Business Insurance over the festive season

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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 Coversafe Insurance Brokers 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.

What is Volunteer Insurance?

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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.

Why do I need Professional Indemnity insurance?

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Mistakes can happen. If your business is found liable for negligence, the costs can be financially devastating. Not only could you be subject to an expensive lawsuit, but your business’s hard-earned reputation may be damaged as a result.

Professional Indemnity insurance is mandatory in some industries such as medicine, accounting, law, and financial advisers. However, even when not required by law, it is often a customer requirement that you have this cover in place. In fact, any business whether large or small, or individuals offering a service in exchange for a fee would still like to consider Professional Indemnity insurance.

Professional Indemnity Insurance covers claims made against your business by customers or other third parties alleging that in performing your professional services, your business has caused them a loss. While policies vary in the benefits they provide, professional indemnity can cover civil liability, inquiry costs, defence costs, fidelity cover, and advancement of costs and expenses.

  • Civil liability: Civil liability to a third party arising out of the conduct of their professional business
  • Inquiry costs: The cost of defending an inquiry by a regulatory body into the professional conduct of the insured
  • Defence costs: The costs involved in defending a claim triggered by the policy
  • Fidelity cover: Direct financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance.
  • Advancement of costs and expenses: Additional costs and expenses incurred during a claim

A claim against you for alleged unprofessional advice, failure to exercise required skill, or breach of professional duty, can be as costly as it is time-consuming. Legal action takes its toll on everyday business running, causing stress and requiring administration and time away from your core activities.

Professional Indemnity insurance can ensure that you have access to the required financial help and expertise to defend yourself; so you can focus on getting back to what you do best. Having adequate Professional Indemnity insurance cover could relieve you from the financial burden that legal costs and compensation represent. Without Professional Indemnity insurance, you would need to pay the costs for any claims made against you out of your own pocket.

Why is Management Liability insurance important for your business?

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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.

How Cyber Insurance can help protect your business

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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 Coversafe Insurance Brokers today to receive assistance on what insurance cover will suit your needs.

7 Types of Insurance Your Business Needs

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Running your own business is exciting. It can also be risky.

As a business owner, you’re exposed to a variety of business risks that could damage your business, cause you extensive financial problems or even sink your business altogether.

But if you’re protected with the right insurance, you can go about your work with the peace of mind that comes from knowing that no matter what gets thrown your way, you’ll be able to deal with it. It will free up time and energy for you to concentrate on what really matters: growing your business.

That’s where we come in. Our team will make the time to speak with you about the way your business works, and from there we’ll use our expertise to suggest the appropriate insurance policies to suit your individual situation. Your solution may require multiple insurance policies or a business pack may be more appropriate.

Before you speak with us, you might want to think about the types of business insurance you think you’ll need‑you can iron out the details with us later.

Here are 7 common types of business insurance to consider:

1. The Compulsory Policies
You might already know about some of the insurance policies that are compulsory in Australia, depending on the state in which you operate. If you hire workers, you will need workers compensation insurance. If you own a motor vehicle, you will need third party insurance. Some companies are required to hold public liability insurance. Talk to us about which of these might apply to you!

2. Business Vehicle & Fleet Insurance
Whether you’re a builder, tradesman, delivery company or a commercial business looking for vehicle insurance and have a number of vehicles in your business, you can have them covered under a single commercial fleet insurance policy. These vehicles can be registered in the name of a company, a partner or director of the company, allowing one policy to cover your whole business. Depending on the insurer, a fleet can be as small as two vehicles. We can help with individual business vehicle policies as well.

3. Property Insurance
Whether you own an office, rent a space or work from home, the space you work in and equipment stored there should be insured to protect against any problems with theft and accidents. Keep in mind that everyday home insurance policies often don’t allow for problems related to working from home, so it’s worth checking to see how any existing policy you hold applies to your business.

4. Product Liability
If you’re thinking about selling a product as part of your business, you will want to look at product liability insurance. This will protect your business in the event that your product causes damage, and should be tailored to the specific product you are looking to make.

5. Professional Liability
If you deliver a service, protecting yourself against negligence claims with professional liability insurance is a must. This type of claim can come up if you make a mistake or fail to deliver your professional services—this is especially important if there are professional guidelines you need to meet within your industry.

6. Technology/Cybercrime
The accidental damage or loss of your computers and data can be covered by technology insurance. Cybercrime policies should protect you from the costs of business disruptions and data security measures in the event you experience an attack.

