With Christmas fast approaching, it is often the busiest and most stressful time of the year for many businesses. While we rejoice for the increase in customers and sales, the increase in activity can mean extra risk for your business. Now is the time to check in to ensure you have enough financial protection to keep your business safe over the festive season.

Here are a few things you’d like to keep in check:

1. Increase in foot traffic
   During that time of year, one of the first things that comes to mind is crowds. Whether you run a retail store or a hospitality venue, you can expect an increase in foot traffic. The increase in visitors will also increase the likelihood of an incident or accident occurring. Risk in injury claims not only applies to customers and patrons. This also applies to employees seeing an increase in workload and financial stresses.
2. Increase in stock
   With the festive season, if you’re in retail or manufacturing, you’re likely carrying increased stock levels. Make sure you revise how much stock you are actually carrying and see if your current policy will cover that cost. In line with this, ensure that the extra goods you’re getting delivered have adequate cover.
3. Increased chance of burglary and shoplifting
   Over the Christmas break, whether you are operating with skeleton staff or are planning on closing completely, Christmas is prime time for burglary. We mentioned earlier how crowds increase the risk of injuries. Crowds also make it easier for shoplifters to steal merchandise without getting caught. The same goes for money, if you anticipate having extra cash on-site, make sure you’re protected.
4. Temporary staff and employee theft
   Many businesses hire temporary staff to help out during the busy season and if not properly trained in safety procedures, accidents can easily happen. Unfortunately with the increase in staff, employee theft of merchandise or money tends to go up too.

In order to ensure your business is protected over the holiday season, take the time to carry out an audit and update where necessary sums insured and liability limits. Get in touch with Sarina Insurance today and make certain that you have sufficient coverage to protect your business during the Christmas season.

Disclaimer: This article provides information rather than financial product or other advice. The content of this article does not take into account your objectives, financial situation, or needs. Please seek professional advice from your broker before acting on any information.

Whether you run a charity, a not-for-profit, or regular live events, volunteer insurance exists to protect both you and the volunteers that work for you. From music festival ticket collectors to ongoing charity work, volunteers are often the most important part of your organisation, and they need to be protected from accidents. Volunteer Insurance will cover them for personal accidents, and they and your organisation will be at a serious disadvantage if you do not have the right coverage in place. If you want to attract the right volunteers and keep your vital volunteers safe and confident, this specific insurance is going to be an essential requirement.

Who Needs It

Many types of organisations will need to have the right volunteer insurance policy in place.  Community groups, charities that provide healthcare for the elderly or disadvantaged, religious organisations, recreation clubs, and any charity or organisation that runs events, all make use of volunteers. These workers will not be covered by a standard business insurance policy, as they are distinctly different from salaried employees. Volunteer insurance policies protect the volunteer, but they also protect the organisation from public liability claims caused by the volunteers.

Did you know?

• There are an estimated one billion volunteer workers worldwide, and Australia has just under six million of them. (Volunteering Australia)
• The Australian economy receives approximately $290 billion from the work carried out by volunteers. (Pro Bono Australia)
• According to the 2020 census by the Australian Bureau of Statistics, volunteering rates were similar for males and females at 23% and 26%. Members of the population aged 40-54 were the largest group participating in voluntary work through an organisation. (Australian Bureau of Statistics)

What does it cover?

Employee insurance is very different from volunteer insurance, and you need to be aware of the protection that you are missing out on if your community group, non-profit, church, or charity makes use of volunteers. Volunteer insurance coverage means that you will get protection for:

Personal accidents: If a volunteer is injured while being involved in authorised volunteer activity, they will get protection and may receive weekly payments until they have recovered. This protects volunteers who are engaged in other work, as they may lose out on regular wages if they are injured while volunteering. It can even cover expenses caused by the accident and medical expenses.

Public liability: A well-tailored volunteer policy will also cover public liability. This type of policy will have a broader goal, and will offer protection for the organisation, any paid employees, and volunteers in cases of third-party personal injury or property damage. Not all volunteer policies will include public liability, so you need to confirm your coverage with your provider.

