Broker Clients Are Better Protected

Many tradesmen and insurance brokers already knew this, but a recent survey has shown that businesses that use brokers are generally better protected.

Insurance company CGU commissioned a survey of 477 small business owners from rural NSW, Victoria and Queensland regarding their insurance coverage.

The survey showed that small business owners who used an insurance broker were better protected from events such as fire and theft than other small business owners who did not use a broker.

Given that more than half of the businesses surveyed reported some form of financial loss during the last twelve months, it certainly shows the important of insurance.

Many of the financial losses reported involved machinery and equipment breakdown, which is of major importance to many tradesmen who rely on heavy equipment to operate their business.

Survey Results

The survey results showed that only 17% of business owners who purchased insurance directly from an insurance company had business interruption insurance, whilst of those who did use an insurance broker, around 34% had business interruption insurance.

Many tradesmen have never even heard of business interruption insurance, let alone have a suitable policy in place.

Tradesmen should certainly consider how this type of insurance could protect their business. Essentially this type of cover protects your business from financial losses that may occur because of certain outside forces interrupting your ability to do business.

CGU’s Response

Andrew Beer, who is the national manager of sales and service at CGU, said that the research showed how business can benefit from using an insurance broker.

“Small business owners need certainty in their insurance cover and can’t leave anything to chance – using an insurance adviser means you will get tailored advice that is going to provide the best outcome for your business,” he said.

Mr Beer said some small business owners don’t use insurance brokers because they believed that a broker would cost them more, or that their business was too small to need a broker.

“Both assumptions are generally incorrect.” Said Mr Beer. “Insurance advisers have experience in your type of business and can offer expert advice on the right package of covers for you – they will get you the covers you need, and make sure you are not paying for covers you don’t require.”

“They won’t necessarily cost you more either and can save you money and even your business in the long run.” He said.

Using a Tradesman Insurance Broker

No matter how small or large your trade business is, from a sole trader through to a national building company, you can definitely benefit from the services of a qualified tradesman insurance broker.

Get in touch with us to find out more about how a broker can help your trade business.