Education – some things you should know about your Business Insurance


How insurance is priced

An insurance premium is made up of the costs charged by the underwriter to cover the risk plus administrative costs added by either the Lloyd’s reinsurance broker, local insurers or local brokers to provide certainty of service. Many of these intermediaries are only involved in the chain because it has been traditional to arrange insurance that way – it was the most efficient way to arrange insurance when paperwork had to move physically from place to place. As much as half the premium you pay today can be attributed to the traditional methods of doing business.

EnviroSure insurance has been designed from the ground up for individuals who work in the accreditation and certification industries using modern communications technology and business methods to remove unnecessary handling of documents and information. This new way of writing insurance removes the additional cost of intermediaries meaning that we can charge lower prices for the same cover. Get a quote to see how much you could save with EnviroSure Business Insurance (Professional Indemnity and Public Liability).


Insurance Broker

An insurance broker sells insurance on behalf of the insurer, buys insurance on behalf of the insured or negotiates an insurance contract between the two.


Insurance Broker as “Agent for the Insured” (How EnviroSure operates)

When an insurance broker acts as an agent for the insured, they represent the person that is looking for insurance and go out to the marketplace to find an insurer who is willing to provide cover against the risk. This approach has further been modified by creating a simplified policy to insure a number of people with similar risks and finding the insurer to back it, as you can see on our Insurance page.


The agent:

  • Earns income from the customer (this cost is included in the premium you pay)
  • Works on behalf of the customer
  • Protects the customer’s interest
  • Will advise you (their client) on how best to handle a potential claim
  • Will argue on your (the customer’s) behalf if the insurer unfairly refuses a claim

Insurance Broker as “Agent for the Insurer” (How most businesses selling business insurance operate)

When an insurance broker acts as an agent for the insurer, they act on behalf of the insurer that is selling the insurance and go out to the marketplace to find customers with the kinds of risks that the insurance may cover.


The agent

  • Earns income from the insurer (this cost is included in the premium you pay)
  • Works on behalf of the insurer
  • Protects the insurer’s interest
  • Will side with the insurer if the insurer refuses your claim

Underwriters

EnviroSure Business Insurance (providing separate Professional Indemnity and Public Liability policies) is underwritten by A rated underwriters in Lloyd’s and the London insurance market. 

Visit www.lloyds.com for more information about Lloyd’s of London.

Direct Offshore Foreign Insurers (DOFI’s)

DOFIs are not authorised by the Australian Prudential Regulation Authority (APRA) and are not subject to Australian consumer protection laws – unlike the A rated underwriters in Lloyd’s and the London insurance market we use to secure EnviroSure business insurance.

Because of this thin regulatory framework, EnviroSure does not use DOFIs to underwrite your business insurance.


APRA and prudential regulation of insurance companies

APRA regulates insurance underwriters under the Insurance Act 1973. One of the benefits of this regulation is that the regulated insurance underwriters, like Lloyds, are backed by an APRA regulated trust fund which covers claims in the unlikely event that Lloyds exhausts its own funds when paying out claims.


Relationship with Mackellar Insurance Brokers

EnviroSure is a trading name of Insurance Choice Pty Ltd which operates as a corporate authorised representative under licence Mackellar Insurance Brokers AFS: 243 531. This is a traditional way of doing business and allows EnviroSure representatives to lean on insurance expertise which seems to be much scarcer as our insurance sector matures.

The initiative created through EnviroSure, by Insurance Choice, allows YOU to enjoy significant insurance savings. Our years of experience in creating traditionally reliable insurance covers, combined with the advances made in financial services delivery, makes our total product package uniquely recommendable.


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