Source: (Photo by UN Women)
Business cards filled a big glass bowl at Hollard’s stand at Friday’s Financial Intermediaries Association of Southern Africa (FIA) and Cover Short Term Insurance Broking Summit in Sandton.
The cards were piled into the bowl so that three lucky brokers could win free training on how to use the Hollard LMI Business Interruption (BI) Calculator™.
The calculator, which Hollard Broker Markets (HBM) provides free to the entire broker market, crunches the numbers to come up with the correct figure for which a business should insure against business interruption.
The LMI Group is an Australian-owned risk management and risk advisement organisation that has partnered with Hollard Broker Markets to provide the BI Calculator™ to the South African broker industry for free.
Getting it right is important. If a business is underinsured an insurer will apply the condition of average, covering only a portion of loss due to business interruption, says Ryan Woolley, South African representative of the LMI Group.
On the other hand, if a business is over-insured its premiums will be higher than necessary. If you use the calculator you could save clients money, plus Hollard has waived the average for Hollard business clients if the calculator is used, meaning there will be no penalties for underinsurance.
LMI used the BI Calculator to survey the top three clients of each of HBM’s top 10 brokers’ and found that on average, these businesses were 30% underinsured, Woolley said.
It doesn’t take much for a business to be interrupted. A fire, a flood, disruption in the supply chain and a business could be out of commission for months.
“We can calculate the cover for everything from the mobile burger stand to large diamond mines and multinational manufacturers,” Woolley said.
(The winner of the #stibs2017 Hollard hamper is Muofhe Radzilani. Enjoy!)
Already 1 300 brokers have signed up to use the BI CalculatorTM, said Hollard my risk & more™’s, Annelize de Jong.
While those who win the FIA and Cover Summit competition will win free BI Calculator™ training at their place of work, there are a series of training sessions at various venues across South Africa throughout the year, says De Jong. They take about 60 to 90 minutes.
“Brokers are sometimes concerned about opening themselves to liability,” says De Jong. “You sell the insurance and when it comes to claims the client is underinsured. This helps the broker to give the right advice with confidence. You have the right tool, and a record of advice”
What could be better?
Applicants must complete a Use of Software Agreement form. Get it by e-mail from bicalculator@hollard.co.za or
Use of Software Agreement form
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