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Controlling
Insurance Costs Cont...
Questions
To Ask Your Broker
It
is virtually impossible to compile a generic list of questions that
should be asked of your broker. The questions will depend of the
risk to be insured. Even when looking at a single industry
(sport), the questions say a suburban croquet club will have for it's
broker will be quite different to the questions of a football club
with licenced premises and poker machines. However, the
following list provides a broad outline of the type of issues that
should be addressed with your broker. These questions are split
into two categories;
a)
Prior to broker appointment
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What
insurance and risk management qualifications do you have?
-
How
much experience do you have in insuring sport and recreation
organisations?
-
In
what way are you going to add value to our business relationship?
i.e. what services (if any) are you going to provide in addition
to sourcing and arranging insurance cover? Services to look
for are those that will assist with administration and contribute
to a sustainable insurance program. Claims management,
including data analysis, and risk management education and advice
are examples of services that will lead to safer sport and
recreation.
-
Are
any risks placed under a binding facility? If so, will the
broker / client relationship be compromised by the binding
authority?
-
How
do you receive your remuneration? Is it commission only, fee
only, or commission and fee?
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b)
In regard to insurance protection to be
provided
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Which
insurance company is underwriting the policy? How
financially stable are they? What is their credit
rating? What is your experience with their claims
management?
-
What
cover is the policy providing? The cover to be provided must
be specific to sport and recreation activities. For example,
for public liability insurance unless the policy includes cover
for participation in sport it is inappropriate. Similarly it
should provide cross liability cover, first aid treatment risk
etc.
-
What
exclusions apply to the policy? Do any of the exclusions
pose problems in regard to the risks to be insured?
-
What
special conditions apply? For example, what obligations do I have
in the event of a claim? Do any of these conditions pose
problems?
-
Who
is covered under the policy? It is necessary to ensure that
the policy protects all within the organisation that it is
intended to insure e.g. the organisation as a legal entity, the players, officials,
coaches, committee members and volunteers as individuals. In
the case of liability insurance, will it provide protection if one
member of the organisation injures another member of the same
organisation?
-
When
does the policy provide cover? Does it cover all activities
of the organisation - does the policy define the activities
covered? What is the period of insurance?
-
Where
does the policy cover? Does cover apply to Australia and New
Zealand only? Does it cover all the jurisdictions in which
you have exposure?
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