement can be done,  and maybe a refund of premium for what you haven’t used (Prorated) can be processed.

What Insurance does a business need to operate?
All new businesses should have Public liability insurance.  This insurance covers you for any personal injury or property damage, you cause whilst going about your business.  If you have equipment its always advisable to have cover to replace the equipment should it be destroyed by an insured event?

You may also need Theft cover, and Glass cover if the lease of your premises has the glass cover. Professional Indemnity Insurance if you are giving written or verbal advice, is also another insurance that you may need.  Consult your broker for a full range of covers available.