Business Insurance – what should every business consider?

/in /by

Running a business has a number of responsibilities and associated risks whether you are a sole trader or global enterprise. Business insurance can protect you against the financial damage of business risks giving you peace of mind to concentrate on growing your business.

In Australia, some insurances are compulsory – if you hire employees you must have workers compensation in accordance with each state regulations. Further to this some companies are required to have Public Liability Insurance to cover for third party death or injury and if you own a motor vehicle Third Party Insurance is also compulsory.

In addition to the compulsory insurances there is no ‘one size fits all’ solution. Insurance companies will often package different types of insurance together which is more economical than separate policies. You will want to protect aspects of your business such as:

  • Business income
  • Business assets
  • Customers
  • Employees
  • Business owners

As your broker, we have the expertise and will take the time to understand your business and source the most suitable insurance for your needs.

Some of the key insurance products we’ll look at include

Technology and Cybercrime Insurance
Technology Insurance covers accidental damage or loss to computers, electronic equipment and data. Cyber Liability Insurance protects your business against the cost of keeping your data secure and business disruption in the event of cybercrime.

Property Insurance
Property insurance covers damage or loss to buildings, contents and stock caused by insured events and accidental damage.

Business Vehicle Insurance
In addition to compulsory third party insurance we recommended that you consider business vehicle insurance to protect your company vehicles in the event of damage, theft or collisions.

Product Liability Insurance
Product Liability Insurance is a must for any business that manufactures its own products. Even with excellent manufacturing practice and quality control you cannot completely rule out legal action for a faulty product.

Directors and Officers Insurance
Managers are accountable for their actions and also the outcome of their decisions and unfortunately it’s easy to make a wrong decision in a high-pressure situation. Even with sound knowledge of the market, compliance regulations and risk management an unintentional mistake can be very costly which is where D&O Coverage offers protection. Risks that can be covered include employment practice, HR issues, reporting errors, unauthorised decisions and breaching compliance regulations or laws.

Contact us for a business risk analysis and customised insurance package.

Lloyd’s of London in massive coronavirus claims prediction

/in /by

If you needed proof of the pelting that the insurance industry has taken at the hands of the coronavirus, then look no further than Lloyd’s of London.

It is predicting payouts of up to £5 billion (around AU$8.9 billion) after reporting a £400 million (around AU$714 million) loss in the first half of the year, compared to a £2.3 billion profit in the same period in 2019.

According to chief executive John Neal, the first half of the year has been “exceptionally challenging” for the organisation – with insurers hit across areas including trade credit, event cancellation, business interruption, travel and more.

To make matters even more challenging for the insurance market, its reinsurance covers only around £2 billion of the amount it expects to encounter in claims.

“The pandemic has inflicted catastrophic societal and economic damage calling for unparalleled measures to stifle the spread of the virus, and to get businesses and economies back on their feet,” said Neal.

Speaking on the Today programme on the BBC, Neal pointed to talks with the government.

“It’s a real issue, isn’t it, when you look at systemic and complex risk, whether it’s business interruption, or cyber, or climate,” he said.

“And that’s why we’ve been very engaged with government to say: ‘Look, [this is] what can we do as an industry, and what can you do, to ensure that businesses and people are better protected when these events come along’.”

“The reality is, and it’s unfortunate, the vast majority of policies do not provide cover for this type of loss, and we’re as bothered by that as anything, to try and make sure that next time around, whatever the event, customers have had the opportunity to buy the right products and services,” he added.

This is an Insurance Business Australia article.