Choosing the right policy is a complex process and there are many factors to consider when deciding on the right cover for your pharmacy. To help you, consider the following five tips to use when comparing insurance policies so that you can arrange insurance that’s suited to your business’s needs and risk appetite.
The past year has been a powerful demonstration of how critical it is for Australian pharmacies to be protected against a multitude of risks. We recommend starting early when considering what cover is right to protect your business and ensure you allow both yourself and your broker adequate time to assess your current insurance arrangements. Make sure to supply all relevant information to your broker. These may include things, such as a copy of your current schedule and security and any changes to your property details.
Understand your risk appetite.
It is important to assess your business’s risk appetite or the maximum amount of risk your business is prepared to accept to attain its objectives. Review your insurance thoroughly to ensure that the limits of cover and claims excesses align with this.
The role of a broker includes being able to align your risk profile to that of a targeted insurer.
Make sure the cover level is suitable for your business.
Not all policies are the same, so it is crucial that you thoroughly review each policy’s details when comparing to ensure you choose one that is adequate for your business.
Key things to pay attention to include:
- Limit of Liability
- Inclusions & Exclusions – Each insurance provider offers different cover terms in their policies, so it is important to review these closely with your broker to confirm that the cover level is adequate for your business needs.
Don’t compare insurance solely on premium.
Although considering the price of your premium is important when comparing different policies, we recommend carrying out a side-by-side comparison of all available options before coming to a decision. Insurance providers can base a policy’s premium on the risks they take on and having a high number of exclusions can reduce these risks, which should result in a lower premium.
Work with brokers that “get” your business.
Choosing the right cover for your business can be overwhelming. Working with brokers that understand your business’ needs, can help you save time and money, assess your risks, and ensure that your insurance policy is fit for purpose. They will also look to act on your behalf and provide advocacy support in the event of a claim. Finding an experienced insurance broker, you can trust, will benefit your business in the long run in ensuring you achieve an outcome that optimally suits your insurance needs.
There is much to consider when choosing the right policy for your business and following the above tips is a great starting point. If you have any questions, please contact your insurance advisor, who can help provide a detailed breakdown of your current insurance policy.
This content contains general information and does not take into account your individual objectives, financial situation or needs.