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.

La Niña likelihood increases

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It is that time of the year again, La Niña event is imminent. La Niña brings an increase in rainfall which in turn increases the risks of flooding and water damage to properties. The bad news is that the chances of a flood-inducing La Niña system forming this year have risen, yet again.

According to the Bureau of Meteorology, the recent cooling in the tropical Pacific Ocean means there is a 50% chance of a La Niña forming. The worse is, Australians are not prepared. Close to half of the Australian population don’t know what La Niña is while 51% don’t secure doors, windows, or roof coverings when a storm is coming.

Now is the best time to ensure you’ve taken all your precautions. Check your building for any cavities where water could seep in and make sure your pipes aren’t clogged. Get a roofing specialist to inspect your roofs and give their tick of approval on them being as watertight as can be. You’ll like to pay particular attention if your building was built in the 1980s or prior as it is highly likely that that the roof is made of asbestos. Roofs made of asbestos tend to be very old, brittle, and prone to damage. The claim could cost you a significant amount if you were to replace the whole roof. This would be problematic as your premium may not cover you for the entire amount of the claim; which means you’ll be out of pocket.

Have a first aid kit, clean water, and a torch handy, as well as a list of emergency numbers you can contact. When it comes to insurance, ensure that the sum insured is adequate in the event the building is damaged by a major storm. Ensure that your policy covers flood damage too. Depending on where your business is located, premiums covering flood damage can be expensive and in some areas, not available at all. For example, if your area has been subject to flooding and excessive rainfall multiple times in the past, chances are that your insurance premiums will be high. Some insurance providers may even entirely refuse to cover your business for storms and flood damage.

Take a closer look at your current policy, whether the area you’re in has a history of floods and any areas water could potentially seep in in case of heavy rainfall. If you’re unsure as to what your excess limits are, reach out to your broker.

** 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.

Social media risks for your business

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Social media is everywhere. It’s unavoidable, it’s powerful, and it’s here to stay.

That being said, social media does come with a set of risks. According to the latest EY Global Information Security Survey, 59% of organisations had a “material or significant incident” in the past 12 months. In fact, social media risk management is a completely different domain of expertise.

It is also crucial to recognise that with social media, messages can spread far and wide very quickly! While it is one of the reasons why social media marketing is so praised, when defamation, slander, and negative publicity are involved, it can cause serious damage to the reputation of a business. A negative brand image will have a lasting impact on your business until resolved effectively with social media risk management techniques.

Basic security practices and mitigation strategies can be adopted in order to manage those risks:

1.0 Social media policies and guidelines

Have a clear process as to who is responsible for posting on social media. Have guidelines as to what messages are appropriate to feature on social media and tone/voice to be used. This process should also provide guidance on how often social media is monitored and responded to and especially how to respond to negative comments.

2.0 Employee training

Human error accounts for 20% of cyber-attacks according to EY Global Information Security. In today’s busy world, it is all too easy for an employee to accidentally expose the company to threats online. Ensuring that your employees are involved in relevant training involving social media is key. Have training sessions around how to identify and avoid scams, attacks, and other security threats; who to notify, and how to respond if a social media security concern arises.

3.0 Professional use and personal use of social media

Always be wary of the language you use on social media. When deciding on what social channels to use for your business take into account the needs of the organisation, not the owner’s/manager’s personal views of social media. Also, remember that nothing on social media is really private. It is important to take the time to think through a message before sharing it on social media.

Regardless of all precautionary measures, insurance is always recommended as an extra layer of protection. Insurance has a role to play, but it is important to understand how cover works in relation to social media risks because the protection insurance provides has limitations.

So, what can insurance cover?

If you have been accused of defamation as a result of comments you have made on social media in your capacity working for a business, cover may be available within public and product liability insurance, professional indemnity insurance, as well as certain other policies.

Public and product liability, as well as professional indemnity insurance, may also help cover legal costs required in defending yourself in court; in the instance where you’ve been a victim of keyboard warriors on social media. That being said, policies are unlikely to cover for threats such as someone “simply” trolling your business, but rather provide cover for the loss of a major customer contract. For this to happen, the trolling or event would likely need to be defined as a crisis event.

