Sharon Paterson, CEO of Infiniti Insurance

Tips to help clients choose the right insurance cover

While many people believe that insurance is expensive, there’s also a common misconception that it’s only necessary for the wealthy or those with high-value assets. In reality, insurance serves as a vital safety net for everyone. It provides financial security and protects what matters most especially the things you cannot afford to replace in the event of a loss.

“We all need some form of insurance to protect ourselves and our families from financial distress due to unexpected losses. Insurance is an essential tool for anyone seeking financial security and peace of mind, regardless of their income level or social status,” says Sharon Paterson, CEO of Infiniti Insurance.

“Insurance is a risk management tool that we must use to secure our financial future. Unfortunately, some people think that insurance only matters during catastrophic events such as storms or floods, when in fact it can help cover a wide range of losses,” she adds.

Paterson warns that many policyholders may not know whether they are adequately covered for specific events. “For example, if your home burns down, are your insurance policies sufficient to rebuild and refurnish it? Many clients don’t fully understand the policy wording or how inflation can affect the value of their assets and coverage over time. This only becomes apparent when they file a claim.”

As insurers, we rely on brokers to educate clients on how to properly value their assets and ensure that their coverage aligns with their evolving needs. Being underinsured can result in substantial financial loss and dissatisfaction with both the broker and the insurer.

She emphasises the importance of clients consulting their brokers whenever they take out or update their insurance policies. This ensures they are not including unnecessary items in their cover while leaving out their most valuable assets.

Tips to help clients choose the right insurance cover:

• Understand your insurance needs before selecting a policy. Prioritise which assets you need to protect.
• Choose an insurer with a solid reputation and a proven commitment to customer satisfaction.
• Read and understand the policy wording, including key terms such as limits, exclusions, deductibles, and any additional fees.
• Don’t choose a policy based solely on price. While a cheaper premium may be tempting, it could leave you inadequately insured.
• Find a balance between affordability and adequate cover. A slightly higher premium often offers more comprehensive protection when you need it most.

“Brokers have the technical knowledge to advise clients on managing risk exposure and investing in long-term preventative measures to mitigate potential losses,” says Paterson.

She stresses the importance of clients consulting with their brokers to explore the wide variety of insurance products available. A standard policy may not always provide sufficient coverage, and clients could face serious consequences if their policy is not correctly structured.

“At renewal time, the broker’s role becomes even more critical. They help clients assess their risk exposure, take steps to mitigate it, and make sure their cover is up to date. Brokers provide valuable guidance and help clients adjust their cover as new risks emerge,” Paterson concludes.