Risky Question- Appointment
of Insurance Brokers
 |
Rod Hughes responds to a risk management question
often posed by sport administrators. What do you believe to be the best way to get the
cheapest insurance cover for my organisation? |
Let me say initially that it can be a very
false economy to be looking for the cheapest cover. Your priority must be to obtain the
insurance cover which best addresses the risk exposures of your sport and provides
protection in that regard. Not many would dispute that sport is now business – in
fact this is a claim made proudly by the sports industry. With that comes the
responsibility of managing sport as a business and being exposed to the same risks
(physical, financial and legal) as any other business. Insurance for sporting
organisations is complex. Knowledge and experience pertaining specifically to sport is
required from a professional.
...be particular about who you
appoint as your broker...
My opinion is that the first decision (and
a critical decision) to be made when addressing insurance for your sport is which
insurance broker to appoint. This decision should be based on what value that broker adds
to the relationship. Firstly, the broker must have the knowledge and experience already
mentioned so that the appropriate insurance protection can be tailored and sourced from
the insurance market. Then you have to ascertain what other value the broker is going to
provide. Issues such as claims management, communication with and education of your
members, risk identification and control services are vitally important.
|
|
Once you are satisfied that you have made the appropriate appointment
decision then it is the brokers role to obtain the best price possible
for the client. In my opinion there is absolutely no advantage in having
a number of brokers all running around a very small sports insurance
market trying to find the cheapest price – in fact such a situation is
more likely to work to the detriment of the sport. An insurer expects a
concise appraisal of what covers are required. Any ambiguity in
presentation not only confuses the underwriting facts but in some cases
will result in the insurer declining to offer terms. Often there is
confusion that arises from the same risk being put forward with
conflicting rating criteria.
My advice is be particular about who you appoint as your broker, then make sure they
are doing the job for which they are being paid. Ask questions.
If you have any queries you wish to address to Rod and the IEA
team please send them an Email from their website www.ieasport.com.au
Summer 2000
IEA
has offices in every state. National freecall number 1800 SPORT
1
(1800 77678 1)
Email:info@ieasport.com.au
Disclaimer The information provided in
this Email and on the IEA web-site is to be used as a reference only. IEA accepts no
responsibility for the accuracy of the information or your reliance upon it. The
views of contributors are their own and do not necessarily represent the
views of IEA
(Click Here For
Details)
|