The digital world isn’t 100% secure and even with the best antivirus software and firewalls, cyber threat is real. With the numerous social media accounts available and the use of 3rd party apps for creating content and scheduling posts, hackers have more avenues to crack through to a business; increasing risks of breaches in data records, intellectual property, and ransomware. In this case, having cyber insurance could be invaluable.

Social media offers a world of opportunities but just like any other channel, social media is not risk-free. The risks can be mitigated with effective policies and practices. Of course, as much as precautionary measures can be taken, you should consider insurance to cover your business if all fails. Social media marketing and risk management should be taken seriously and it is essential for growing businesses to ensure they are both given equal attention.

Contact us today to receive assistance on how insurance can protect you against social media risks.

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

The importance of keeping your details up-to-date

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It’s a fast moving world, especially at the moment. Even though there’s so much going on, it’s essential to update your insurance broker any time your circumstances change to help ensure the cover you have in place is still appropriate for your enterprise.

A popular business pivot many beer and spirit firms have undertaken in recent months is a great example of what can go wrong if firms don’t tell their broker when their operations change.

During the early stages of the corona virus pandemic, many of these firms switched from making alcohol to hand sanitiser, as the need for their regular products dropped as bars and pubs closed and as demand for sanitiser sky rocketed.This was a great commercial solution for these firms, and a wonderful way to keep staff employed.

But it’s important these enterprising enterprises let their insurers know how their operations had changed, because their risks also shifted alongside their product lines.

Let’s say, for instance, the hand sanitiser damaged people’s skin and caused painful rashes, and the affected customers or businesses that had purchased the product made a claim against the business. The insurer could deny the claim if the business had not informed their insurer through their broker they were changing their product line, leaving the business liable to pay any damages from their own earnings.

“It’s important to tell your broker any time you circumstances change, who can in turn let your insurer know,” says John Clark, Steadfast’s broker support manager.“This is because policyholders should disclose anything that may affect the insurer’s decision to cover the business.

These include things like your business premises becoming unoccupied and reduced security,” he adds.There are many other situations organisations are facing at the moment they should also let their broker know about.“Many businesses like hotels and retailers may have seen their stock levels fall during the lockdown.

Read the full article on Steadfast Well Covered.

Managing cyber risks while staff work from home

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Heightened cyber risks have emerged as a serious issue, given most businesses now have many staff working from home.

So it’s important to put in place policies and procedures to ensure data is secure no matter where staff are located. Helping staff to recognise and avoid risky behaviours is also part of a great cyber safe culture. Here we explore some of the essential steps businesses need to take to reduce the risk of cyber criminals compromising the network.

Make sure staff are updating security alerts

“The challenge is to ensure cyber security is top of mind for employees,” says Fernando Serto, head of security technology and strategy at Akamai Technologies.

“But it can be tricky to enforce behaviour when people work at home, especially when it comes to ensuring employees are uploading security updates,” he adds. One way to combat this is to put controls in place so staff can’t access work applications on their devices until security updates have been installed.

“This will encourage users to keep up with updates and patch cycles,” Serto says. This is also effective no matter if staff are using devices provided by the business or their own tablets, laptops and smart phones.

Educate staff about cyber safe practices

Phishing is a huge challenge for all businesses. These are fake communications sent by criminals that look messages from a real business. The fraudsters attempt to get staff to click on links, which gives offenders access to the business’ IT system.

It’s essential to teach staff how to recognise a phishing email, which is challenging given criminals are becoming increasingly sophisticated in their approach.

“We’ve seen phishing campaigns that use social media and other methods to try to lure individuals to click on a malicious link to compromise a work device,” says Serto. So it’s important to create an open, honest and transparent communication channel between staff and the IT security team.

This enables the business to explain to teams why being phishing-aware is important and to let them know when new scams emerge.

Ensure staff are safe when they use video conferencing

The use of video conferencing tools has skyrocketed this year, greatly assisting firms to communicate when staff are no longer office-based. But hackers can easily compromise these tools and use them to enter a firm’s network.

So it’s important to implement proper protocols to reduce this risk.“There are lots of free versions of these tools. But an enterprise-grade solution will make a significant security difference,” says Mick McCluney, technical director of cyber security firm Trend Micro.