7. Business Interruption
You can think of this as income protection insurance—but for your business. In the worst case scenario that your business operations are affected, your business could lose income and the ability to manufacture products. If your company relies on a specific physical location for business, like a factory or retail store, you will want to look at this type of insurance.

Business Pack Insurance

Business pack insurance covers several different types of insurance under one policy. This means less paperwork for you, and it’s often cheaper too. Keep in mind, though, that some business packs will not cover all risks and may have smaller sub limits.

As your insurance broker, we can look at your business risks, offer risk management strategies and help you understand the various insurance policies available to you.

To get started or to review your existing policies, contact us on 02 9553 0833 or info@coversafe.com.au.

Reviewing Your Business Insurance

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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 02 9553 0833 or click here to book in for a review of your business insurance.

Risky Business: Why Your Small Business Needs Ransomware Insurance

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Did you know that cyber-attacks went up by 700% last year, leaving many Australian businesses feeling unprepared? A cybersecurity threat can lead to lost data and money. When your system gets taken over by ransomware, your business is held, hostage.

A cyber insurance policy that covers you in the event of ransomware is a must for all businesses. Read on to learn about why your small business needs this type of tech insurance.

What Is Ransomware?

Malicious software that infects a computer with display messages that demand a fee needs to get paid is considered to be ransomware. Before your system can work again, the ransom must get paid.

This malware technique is a moneymaking scheme that gets installed through deceptive links. This could happen through phishing emails, calendar invitations, instant messages, or on a website. Once these links are clicked, they can encrypt files or lock the entire computer screen.

The ransomware attack rate in Australia is far from the global average. In fact, 67% of Australian organisations experienced this issue in the last 12 months.

Protecting Your Business

There are steps you can take to protect your business from an attack, but without ransomware insurance, there is still a high risk. Along with getting the proper business insurance, you can do the following:

  • Update Software Regularly
  • Never open unsolicited emails
  • Backup data regularly
  • Restrict software privileges within the workplace
  • Enable spam filters
  • Use firewalls to block suspicious content
  • Use strong passwords and multi-factor authentication
  • Scan all emails for threats

With how much technology has advanced, you can get hacked even when you are being safe. Insurance is the only sure way to protect your business.

Cyber Insurance

Cyber insurance can cover expenses and other financial losses due to a cyber event like malware attacks, cyber extortion, social engineering, or other invasive software.

A cyber policy typically covers three things, even though the policy may be broad. With a policy, you get covered for Liability (regulatory defence and privacy lawsuits), Internal Financial Loss (notification expenses, business interruption, extortion, data recovering, and crime/theft), and Emergency Incident Response (covering costs that were lost due to a cyber event).

Typically, a main coverage cyber policy includes:

  • Privacy Breach Notification & Crisis Management Costs
  • Privacy & Security Liability
  • Business Interruption – Loss of Profits & Operational Expenses
  • Data Recovery & System Damage
  • Regulatory Defence and Fine
  • Media Liability

Additionally, you can enjoy other coverages by paying an extra premium including:

  • Social Engineering & Funds Transfer Fraud
  • Payment Card Data Security Liability

Get Ransomware Insurance Now

Ransomware insurance is important for any business that uses a computer system. As small businesses are more susceptible, it is necessary to protect your business by following a few steps. However, the only way to ensure protection for your business is by adding ransomware insurance.
Anyone can fall victim to hackers, contact us today to get the insurance you must have for protection.

Is your business fire safe?

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Although bushfire season is here, this risk is only one of a host of different sources of fire. Arson is often the cause of fire and poor maintenance standards are another serious fire risk for businesses.

For instance, damaged or old electrical cabling is all too often the cause of a fire, especially in older buildings. Another problem, says Michael White, Steadfast’s broker technical manager, is incorrect storage of flammable materials.

“Too often, fires are caused when flammable materials are not safely stored, or they are stored with non-flammable materials. Expanded polystyrene or EPS is an especially serious fire risk,” he explains, adding “that’s a very common issue that comes up in commercial buildings, particularly in food processing industries.”

These panels are commonly used in areas that are refrigerated such as cool rooms. While refrigerators are not typically flammable, if a fire does occur in a cool room, EPS panels help the fire to spread. And they are very hard to extinguish once they are alight.

“Insurance policies respond in different ways when a fire occurs”

Read the full article at Steadfast Well Covered

Important note – the information provided here is general advice only and has been prepared without taking in account your objectives, financial situation or needs.

Business Insurance – what should every business consider?

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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.