The debate about whether domestic insurance policies should cover home-based businesses lacks an understanding of how the insurance market operates, says William Legge, General Manager of the Underwriting Agencies Council.
“Traditional domestic home insurance policies were not designed to cover businesses operating from home because the risk assessment is different,” Mr Legge said.
“Some insurers may offer a policy extension, which will likely be individually risk rated, depending on the type of business the insured operates and many other factors, for example, whether customers or delivery drivers come to the home premises.”
Mr Legge said insureds seeking bespoke products, like coverage for specific home-based businesses, should access the underwriting agencies market via an insurance broker.
Members of the Underwriting Agencies Council (UAC) are niche, specialist insurance agencies who predominantly conduct business through brokers, writing cover on behalf of their principals, many of which are Lloyd’s syndicates.
“Using an insurance broker means you can access the full gamut of product availability and there are many agencies that offer specific insurance products for home-business operators,” Mr Legge said.
The UAC website enables brokers to search for hundreds of product specialisations offered by UAC members, including home-based businesses.
Mr Legge said agencies are creative, innovative and entrepreneurial, giving brokers, and sometimes direct clients, options that are difficult to obtain in the traditional insurance market.
The Underwriting Agencies Council (UAC) is the peak body for Australian underwriting agencies, who write annual GWP of more than $7.5bn. UAC serves members’ interests through professional development events; broker expos to showcase members’ specialist products; sector-specific marketing campaigns; and advocacy with government and industry bodies. UAC has more than 120 agency members, supported by 64 business service members.