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Insurance policies and the small print by Kevin Lindsay, Director Is there a magic bullet after all? Our good friend the frog The boiling frog metaphor is well known: put a live frog in boiling water and the frog immediately jumps out; put the frog in cool water that is gently heated and it will be boiled alive. Ignorance is not bliss Most risk affecting business† is insurable by insurance companies. Not all business risk can be insured. Many business insurance brokers, on whom we depend for advice don’t go beyond conventional insurance. Some payouts are even restricted or excluded by insurance policies. This does not mean insurance policies are a bad deal. Rather, that like any contractual arrangement, terms and conditions apply. Do we, the business owner unknowingly behave like the simmering frog when it comes to adequately insuring risk for our business? Are the gaps in our current risk financing unknown to us or insufficiently pressing for us to take action? Is the water not hot enough? Timing is everything The time to be educated as to an insurance policy’s short comings or solve an uninsured event is well before the loss occurs. A business needs a “virtual reality” boiling water experience to survive in the real world. Good options taken early can transform a traditional insurance purchase into an outstanding value added risk solution for your business. Alternative insurance advice There is a thriving alternative insurance market available to solve uninsurable risks, restricted payouts and insurance policy exclusions. All can be incorporated into one coherent insurance arrangement that is cost effective and tax efficient. “Most people spend more time & energy going around problems than in trying to solve them” Smart and successful business owners who emulate Henry Ford’s attitude analyse where their insurance starts and stops and seek to fill in the gaps. †Financial, assets, revenue, liabilities, personnel
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