What does product liability insurance cover?

Product liability insurance is part of public liability insurance. It helps protect businesses that manufacture, sell and import products that are bought and used by the public. This cover provides protection when someone claims to have suffered personal injury or property damage as a result of your business's product.

Let’s say a power tool fault electrocutes a builder, a faulty airbag means it doesn’t inflate on impact injuring a passenger, or a chair fails and causes someone to fall off it and break their arm. The power tool manufacturer, the airbag manufacturer and the chair maker could be at fault and need to rely on their product liability insurance to respond to any legal claims made against them as a result of these incidents.

A claim could also be made against the retailer of the product and the importer of the product if it was imported. Under Australian law, an importer of goods is in some situations deemed to be the manufacturer and can be subject to the same legal obligations as the actual manufacturer.
 

Product liability issues can fall into one of these three categories. The product has a fault in its design, there’s a fault created by the manufacturing process or there’s a labelling fault. This means the product does not come with adequate safety warnings or instructions as to use.

“Every business should consider product liability insurance, because the policy has a very broad definition of what your product is,” says Michael White Steadfast Broker Technical Manager. “Your work is your product under these policies, not just the goods you sell. For instance, let’s say a tradesperson comes into your house and repairs your washing machine. Their work is the product. A claim arising out of defective repair work can be a product liability claim, not a public liability claim.”

White says importers should also be aware as the importer, they can be liable for defects in the products they import, as well as the offshore manufacturer being liable.

If you’re in business, chances are you may need product liability insurance. Talk to your broker today to make sure you’re covered in the event your products or the work you do leads to harm or injury.

Five steps to help respond to a cyber attack?

With cybercrime on the rise, it’s becoming a matter of when, not if, a business will be the victim of an attack.

So it’s vital to have a well-developed response plan ready to go in the event of a ransomware attack or other cybercrime.

Here are five of the key steps to take.
1. Trigger your disaster recovery plan and contact your insurer
Your approach to cyber security should have a clearly articulated strategy which you can learn more about in our Preventing a cyber-attack blog. You should also immediately contact your cyber insurer, who may be able to appoint an experienced forensic expert to assess the damage from the attack. These experts can investigate how the attack occurred, the strain of ransomware or other attack, and can suggest other remediation steps.
At this stage, you may want to seek advice from a professional about disclosing the breach to government bodies, regulators and other stakeholders, including affected customers and staff.

2. Restore stolen data from backups
Ideally the business will have recently backed up its data and system externally to servers that are not connected to the main network. That way, the criminals can’t delete the back up and the business can be backed up and running in a relatively short time space.
How frequently to undertake back-ups depends on the nature of the business. As a general rule, the greater the frequency and number of transactions the business does, the more regularly it will need to back up this information. For some businesses, it will be minute-by-minute. For others, back-ups once a day are sufficient.

3. Make a commercial decision about paying a ransom
In general, it’s inadvisable to pay criminals a ransom after an attack. But from time to time, businesses may have no choice but to take this step. This is often when they have not adequately backed up their data, and paying a ransom is the only way to get access to it.
This is even more reason to ensure good back up hygiene. If there’s no choice but to pay a ransom, your insurer may require proof the criminals are in possession of the data before any money is transferred.

4. Implement a post-recovery plan
Once you have access to your data, it’s time to get back to business. This starts with a health check of the network.
Be aware any initial attack may be a distraction from a larger attack to a different part of the IT system. Exploring that possibility should be a focus of the health check.
Post-recovery activities may also involve work to restore the business’ reputation among its clients and other stakeholders. Follow expert advice to implement policies and procedures to help reduce the risk of future cyberattacks. Develop clear and timely communication, so no one is kept guessing about the actions you’ve taken to better protect your business.

5. Check and recheck the network
After an attack, perform regular scans and penetration tests. This involves trying to find vulnerabilities in the system so you can understand what needs to happen to reduce the risk of hacks.

Do you have the right cover?

Your broker can help you perform a risk assessment of your business to help ensure the right mechanisms are in place to withstand a cyberattack. Contact us today to find out more.

Insurance for small businesses with bushfire risks?

What are the key risks posed by bushfires?

