Australians may be known for their laid back approach to life but, as many brokers undoubtedly know, that lax attitude can cause a whole host of problems when it comes to securing the right amount of coverage for their small business.
“As insurance professionals, we do know that it does happen and part of our education to clients in ensuring they understand the risks associated with their industry but that they may not have generally claimed for previously,” he adds.
Pagano’s comments come after Vero launched its Risk Register tool which aims to help brokers better educate SME owners about the potential risks to their businesses. Based on over 40,000 claims, the register generates custom reports focussed on specific occupations and industries, rather than providing more general guidance.
For example, the register shows that the top insurance-related causes of loss for hotels are storms (36%) followed by burst or leaking water pipes (14%). For department stores, damage from a person, object or vehicle was the top cause of loss at 33%. Slips, trips and falls came in second at 29%, followed by accidental loss or damage at 10%.
However, somewhat more unusually, explosions, electrical failures and faulty workmanship were also highlighted as causes of loss for department stores.
“The Risk Register tool gives brokers an advantage as it allows them to show clients the breadth of risks for their business, and proactively discuss options to meet more of their insurance needs,” Pagano tells Insurance Business.
“This will certainly assist brokers in quantifying certain risks the client may not fully understand or be aware of,” he adds.
In addition to the register, Vero has also made a team available to provide more specific examples of relevant claims should brokers request them. According to Pagano, this is because clients and SME owners often find it easier to relate to real-world incidents rather than just figures on a page.
“In my experience, while theory and data are very helpful, practical examples are still the best way to help anyone understand potential risks,” he says.
“Insurance is all about peace of mind. If a client can be shown real-world risks for businesses like their own, and the broker can discuss the relevant policies needed to cover, this will help maximise their peace of mind. Brokers are uniquely placed to give SMEs the confidence to focus on their business, knowing if the worst was to occur, they are covered.”