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Ceebeks Founder and Director Chris is a man on a mission and a man with a vision. An internationally renowned accountant, he is regularly featured in a range of publications and often called on as a guest speaker at conferences and events around the country.

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Over a third of small to medium enterprises (SMEs) do not have a succession plan in place and almost half say their business would only be able to operate for up to a year if they were unable to work, according to a report in 2018 by life insurance company, MetLife Australia.
The MetLife Adviser-Client Relationship Report 2018 examined attitudes to purchasing life insurance through a financial adviser, surveying 200 SMEs with up to 20 employees as well as sole traders (1,000).

Positively, 63% of SMEs surveyed have Income Protection insurance, while 58% have Death cover and 55% are insured for Total and Permanent Disablement. However, a much lower number have Key Person (35%), Trauma (30%) and Buy/Sell insurance (27%), leaving their businesses vulnerable.

Generally, SMEs are more engaged with their insurance than consumers, but there are traditionally signs that underinsurance is still a worrying issue. Cashflow, meeting payroll (including super) and the ever present GST and tax obligations are genuine reasons why many SMEs are reluctant to take on another business overhead.

SMEs are the lifeblood of the Australian economy, but the 2018 MetLife Adviser-Client Relationship Report results show that many are leaving themselves exposed to financial hardship or even business failure if they experienced any business interruption.

We know from our 30 year experience that regular reviews with a financial adviser can help SMEs to be better prepared. The statistics show that 80% of SMEs have a better understanding of insurance as a result of seeing an adviser, while over half of SMEs who have had an annual review with an adviser altered their insurances as a result. Furthermore, a third of SMEs are ‘somewhat likely’ or ‘very likely’ to purchase cover they don’t currently have in the next two years.

Creating awareness of the need and providing education around the importance of business insurance is where an experienced financial advisor can add significant value to SMEs.

Small businesses can often be misunderstood by the insurance industry as they have unique needs and there shouldn’t be a one-size-fits-all approach. Having a trusted adviser, like Ceebeks Financial Solutions ‘in their corner’, who can provide education on the right type and structure of insurance cover related to their business can make a big difference to them.

Overall, the study found that SMEs have higher expectations than consumers when it comes to service from their adviser, particularly given many are reviewing their own business on a regular basis. Over 40% have intentionally stopped using an adviser, citing price, poor advice, lack of contact, difficulty dealing with their adviser, and a lack of value for money, compared to a 25% of consumers. While it’s clear from the research that SME’s see the value of advice, if they aren’t happy about their advice experience, they aren’t afraid to make a change.

However, SMEs are also a loyal group when they find the right adviser. A high number (40%) of SMEs have been with their adviser for five or more years, with many likely to recommend their adviser due to their trustworthiness, honesty, genuineness, effective advice, experience, accessibility and overall responsiveness and communications.

Small business owners have one trait in common - they are all time-poor ...

… and they’re looking to their adviser to show them genuine care and give them value-added services such as home / office visits (including after hours), negotiating with insurers on their behalf, regularly reviewing their cover and putting in regular calls and emails to ‘check in’.

Providing excellent, personalised service makes this group more loyal and helps them get real value from their adviser. Running a successful business takes time, money and lots of hard work. Insuring your business should be top of your mind when you’re thinking about what might happen if you were totally and permanently disabled and couldn’t work. No one wants to think about the what ifs but if you are a partner in a successful business, the ‘what ifs’ can’t be ignored. Perhaps you started your business with a group of friends and built your dream together?

Perhaps you bought into the business, or inherited it from your family? Whatever your situation, the relationship you have with the key people in your business probably extends beyond your work. You’ve shared the highs and lows of building and running a business as well as your personal ups and downs. You’ve probably shared social occasions and know each other’s spouse and children. In many ways, your lives are probably entwined.
· What if something happened to you or another partner in your business?

· What would happen to your business or family assets if you were to die or become permanently disabled?

· If you died, would your business partners be able to pay out your family/estate for your share of the business?

· Would your estate be liable for your business guarantees if you were to die or become permanently disabled?

· What would happen to your family if you were no longer bringing in an income?

· How would the business survive the loss of one of the partners?

Now is the time to discuss the ‘what ifs’. It’s also the time to put plans in place to decide what would happen if you or another business partner suddenly left the business or who would take over and how the business would be valued.

Business Insurance is not just about securing the future of your business… it’s also about securing the future of those you care about and who rely on you for financial support.

There’s no ‘one-size-fits-all’ when it comes to insuring a business, just as there are no two businesses that are exactly the same. Your business insurance needs will vary depending on a variety of factors, such as, the industry you operate in, your trade, and the type of business you run. It will also be influenced by the size and location of your business and your appetite for risk. A tradie will face different challenges and risks, to say, a real estate agent, coffee shop, or an engineering firm. Just as a mobile or home-based hairdresser will have varying needs to those of a salon owner who has a shop front.

However, one thing’s for certain, and that is, finding the right insurance is an essential part of managing the risks involved in operating your business. And let’s face it – all businesses confront an element of risk on a daily basis, regardless of their size or the industry they are in.

It’s also important to note that some types of insurance are compulsory for many kinds of businesses, whether it’s a legislative requirement, an obligation as a member of a professional board or association or required by a contract you enter into with a landlord or a customer.

Fortunately, these days there are a variety of policy options to choose from and Business Insurance policies can be tailored to suit your individual business needs. A good adviser will consider insuring your assets, your revenue, and your liabilities.

SMEs need to find the right adviser, one they can trust, that understands their needs and helps them future proof their business through effective plans.

Ceebeks Financial Solutions can help them do exactly this!