Research shows that bushfire risks are rising across Australia, especially in coastal WA, central Queensland and in large parts of NSW, Victoria and the ACT. Bushfires can spread with little warning and can be unpredictable, with the potential to cause damage due to smoke or water as well as the fire itself. Even businesses outside of the fire zones can feel the impact of bushfires, with supply chain disruption affecting their ability to access goods and demand surge increasing the difficulty of accessing some services.

“Bushfire seasons are getting longer and catastrophic events are increasing, as hotter, drier conditions make fuels more combustible.”

Bushfire Risk: changing trends across Australia, IAG, 2020.

Who should consider insurance?

While you can’t control the weather, insurance can help to protect small businesses across Australia from the risks bushfires pose to both their premises and trading. Contrary to popular belief, bushfires are not just a threat facing rural businesses. Thanks to the urban sprawl of our cities, outer metropolitan suburbs are meeting the bush and increasing the risk to more businesses Australia-wide.

Confused about business insurance?

Confused about business insurance?

Trying to work out exactly what type and how much insurance your business needs can be complex, time‑consuming and overwhelming. And the wrong cover could be devastating to your business if things go wrong.

With so many options on the market, and with the emerging risks such as cyber, and new products coming available all the time, it can be hard to be confident you’re making the right choice. That’s where we can help. 

Insurance is simple when you have an expert on your team

Save time

With Steadfast’s innovative tools, we can quickly compare and assess different insurance products taking the hard work out of finding the right cover. We can take the time to understand your business and tailor a policy to match - so you don’t need to spend time researching insurance options yourself. Policy wordings can be complex and making sure you have the right one for your business needs can be confusing. With the expertise of a Steadfast insurance broker on your team, you can be sure you are getting the best available.

Save money

As part of the Steadfast network, we can often negotiate lower prices for our clients - so you can get the right cover at the right price. We can provide expert advice to help your business withstand cyclical premium increases, helping keep your cover cost-effective. Our claims and policy management processes help to minimise price rises over the life of your policy.

Stress less

We can take time to understand the unique risks for your business and ensure they’re covered - so you can be confident you’re protected. You’ll be supported by the strength of Steadfast, which manages more than 2.3 million policies for small to medium businesses. If you need to claim, we can champion your cause with insurers every step of the way - helping assure the best outcome for your business.

Corporate Travel Insurance At A Glance ?

What is corporate travel insurance?

When business travel doesn’t go to plan, corporate travel insurance can help to cover out-of-pocket costs to your business and employees.

"If you're going overseas, travel insurance is as important as a passport. If you can't afford travel insurance, you can't afford to travel." Australian Government, Smart Traveller website, 2022

Who should consider it? If you or your employees need to travel for work, corporate travel insurance can protect your business from financial loss associated with situations such as overseas health emergencies, flight cancellations or lost and stolen baggage.

Corporate travel insurance is similar to personal travel insurance. It can cover your business for unanticipated travel costs if specific events happen.

Corporate travel insurance also covers your directors and employees, and spouses and dependents travelling with them.

Farm Insurance At A Glance

What is farm insurance?

Working on the land brings many rewards – but just as many risks. As a farm owner, you’re vulnerable to bushfires that can destroy livestock or damage your buildings and other property; machinery breakdown which can cost you time and money; personal illness or a serious accident; or even a claim from a guest injured on your property.

That’s why farm insurance can help protect your farm and its produce, and the wellbeing of you, your family and the people that pass through your property.

“Australian agriculture accounted for 12% of goods and services exports in 2020–21.”

Australian Government Department of Agriculture, Water and the Environment, Snapshot of Australian Agriculture 2022

Who should consider it?

Whether you’re a large-scale crop grower or livestock producer or a small family or hobby farm, farm insurance can help protect your farm, its produce and livestock – and the people who benefit from it.

The importance of a policy review?

If you’ve had the same insurance policies in place for a long time, there’s a good chance that your circumstances are not the same as when the policy was first taken out.

As part of our client service approach, we can handle the day-to-day management of your insurance cover. This includes holding regular review meetings to help make sure you continue to have the right level of protection and recommending changes where necessary to account for either new or emerging risks to your business.

It’s good practice to not only review your policy each year, but also when there are changes in your regular circumstances.

