Crowe Horwath has entered into a strategic partnership with Zurich Financial Services Australia to address underinsurance in the SME sector.
Partnership formed to address underinsurance
In a statement released today, Crowe Horwath said the partnership is designed to improve awareness among the SME sector that business expenses insurance is equally as important as other types of insurance.
Under the arrangement, small business clients will be advised on appropriate risk management strategies, including business expenses insurance, which will allow business operations to continue in the event of temporary injury or illness.
Maurice Thaung, head of insurance at Crowe Horwath, said many SMEs have not considered the material impact that sickness and injury could have on their business.
“We advise more than 200,000 SME clients and while most acknowledge the need for income protection, insuring fixed business expenses specifically is often overlooked.
“Without proper risk management strategies in place, many of these businesses would be forced to cease operating if the business owner were to suddenly fall ill or injure themselves for a prolonged period,” he said.
“Planning is an important part of any business and business expense cover could be the difference between a business being forced to close or remain running while the owner recovers. The partnership with Zurich will help us put the right strategies in place for our clients,” he said.
Zurich’s Head of Sales Strategies and Research - Life Risk, Andy Marshall, said many business owners are failing to understand the difference between other types of insurance and business expenses insurance, leaving their businesses vulnerable.
“Many people believe that workers compensation, business interruption insurance, or even an income protection policy will cover fixed business expenses if they are unable to work due to sickness or injury”.
“Personal income replacement cover is designed to cover up to 75 per cent of an individual’s taxable income from their business. If they have fixed business expenses and no business expenses cover, then they only have half the protection needed,” he said.