Voluntary Boards: If you have directors and board members that are categorised as volunteers, then you may want to include Professional Indemnity Liability. This will protect directors and officers from negligence by volunteers, defamation, slander, and sexual harassment. This is not usually included with a standard volunteer insurance policy, but may be a valuable addition if you make use of high-ranking professional volunteers.

Conflicts arising from the workplace have become increasingly common, in particular with current market conditions affected by the global pandemic. SMEs are subject to legal action which can be financially devastating for both the business and its executives. The need for Management Liability insurance has grown in importance.

Management liability insurance covers the costs of defending directors, managers, and employees against any claims that are the result of their actions or decisions. Having the appropriate policy allows the aforementioned stakeholders of a company to be protected against fines, penalty compensation, and defence costs. Managers and owners can also be held personally liable, which puts your personal assets at risk. Management liability insurance also extends to protecting your wealth and your family’s security, not just your company.

While policies do vary in the benefits they provide, the most common coverage includes employment practice liability, directors’ and officers’ liability, crime, corporate liability, statutory liability, and defence costs.

• Employment practice liability: Provides cover for alleged employment breaches, such as discrimination, harassment, bullying, failure to promote, breach of contract, retaliation, and wrongful termination.
• Directors’ and Officers’ liability: Protects your proprietary limited company’s past, present, and future directors, officers, and managers against claims of wrongful acts, such as misrepresentation or breach of duty (subject to business size).
• Crime: Provides protection for your business when there has been a direct financial loss such as theft of money, securities, and property. This can include employee fraud or dishonesty, third-party crime, electronic and computer crime, destruction and damage of money. However, note that not all criminal activity is covered.
• Corporate liability: Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as an investigation into the affairs of the company.
• Statutory liability: Covers the cost of defence, fines, and penalties under some statutes
• Defence costs: Covers your legal costs if your business ends up in court.

Even if claims made against you and your business aren’t founded, the legal costs of defending these claims can be financially crippling for businesses and individuals. In fact, 1 out of 4 private companies have reported experiencing a D&O loss in the last 3 years. On average, the reported loss from such claims amounted to $387K, with the maximum loss being $17M!

Unfortunately, when it comes to management liability your turnover or industry won’t matter much – you will have legal obligations to hold yourself accountable. If you’re a business owner or senior manager it’s your responsibility to ensure that your business meets them. Management liability insurance is designed to ensure that even the most prepared and well-run businesses are covered for any potential mishaps.

As our reliance on technology, the internet, and all things digital continues to grow, so does cyber risk. For businesses of all sizes and even government bodies, falling prey to cyber attacks is one of the key areas of concern every day. Evidently, every business with an online presence or electronic data records is potentially at risk. Cyber incidents can put a business in a financial crisis as well as threaten your intellectual property, put your customers’ confidential information in jeopardy, and cause significant damage to your brand. Let’s take a look at the common types of cyber threats and what you can do to protect your business.

1. Malicious Software (Malware)

Malware is the generic term encompassing viruses, spyware, trojans and worms. The aim is to gain access to private information such as credit card details and passwords. Malware can also spy on a user’s computer and take control of its functionalities. Malware can happen to anyone and at any time. Malware attacks don’t require advanced skills and can be “performed” anywhere in the world.

2. Scam Emails (Phishing)

Chances are you’ve probably already come across scam emails before as they are typically sent to thousands of people. Scammers have become increasingly good at mimicking language, branding, and logos to appear real. Unfortunately, phishing scams aren’t only limited to emails – they are now also prevalent through SMS, Instant Messaging, and across social media platforms. Be cautious of requests for money (urgent or overdue bills), suspicious attachments, or “click here to win” links and requests to check or confirm login details.

3. Ransomware

First off – Never pay a ransom! You are not guaranteed to regain access plus you could be susceptible to another attack (and be even more out of pocket!). Similar to phishing, ransomware attacks are typically carried out via a malicious but legitimate-looking email link or attachment. When the link is clicked on or the document downloaded, ransomware will encrypt a user’s files then demand a ransom to restore access – typically payable using cryptocurrency like Bitcoin. Ransomware creators prey on businesses of varying sizes but due to small businesses often being less security conscious, are less likely to implement cyber security measures.

So what can you do to minimise your risks?