Free services run a heightened risk of malware being installed in users’ systems. Using an enterprise-grade version substantially minimises this risk.“Outsiders guessing meeting IDs and bombing meetings is becoming an issue.

So take care to configure meetings so they are secure. Using passwords where possible also helps ensure only authenticated users are in the meeting,” McCluney adds.

Concerns have been raised by the FBI and others about IT security when using Zoom.

Hamish Blake the comedian has crashed Zoom meetings. Cyber insurance is another line of defence against cyber attacks by external parties. But it should be seen as a last line of defence. It’s also essential for firms to have the right security protocols in place to reduce the risk of compromised systems while so many people are working from home.

If the business does detect a cyber breach, use it as opportunity to educate staff and encourage them to be an active part of the organisation’s cyber security strategy. See a breach as a valuable lesson and a way of generating insights about which other controls should be in place to avoid a similar situation down the track. That’s the best way to ensure the business, its data and systems are properly protected at all times.

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

This is a Steadfast Well Covered Article.

Protecting Your Commercial Assets In Business

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For business owners in Australia, insurance needs to be a priority. With so many potential threats to a business, having the right insurance coverage can keep your business and your personal finances significantly safer. The challenge for Australian entrepreneurs is that there are so many different types of insurance policies available that it can often get very confusing very quickly. From the insurance that you’re required to have by law, to the coverage that will simply give you peace of mind in a wide variety of sectors, here is a brief guide to protecting the commercial assets of your business.

Legally Required Insurance

There are a variety of insurance types that business owners are required to have. Although employees are not legally considered as a commercial asset, you will certainly struggle to run a business without them. All businesses that employ even a single person must have Employers Liability Insurance in place. However, if you have business premises, that is an asset, and that means you need to have Buildings Insurance. This will protect you from damage to the building, whether it’s from wilful vandalism or accidental fire or flooding. You may also need to have:

  • Vehicle Insurance: If you use a company vehicle to deliver goods or for your employees to use, then they need to be insured.
  • Industry Specifics: Some industries are required by law to have specifically tailored policies in place. Make sure that you are aware of the specific needs of your business sector so that you aren’t caught out.

Non-required Insurance Types

There are additional types of insurance that may not be required by law but can be very useful when it comes to keeping your business safer. Depending on the sector that you trade in or the size and structure of your business, here are some asset protection insurance types that you should consider:

  • Professional Indemnity: This should be a priority for freelancers, consultants, and contractors. Although it is not a requirement, it can keep you much safer against claims made against you or your business in relation to professional negligence.
  • D&O Insurance: If your business has directors and/or officers then it’s worth getting the insurance that can protect them individually from legal liability.
  • Product Liability: If your business sells, makes, or even simply repairs a tangible product then it’s a smart move to invest in product liability cover. If a customer gets injured using a faulty product then you can be vulnerable to a substantial fine that could cost you your business.

Manufacturing businesses might also want to look at a pollution risk policy. If there is even the slightest risk that your manufacturing locations will produce any kind of waste then a pollution risk policy will be a huge help if you are forced to pay for the cleanup of any accidental pollution or any claims made against your business.

Additional Options

No matter what kind of industry your business is in, you might also want to secure your assets by adding these additional policy types to your overall coverage:

  • Intellectual Property Insurance: Protect your intangible assets, including patents, logos, or designs.
  • Business Interruption Insurance: If you are forced to close your business temporarily due to outside disruption (flooding or fire) then this can prevent the threat of closure due to a lack of revenue stream. This is sometimes referred to as Business Income Protection Insurance.
  • Glass and Sign Cover: Often not included in Buildings Insurance, this can keep your frontage much safer.

You might also look at Goods in Transit insurance if your business involves a lot of shipping, or Money Insurance if you have large amounts of currency on your premises.

Entrepreneurs and business owners should always have a very clear picture of their insurance needs. From the policies that are legally required to the ones that are simply designed to keep your business safer, having the right coverage can ease the stress of business management. Make sure that your business is more protected, and the future of your company will be much more secure.

