Buying business insurance online, know the risksPosted on 15 May, 2015 in Insurance
The ads with meerkats in smoking jackets make it sound so simple—this much cover, this cost, tick the box, plug in your credit card number and you’re protected, right?
No. You’re probably not.
Buying insurance online is only skimming the surface of risk protection. Claim disputes in Australia are increasing dramatically because people think they’re buying the cover they need, but usually they’re actually not.
Online insurance is cheap not just because the middle man is removed—it’s because the product is basic and generic.
Taking that gamble with something like car insurance is one thing. But we’ve seen businesses come undone at claim time when they realise the cover they thought was cheaper, quicker and easier actually didn’t cover them at all.
Is it really worth it?
Whatever saving that can be achieved by dealing online or over the phone with an insurer will be minuscule compared to not having a fire claim fully paid because you were underinsured and the insurer didn’t explain to you the penalty clause when you initially dealt with them.
This is just one of the many traps that await you when purchasing a product directly from an insurer and not seeking personal advice.
Talk to a professional
Speaking with a licensed risk adviser is essential in guiding you through the insurance placement process if you want to ensure you have a tailored insurance risk program that will be there to use when you need it.