Australia, C&L, Cranes & Lifting, Features, Insurance

Important insurance premiums advice from Team UAA

UAA team discusses insurance premiums.

Members of the UAA team take time to discuss issues relating to insurance premiums, claims and what clients can do to ensure they have the right levels of insurance.

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Keith Palmer has spent 44 years in the insurance industry and worked for UAA for 17 years.

In his experience, clients make mistakes with insurance policies because they don’t understand that the basis of a settlement is the market value of the equipment at the time of loss, (excluding the replacement cover benefits provided under the policy).

“Clients also make mistakes by not reviewing sums insured at renewal in consideration of market conditions, they sometimes also under insure to save money. Not setting the replacement sum insured on newer equipment in line with the policy benefits, is also an issue and not realising there are financial protection covers such as Loss of Revenue and increased Costs of Working which will assist the business financially should a piece of equipment be indemnified under the policy for damage,” said Keith.

He goes on to explain what clients can do to stop premiums rising.

“There are a number of relatively simple ways to assist in keeping a lid on premiums. These include the deployment of suitably qualified and licensed drivers to drive and operate machines.

The installation of dashcams in vehicles which may assist in defending any third-party claim for damages. Installing anti-theft security devices and GPS tracking units on machines and vehicles which may assist in prevention of theft claims.

“Depots where equipment is kept should have good security perimeter fencing and good quality gate locks. There should be good lighting and CCTV cameras with machine and vehicle keys either kept off site or locked in a strong security cabinet with premises fitted with a back to base alarm system. Clients could undertake toolbox meeting to discuss near miss accidents and put in place procedures to prevent the same from happening. Clients could review sums insured to ensure they are not over inflated and therefore paying over inflated premiums,” he said.

Kathy Leech spent 20 plus years in the Insurance and Financial sectors before joining UAA 10 months ago. She had this to say about common mistakes.

UAA team discusses insurance premiums.
Kathy Leech. Image: UAA.

“Clients may not fully consider the replacement cost of their equipment, including factors like depreciation or new technology. As a result, they may end up under-insuring their equipment. Equipment values can change over time due to factors such as inflation, market fluctuations or upgrades. Clients may forget to update their insurance coverage to reflect these changes,” she said.

Clients need to work closely with their insurance brokers confirms Kathy.

“Working closely with the insurance broker is essential. Overall, it is the broker who enables clients to make informed decisions about their insurance coverage, receive personalised advice and support and effectively manage their insurance needs to protect their business interests,” she said.

Martyn Shirley has been in insurance for close to 25 years and with UAA for 16 years. He had this to say. 

“Clients need to understand the importance of ensuring the equipment is insured for a fair market value. There have been instances where the insured has purchased an item of equipment at a fire sale price and only insured for what they have paid for it when the fair market value is substantially higher.

UAA team discusses insurance premiums.
Martyn Shirley. Image: UAA.

“It is also very important for clients to work closely with their broker, so the broker is well aware of the clients’ current activities. They need to ensure that they have the correct insurance in place for not only their equipment and property risks but also to ensure they are not putting themselves at risk contractually,” said Martyn.

Vivian Rivero has been in the insurance industry for six years and working with UAA for five. She has this to say about over or under insuring equipment and their approach to processing claims.

“We often see clients over-insuring their assets, which can lead to unnecessarily high premiums. To avoid this, it’s important that clients stay updated on the market value of their machines and other insured items. Ensuring that machinery and equipment are insured at the correct value can help reduce costs while still providing the necessary coverage,” said Vivian.

“When claims do occur, UAA adopts a proactive approach to claim management. When an incident is reported, we promptly assign an expert to assist the insured by overseeing the inspection and assessment of the damage. We aim to keep communication seamless and efficient, ensuring that the insured and their brokers are informed within 48 hours of the expert’s first contact to arrange inspections and manage repairs.

“We maintain regular follow-up every 15 days to track the progress of repairs and keep the insured and brokers updated about any potential delays. We work closely with assessors to ensure the appropriate professionals are assigned to repair insured equipment, leveraging our deep understanding of their areas of expertise to allocate resources effectively. Our close relationship with our panel of assessors allows us to select the best-suited experts for each claim, guaranteeing that their strengths align with the task at hand,” she said.

Luani Guglielmin has been with UAA for nine and a half years. She has some interesting insights on how to keep a cap on premiums and the importance of working with insurance brokers.

“Being tactful with claiming is important. I have seen many times clients lodge claims for each and every occurrence, sometimes resulting in tens of incidents a year – all low cost but have resulted in an overall large sum in claims which has affected the policies’ gross loss ratio dramatically, without the client understanding the impact as there were no large singular claims.

“Brokers are the bridging force between clients and their insurance. Working closely and transparently with a broker gives clients the best chance at a thorough risk analysis and comprehensive insurance cover,” she said.  

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