The current business climate is seeing rises in most business insurances - partly due, in some brokers' eyes, to the September 11 attacks (in which some insurers took a beating) and also to the general increase in litigation within first world countries.

Having spoken recently with an insurance broker, it became apparent that there could be a distinct advantage for graphic designers who are in the market for business insurances of various kinds, especially Professional Indemnity, to form a buying group.

It could be that savings upwards of 25%, based on current (post September 11) premiums, are on the table.

The main advantages come from numbers and by illustrating a high level of professional outlook on business practice, the latter being the reason for organising this through AGDA.

The deal would (could) work something like this:

• The policies for the group would be tendered, by a broker, to a range of insurers on an annual basis, with premiums payable on the same date for all. Newcomers could catch up via pro-rata payments.

• Members of the buying group would have to be AGDA members, with companies holding more than one director (or principal) requiring one of them to be a member.

• The deals would ideally be suited to smaller companies, ranging from one to six employees. But this would not prevent larger organisations from looking at it as well.

• The insurances covered could include, Professional Indemnity, Public Liabitity, Employers Liability (as well as Directors and Officers). I assume covers for property, fire etc. could also be considered.

• Individuals could choose their scope and depth of cover to suit.

• Premiums would be calculated individually according to previous point 5. Variables such as turnover, payout levels, excesses, staff numbers etc. all have an impact on individual premium levels.

• A return commission to AGDA would automatically be a part of the deal. Apparently this is standard with associations such as ours.

• Since this arrangement is about organising a buying group, the service would not be AGDA-branded or endorsed, nor would any specific insurer be endorsed, nor would AGDA be liable for any insurer decisions. The final decision here, however, would need to be subject to the insurers contract and AGDA's own legal advice.

I would hope to have this set in place by the change of financial year.

So if you are interested, send an email to our National Secretariat at secretariat@agda.asn.au for consideration.

For companies that already hold Professional Indemnity insurance, answering the following questions and having our secretariat submit them (in confidence) to the broker will help us benchmark various offers:

1. Current Limit of Indemnity (Sum Insured) carried
2. Current Insurer and due date
3. Current policy Excess
4. Current Annual Fee (Estimated) Income
5. Current Premium

Cheers

John Frostell
AGDA National President