Bushfires and business interruption

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Some insurers have already started to pay claims to bushfire-affected businesses on the NSW South Coast, as their business interruption insurance policy provides for weekly payments.

Having this support has been important for affected firms to stay in business. It allows them to maintain their cash flow and pay regular outgoings such as rent and wages.

Under a business interruption policy, a business that suffers an insurable event can claim for loss of income. Policyholders in the best position have been those that have been able to quickly provide their financial information to support their claim.

Christopher Connolly, underwriting manager with underwriting agency Interruption Underwriting Agencies (IUA), explains.“The fires happened on New Year’s Eve. The first business day was Thursday 2 January.

We started to pay claims the following Friday 10 January, which was within 7 business days” he says.

Affected businesses such as restaurants, shops and other local stores have been able to claim under a prevention of access clause in their policy.

The clause is triggered because the authorities issued directives that closed the roads. This meant the annual influx of tourists the South Coast receives could not reach the businesses in the towns affected by the road closures.

Some roads remained closed at the time of writing.

This article from the Steadfast online magazine Well Covered, discusses risks of underinsurance, how to avoid mistakes and ensure homeowners have the right insurance in place, particularly in fire-prone areas.

Read the full article here

Bushfire safe: making sure your home isn’t underinsured

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With bushfires burning around the country, it’s important for homeowners in fire-prone areas to take steps to ensure they have the right insurance in place.

This article from the Steadfast online magazine Well Covered, discusses risks of underinsurance, how to avoid mistakes and ensure homeowners have the right insurance in place, particularly in fire-prone areas.

Read the full article here

Income Protection for Business Owners

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All business owners have a lot of challenges, but many fail to contemplate what might happen if their business is suddenly unable to trade. From illness or injury to a fire at your supplier’s warehouse, there are many ways that your profit generation could be suddenly halted. While there are many rewards to being a business owner, the threat of the unexpected should not be overlooked. One of the most effective ways of keeping yourself and your business safe is through Business Income Protection Insurance. While many people have personal income protection, income protection for business owners is a much more focused form of coverage that could keep you much more safeguarded against the unexpected.

What is Business Income Protection?

Disruption to your workflow can be caused by many uncontrollable events. Business Income Insurance policies are intended to cover your living and working costs while you are unable to trade. Whether you are forced to close your business due to long-term disruption or need to cease trading temporarily, Business Income Protection can make sure that when you are able to reopen the doors you will be in a much more secure position. When work is disrupted, business owners still have bills to pay, staff wages, and supplier costs that need to be maintained. And that can be very challenging if you are not generating any profits.

Why you need it

If there was any damage caused to your business premises, such as a fire or a flood, would your current finances keep you afloat? Any kind of damage, disaster, or business interruption can have a dramatic effect on a business. Without the reliability of ongoing profits, many business owners simply lack the resources needed to stay financially secure during unexpected breaks in trading. Business Income Insurance is intended to keep you financially stable as you tackle disruption, and can be a useful resource when you’re trying to get your business back up and running to pre-disaster levels.

Did you know?

Income Protection Insurance can cover individuals or businesses, but research in 2016 revealed that only 31% of Australians have their income protected.

Research by the Australian Centre for Business Growth suggests that 13% of Australian SMEs fail due to external factors such as natural disasters, changes to regulations, or even shifts in global trends. However, the actual number may be much higher than this.

Income Protection Insurance is not a new type of coverage. In fact, the first recorded policy that was designed to protect income was back in 1880!

What it covers

Most Business Income Protection policies will vary according to your needs. However, you can expect that your policy will cover:

  • The costs of relocation (temporary or permanent)
  • Property damage to products or premises
  • Theft of equipment that prevents you from operating
  • Fixed costs
  • Expenses caused by disruption
  • Wage payments to staff
  • Taxes
  • Loan repayments

What isn’t covered?

Generally, Business Income Protection will not cover you if your business is harmed by you intentionally, particularly in cases where damage was caused by intoxication. You will also find that most policies will only cover your costs if your business suffers a loss or inability to trade as a direct result of a specific disruption.

Businesses exist to make a profit. If a business is unable to make money due to any kind of external factors that are out of the owner’s control, having Income Protection can give you the financial safety net that you need to recover and continue trading.