1. Regular updates

Make sure that you’re turning on automatic updates. Updates are newer versions of software you’re utilising. They tend to run faster and more efficiently but even more important, they’ll tend to have higher security levels which in turn reduces your risks of cyber attacks

2. Automatic backups

A backup is a digital copy of your business’s most important documents. If your information is lost, stolen or destroyed; at least you’ll have a back up which means you’ll be back into business quicker and easier. You could also opt for an external drive and keeping it somewhere safe offsite if you prefer.

3. Multi-factor authentication

A security measure that requires two or more proofs of identity to grant you access – think of it as a double layer of security. It’s usually a combination of a pin and a physical possession. It could be a password, security question and a code sent to your mobile phone for example. More sophisticated and high value data could be protected by fingerprint and retina screening. While a hacker could get a hold of your PIN, it is unlikely that they’ll be able to obtain and use other proofs of identity.

While taking the above precautions will reduce your risks of cyber attacks, what happens if all fail? This is where having insurance is crucial!

As covered previously, with the rise of cyber attacks, data breaches are becoming the norm, and having adequate coverage to protect your business from risk is paramount. So what can cyber insurance cover?

Cyber insurance can help cover financial losses to your business (do take note of your excess limits), your customers, and other 3rd parties following a cyber security breach.

This might cover costs associated with:

• Loss of revenue due to interrupted business
• Hiring negotiators and potentially paying ransom in extreme cases
• Recovering or replacing your records or data
• Liability and loss of third party data
• Defense of legal claims
• Investigation by a government regulator
• Copyright infringement
• Misuse of intellectual property online
• Crisis management and monitoring
• Prevention of further attacks

Insurance policies vary and with a myriad of options out there, it is best to seek professional advice. Contact Sarina Insurance today to receive assistance on what insurance cover will suit your needs.

Insurance is something that most business owners set and forget. They simply don’t think about insurance unless they need to use it. Like your business, your insurance needs will change over time. It is a good idea to review your coverage periodically to make sure that you are not paying for insurance that you don’t need and, more importantly, that your assets have adequate protection.

When to review your business insurance

As your business changes so do your insurance needs. Here are a few specific situations where you should always review your insurance policy:

• Change in size – If your business has grown or shrunk dramatically your insurance needs will change as well. Factors like hiring more employees or adding locations will likely impact your coverage needs.
• Location change – When your company moves locations you may need more or less coverage than you currently carry simply because different locations carry different risk factors.
• New innovations or technology – if your company implements the latest and greatest innovations or technology it is a good idea to look at your coverage to ensure that these new innovations are covered.
• Annually – even if you haven’t experienced any major changes in the last year it is still recommended that you evaluate your business insurance annually. In doing so you can close any gaps that you might have missed previously, and you also have a chance to evaluate your premiums or shop around.

What does a business insurance review include?

During the business insurance review process, you and your insurance broker will sit down and evaluate a number of components related to your business. Most of this evaluation comes down to risks and how to mitigate risk with insurance.

• Personnel Review — You should review whether you have gained or lost employees or if you are allowing people to work from home.
• Equipment Review – if your business has purchased vehicles, computers, machinery, or any other piece of equipment after your last insurance review you may need to update your coverage.
• Technology Review – Living with the internet provides additional costs and risks for business owners. You will want to ensure that you have insurance protecting against hacking and reducing your liability in case of a breach of security.

Business insurance review during COVID

Think of how your business has changed during the COVID-19 pandemic. Maybe your employees now work exclusively from home, connecting via video chat rather than in person. To do this you probably have purchased technology to make this happen, items like microphones, laptops, and software packages. Some of these changes are permanent, others, are not.

Conducting a business insurance review for companies who are shifting to remote work can save money and ensure that they are covered for new liabilities.

For example, you may not need as much liability coverage on your building itself because your employees are not using the building. However, you may want to shift that coverage to cover your new technology. This ensures that your premiums are going towards covering parts of your business that need coverage and getting rid of unnecessary coverage in the process.

Wrapping up

Up-to-date insurance protects the business that you have worked so hard to build. Conducting a business insurance review annually or after any major changes in your business is a good way to save money on premiums and to ensure that your business is not leaving anything to chance.

Contact us on  07 4956 2243 or click here to book in for a review of your business insurance.