Lisa Carter - Clear Insurance
Maximising Value in Your Business Insurance Program
As a business owner, you're constantly evaluating investments and looking to optimise spending. Yet insurance—one of your most important financial protections—often receives minimal scrutiny beyond comparing premium costs at renewal time.
There's an opportunity here to ensure you're getting true value from your insurance investment.
Reframing the Value Equation
When evaluating insurance, price naturally comes to mind first. However, savvy business owners are looking at a broader value equation: Value = (Protection + Service + Expertise + Claims Outcomes) ÷ Cost.
This perspective shifts the conversation from "What's the cheapest option?" to "What's the best return on my risk transfer investment?"
Understanding Total Cost of Ownership
Premium is just one component of your insurance investment. Consider what happens when a claim occurs: How quickly is it resolved? Does your adviser advocate effectively on your behalf? Are there unexpected gaps in coverage or excesses that impact your cash flow?
These factors—often invisible at renewal time—significantly influence the real cost and value you receive from your insurance program.
Five Key Value Indicators
Consider benchmarking your current insurance program against these measures:
Coverage accuracy: Your insurance should align with your current and evolving business operations, revenue streams, and risk profile.
Strategic advice: Beyond annual renewals, your adviser should provide ongoing insights tailored to your industry and growth plans.
Claims experience: Effective claims handling and strong advocacy during the claims process are crucial indicators of program value.
Business alignment: Your insurance should support your strategic objectives, whether that's expansion, diversification, or operational changes.
Transparency: Clear communication about adviser remuneration, fees, insurer selection, and policy terms builds confidence.
Taking a Strategic Approach
Many successful businesses conduct annual insurance value audits, just as they would for other significant vendor relationships. This includes:
Moving Forward
Consider what an ideal insurance partnership would look like for your business. What level of service would deliver the greatest value? How could your insurance program better support your business objectives?
After all, strategic risk transfer isn't about spending less—it's about protecting more of what you've built.
If you would like advice or a no-obligation risk and insurance review, contact Lisa Carter on 0405 219 861 or email lisa.carter@clearinsurance.com.au.
