As a Consultative Area Manager from Epping Melbourne across to Somerton, up to Sunbury, as far as Bendigo and being available at the Seymour Alternative Farming Expo in 2016, my analogy is very simple, prudent and necessary.
Firstly I always ask my prospective clients …if their business has the necessity to invest in Public Liability insurance? What is the cost per year? Usually it is substantial.
In 13 years of association within this industry, whilst being a self-employed entity myself contracting to EC Credit Control the empathy is obvious, especially when it comes to professionalism in the field of knowledge and relaying the information required.
The answer is always “YES” … I then ask “WHY” do you have this type of insurance? Inevitably ..the answer is …”because I need it or their client demands it” or it’s “just in case” regardless of the answer given …I then ask “have you ever made a claim” …(in thirteen years, the answer is always “NO”) …so why have it?
Proceeding to continue the discussion (especially while the look of dismay is apparent) I then explain, can they tell me the first clause of that insurance policy …100% of the time, their answer is “NO”. Therefore they have paid large amounts of money year after year to be precautionary …”just in case” and yet, they don’t even know what specifically they are paying for, the expectation is “it’s there if I need it” … … … the daunting question is …do their really know, what is and what is not covered or why it is written in this way? Believe me, the insurance company will try anything and anyway they can “legally” to not pay out, especially if it’s not disclaimed within the policy (terms and conditions).
Think about it …”Terms and Conditions” are at the end of EVERY advertisement, TV, radio, and advertisements in some newspapers. I.e. they say “Terms and Conditions apply”.
I then conclude, that an insurance policy is made up of “rules, terms and conditions the insurance company want you to abide by”. This is exactly the same reasoning …it’s an acknowledgement of predetermined rules you as the Creditor needs to impose on your clients, the rules you want to “legally” enforce on your client/s if the need ever arises.