It wont happen to me!

In this weeks memo we want to focus on a real life story that has been in the news lately. It makes you ponder on where our priorities lie sometimes.

Insurance - as many think - is really low on the priority list. Here is a story that may change your mind. In Brisbane just a few weeks back a single mum and her 7 children aged 2 to 13 were roused by their smoke alarm. A fire had started behind a rental Television in the wiring and was quickly engulfing the home. All 8 got out in time but after the fire was extinguished were left with nothing.
                                         
Great news that all are okay but the family was not insured for contents insurance. We want to focus on what contents insurance can do for. Doing a quick calculation through one insurer on a policy limit of $35,000 personal contents generated a premium of $500 or $41 per month. (This is an indication for example purposes only based on our old address in Postcode QLD 4227) If this family had this cover, for $41 per month the Insurer would have paid - not exhaustive - on behalf of this client:

- Cost of removal of all debris.
- Temporary accomodation for a period of up to 12 months.
- Counselling.
- Fire Brigade attendance fees. (If not already covered by the Landlord)
- Full replacement of the contents to $35,000 at nil excess as it is a total loss.

It's only when the worst occurs that you see the value in your insurance. If this family had been paying $500 per annum for say 5 years they would have paid out $2,500 to the insurer. After one terrible fire the insurer turns around and pays out over $35,000. With removal of debris costs and temporary accomodation this total cost could reach over $80,000. They get their life back on track and become self sufficient once more for $41 per month.

When times are tough it's usually your insurance that you look at as a way of reducing your costs. The whole 'It wont happen to me,' can happen. Sure look for ways to reduce your insurance costs by self insuring but to carry none whatsoever is no way to protect your family or your business.

Another example on a business level. We know of a business that carried inadequate insurance for many many years. A personal injury claim was brought against them and they have now found out that their policy will not respond due to the exclusions within the Public Liability section. They were saving over $10,000 per annum on their insurance bill however now have a potential legal situation that could cost them unknown quantities of money. It wont happen to me??

With Public Liability it can sometimes be your best option for defence costs. Sure you may not be liable for an incident but your Public Liability insurer can defend you against further loss or litigation. We know of one person who received over $14,000 in legal costs in defending them against a third party. As they had the right Liability insurance, it only cost them a $500 excess. Now thats cheap legal fees!!

Our philosophy as previously mentioned is to partner with you in your business. We need to protect and educate for the sake of the community and families. In all honesty if you take out your insurance through some direct insurer or another agent, thats fine, just takethetime to think about the ramifications of NOT insuring at all. Naturally their are exclusions in every policy that you need to be aware which is why using us can benefit your business and family. Take the time to read the exlcusions and be aware of what you are paying for. Hey, even check it with us if you want. We are more than happy to help with Free advice on insurance through our companies.
              
It wont happen to me? Well the amount of time we spend working on claims says otherwise.