Insurance: one size does not fit all

"Businesses are unique to themselves," says Elders Insurance agent James Bormann of Murray Bridge, SA.

Speaking from over a decade's experience with Elders Insurance, Mr Bormann is well placed to know how true this statement is.

He has a particular passion for the rural industry, though his Murray Bridge office also deals regularly with small to medium-sized businesses and personal insurance clients.

Mr Bormann says that when he first sits down with farm and business owners, it's to determine what policies are best for their situation.

That means finding out which assets would result in economic loss in the event of an incident and to what value they need to be insured.

Each farm and business will have a different set of concerns and requirements and these will inform what shape the insurance cover takes.

Once those policies are in place however, Mr Bormann says business owners need to take a proactive stance toward making sure their covers continue to serve them well.

He says that all businesses should have a good look at their policy renewal at least once a year.

This is particularly the case with business and farm property insurance, where Mr Bormann says there is a tendency of underinsurance.

Providing adequate cover for a structure doesn't mean insuring it for its market value, but rather for the amount it would cost to rebuild in the event of its loss.

The Elders Insurance agent notes that many factors can have an effect on the cost to rebuild a structure, making it important to evaluate property sums-insured each year.

"Once upon a time it used to be the materials that cost the most - now it's the cost of labour," he explains.

For Mr Bormann, ensuring his clients walk away with a practical understanding of what their policies insure them for means they are in a better position to evaluate their suitability when it comes time to renew.