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.
If you offer a professional service, chances are you're selling your knowledge. But what happens if your advice isn't right? We look at the risks involved in giving advice for a living.
To err is human, or so the saying goes.
Superstar footy players miss match-winning kicks, the savviest politicians put their foot in it, and yes, even the very best business professionals provide advice that can go awry from time to time.
For athletes and politicians, a mistake often simply leads to a loss or an embarrassing headline, soon to be forgotten. But what happens if you're an accountant, lawyer, financial planner or and give advice that isn't on the money?
Let's take a look at some of the consequences below, as well as how you can protect yourself against them.
Operating a business online can be cost effective and flexible, with overheads substantially less than a high street shop-front and ready access to global markets. Yet with a never-ending list of things to think about, from supply-chain logistics, to digital marketing, payment gateways and legal, insurance often becomes a ‘hope for the best’ exercise without accounting for the true business risk exposures.
To ensure your online business is protected in a claim, we’ve created a checklist of key covers to consider.
Many Australians, especially those who own businesses, discover they don’t have the cover they need in the worst possible circumstances.
Insurance is one of those subjects that many people glaze over. So, just to test how knowledgeable you are about this important but unsexy topic, see how many of the following you can answer.
Online businesses are charged with responsibilities above and beyond those of a traditional bricks and mortar store.
Starting a retail business is, in many ways, easier today than it’s ever been. It’s perfectly possible, and indeed common, to start a retail business from home with nothing but a website and a small amount of inventory.
Australians are increasingly working from home, with the most recent data from the Australian Bureau of Statistics indicating at least a third of us choose to work from home at least past of the time.
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, business that suffer 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 time of writing.
The fires and subsequent road closures hit these businesses especially hard given how reliant they are on tourist trade during the summer holiday period. It’s a time when most of them make the bulk of their revenue.
Additionally, most of the businesses affected by the fires were small, family-run operations.“These people rely on the cash flow from their business to support their livelihoods. So they need a policy that responds quickly,” Connolly says.
It’s a timely warning to all policyholders to check their insurance and assess the level of cover they have under their business interruption policy. It’s especially important to see if the policy includes provision for weekly payments.
This can make all the difference after a major disaster such as the Black Summer bushfires to ensure businesses are able to continue to trade and maintain their obligations while they get back on their feet.
Underinsurance remains a serious issue for small businesses, with the Insurance Council of Australia’s (ICA) statistics showing 12.8 per cent of small businesses and 24 per cent of sole traders have no insurance. Organisations operating in the education sector have the highest rate of non-insurance at 25 per cent of entities in this industry with no insurance.