62% of SMEs are unlikely to have the right insurance in place to protect their business.
(QBE SMEs and Insurance Report – Pureprofile research study of 609 Australian SMEs completed for QBE Insurance during April 2019)

When should you have your policy reviewed by a broker?

There are many situations that should trigger a review of your insurance policies, including changes in the following:

•  Levels of stock – you should ensure your policy covers the current value of your stock on hand. We can adjust your policy to reflect this value.

•  Staffing – if you have either increased or reduced the size of your team, this may affect the types and levels of cover you need.

•  Equipment and other business assets – your current policy may not cover new business assets you have purchased recently. If you have sold assets, you may be able to decrease your sum insured to reduce your premium.

•  New risks to your business – has the way you operate your business created any new risks to consider? For example, increased cyber risks from working in different environments.

•  Increased or reduced turnover can impact your business interruption policy.

•  New products or services you have launched.

•  Changes to sales channels, distributors or trade partners.

•  Any newly created entities may have affect your operations or have interests in assets.

•  Any changes to directorships.

Make Sense Of The Insurance Market?

Like any market, the business insurance market experiences different cycles that can affect pricing and how easy it is to getcover. Depending on the stage of the cycle we'rein, this can mean more risk and higher premiums for you.

That's where we can help. As insurance experts, we can help you navigate the insurance market to find you value for money insurance that's suitable to cover your business needs. And as part of Steadfast, Australasia's largest network of general insurance brokers, wecan help negotiate better cover.

A hardening market can mean higher premiums and tougher underwriting decisions - so it pays to get an expert on your team.

Understanding insurance market cycles

Insurance premiums are generally governed by the insurance cycle which moves between a 'hard' and 'soft' market, based on economic and other factors. In a soft market, insurers are chasing market share- competing with lower premiums and better underwriting terms-and making it easier and cheaper to get the cover you need.

Factors like a worsening economy, higher claims- perhaps due to a string of natural disasters and storms-and poor investments can lead the market to harden. In these times, premiums tend to be higher -and underwriters less willing to take on additional risks

Get the right cover for your business

As a business owner, having the right cover is essential to protect your workforce, premises and your ability to stay open if you’re sued or a disaster occurs. Without it, you could risk losing everything you’ve worked so hard to build. But with so many options available, how can you be sure you’re making the right choice?

That’s where we can help. We can take the time to understand exactly what risks your business faces - and then help ensure that you’re properly covered. We can even help you negotiate a better price for your policy - and support you if you need to make a claim. You can get on with your day-to-day business without the worry, knowing that your insurance is in capable hands.

Experience

Our brokers have a deep understanding of businesses across a range of industries. We can also take the time to understand your company’s specific risk profile. This means we can provide expert advice on tailoring insurance policies for your business - so you don’t waste valuable time researching and comparing cover options.

Negotiating power

As part of the Steadfast network, our brokers have the power to negotiate better prices and policy terms. We have access to exclusive Steadfast policy terms that offer broader and more comprehensive cover for our clients. We Can also arrange for customised policy options, so no matter how unique your needs, we can help ensure your risks are covered. This means better procession for you business - at a more competitive price.

Strength

Enjoy the backing of Australia’s largest general insurance broker network, which manages more than 3.2 million policies for small to medium businesses. As part of the Steadfast network, we have access to policies across local and international markets - so we can help you find the cover you need, at a competitive price.

Trade credit insurance at a glance?

What is trade credit insurance?

If you trade or sell goods on a credit basis, you’re at risk of bad debt or non-payment by customers. This can disrupt your cashflow and leave you out of pocket.

Trade credit insurance is important for protecting your income and business assets against potential customer failure. With the right cover, you can grow your business confidently, knowing you can be protected if things go wrong.

“Late payment times have continued to increase, this suggests that some of the weakness evident in the economy early in 2017 has impacted the time it takes firms to pay their bills.” - Stephen Koukoulas, Dun & Bradstreet Economic Adviser

Who should consider it? All registered businesses that sell goods and services on credit terms, such as 30 days to pay, should consider trade credit insurance. This includes businesses that trade domestically and internationally.

Some trade credit insurance policies also offer the bonus of working with designated collection agencies to help you recover your debts – taking the pressure off this difficult and time-consuming process.