Changes to your circumstances and how it affects your Insurance.
Have you ever had a change to your circumstances and considered
“how does this affect my insurance”?
For home, contents and motor vehicle insurance it could be as simple as a change of address, an extension to your property, a driving license suspension or extra’s/modifications added to your car.
For business insurance it can be numerous things, a few examples are:-
– addition of new services or change to what your business does
– engaging contractors
– increases in turnover activity
– purchase of additional machinery, systems or stock
It’s vitally important that people and businesses remember there may be an impact to their insurance if their circumstances change. Scott McCarthy, CEO of Ausure explains, “Insurance policies are a contract between the insurer and the insured. The information provided by an insured forms the basis of the contract. If that information changes and the insured does not advise the insurer, depending on what that change is, it can have a detrimental impact to the policy. If there is a claim on the policy it can give the insurer grounds to deny the claim. Clients need to recognise when there is a change to their circumstances and advise their broker. When a broker conducts a review of your insurance they should run through all of the details about you or your business. Often, this doesn’t receive the care or attention that it should as everyone is busy but it is an imperative part of insurance if people and business want to be able to rely on their insurance policy to respond to a loss they suffer that should be insured by their policy. If you aren’t confident you are getting the right advice, contact an Ausure broker, who is able to provide you with a review.”
Ausure Insurance Brokers take the time to complete thorough reviews annually. These reviews are designed to highlight any changes in your circumstances. However, things often change in between reviews, and it is important you notify us of these. If you need to make a change or want to discuss this further you can call us on 1300 587 225, or find your broker here.
Here is an example:
John has owned his own butcher shop. He has used the same direct insurer since he started the business 20 years ago. Every year John receives an email reminding him that his renewal is due. The email states if there are no changes, nothing needs to be done, and the premium will be debited out of his account.
Recently, John decided to do some minor renovations to his shop front and upgrade his refrigeration system, totalling $85,000. A month later, a fire starts in the adjoining building and burns down his shop completely. John contacts his insurance company to make an insurance claim for a total loss of all his property. However, as he has not declared the machinery to the insurer and increased the sum insured appropriately, he is not reimbursed for it and is left out of pocket by over $85,000.
What should have happened:
Upon purchasing the new machinery, John should have contacted his insurance company to notify them of the purchase. This would have resulted in the sum insured on his policy being increased and at claim time, John would have been reimbursed for the total loss.
“Every Ausure adviser is trained to provide thorough insurance reviews.”
Ausure’s Claim Manager, Darren Free, has seen it all. He explains how Ausure’s review procedure minimises the risk for circumstances changes to be missed – “Every Ausure adviser is trained to provide thorough insurance reviews. Ausure provides our brokers with a number of tools and document checklists that are followed to ensure the client is asked the right questions and any required changes to policies are captured. We understand that clients may choose not to take every policy that is recommended to them, but we want to ensure that they can rely on the policies that they do take out.
Businesses that use direct insurers may find it difficult to get tailored advice for their circumstances. I always recommend working with a broker, however – UnderstandInsurance.com.au is an initiative of the Insurance Council of Australia which helps people understand insurance and can be a great starting point to wrap your head around the maze that is insurance.”
If you have a current insurance policy, whether it be with Ausure or somewhere else, we invite you to contact us to discuss your insurance questions or concerns. Ausure advisers take the time to understand your individual circumstances and provide you with tailor-made insurance solutions that work for you. Contact Ausure today by calling us on 1300 587 225, completing the form below, or finding a broker here.
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