Why your client needs Cashflow Insurance
Cashflow is important to a business because without it a business can not
function.
Not only does cashflow pay the owners of the business and their assets, a continued flow of cash enables the business to meet customer needs, keep payroll flowing to staff, and pay interest on any loans and debts.
Our product protects your client's business from loss of profits and with some clear benefits over ISR and packaged business interruption products. These benefits provide even more reason to use standalone cashflow insurance as opposed to other types.
For more information please refer to the Cashflow Insurance Policy Document.
Looking deeper at the numbers it's also clear that it's critical for your business that the right product is provided, with over a quarter of businesses recovering from a major material damage loss changing brokers soon after.
Choosing the right business interruption insurance is not only important for your client, but it is also important for you, as their broker. Did you know that 26% of recovering businesses change their broker? This is because sometimes client's expectations of the product may not be met.
If you would like a clearer understanding of business interruption insurance we can offer you this through our training program.
Business Interruption Insurance seeks to put your client in the same position as if the event had not occurred.
What types of BI are there?
BI is typically provided under 3 types of policies
To understand the differences between the types of BI insurance available, IUA offers ANZIFF approved training. Register your interest in attending.
What are the Risks involved in not having Cashflow Insurance?
What are the Risks involved of not having the right type of Cashflow Insurance?
At IUA we have specialised loss assessors working solely on the cashflow claim.
Not only does cashflow pay the owners of the business and their assets, a continued flow of cash enables the business to meet customer needs, keep payroll flowing to staff, and pay interest on any loans and debts.
Standalone Cashflow Insurance offered by IUA
IUA offers standalone business interruption (cashflow insurance) insurance that delivers more, getting your clients back on their feet sooner.Our product protects your client's business from loss of profits and with some clear benefits over ISR and packaged business interruption products. These benefits provide even more reason to use standalone cashflow insurance as opposed to other types.
For more information please refer to the Cashflow Insurance Policy Document.
With 42% of Australian businesses operating without any business interruption insurance, it's clear that there's a vast important need to be met.
Looking deeper at the numbers it's also clear that it's critical for your business that the right product is provided, with over a quarter of businesses recovering from a major material damage loss changing brokers soon after.
Choosing the right business interruption insurance is not only important for your client, but it is also important for you, as their broker. Did you know that 26% of recovering businesses change their broker? This is because sometimes client's expectations of the product may not be met.
If you would like a clearer understanding of business interruption insurance we can offer you this through our training program.
Following a major material damage loss 70% of businesses fail (ICA 2002)
Business Interruption Insurance seeks to put your client in the same position as if the event had not occurred.
What types of BI are there?
BI is typically provided under 3 types of policies
- ISR
- Business package
-
Standalone policy (IUA)
To understand the differences between the types of BI insurance available, IUA offers ANZIFF approved training. Register your interest in attending.
What are the Risks involved in not having Cashflow Insurance?
Risk 1 - Disruption to your business
If your company does not have cashflow insurance and a disruption happens you would have to fund the recovery of your business yourselves. Often companies will not have the cashflow to do this and/or it will be delayed without technical claims support.Risk 2 - Impact on business stakeholders
Disruption to operations and cashflow impacts ability to meet the needs of key stakeholders including customers, key staff and corporate stakeholders (e.g. banks) which often challenges the ability of the business to fully recover.Risk 3 - Loss of goodwill
Your company could lose goodwill and associated value in the company from loss of future earnings resulting from non-recovery.What are the Risks involved of not having the right type of Cashflow Insurance?
Risk 4 - The possibility of underinsurance
One of the main risks of having a packaged policy is the expectation gap for the insured. The penalties from underinsurance, common due to the difficulty of estimating future cashflow, leverages the gap in cover through the average clause where applicable.Risk 5 - Loss of income due to time excesses
Packaged policies tend to have time excesses, which means they will wait a certain amount of time (e.g. 48 hours) before a claim qualifies under the policy. With the IUA Standalone Cashflow Insurance claims assessment start immediately - there is no time deductible which will help your business get on its feet faster.Risk 6 - Focus on the interruption claim
Another key risk of a packaged policy is the management of the cashflow insurance claim alongside the material damage claim by the one assessor. Often the cashflow insurance claim will be an afterthought and not paid till late in the process, resulting in the insured being cash strained in the meantime and potentially suffering loss in customers.At IUA we have specialised loss assessors working solely on the cashflow claim.