Business Insurance Blog


Key Concerns for Business Owners

A recent survey conducted by Vero has provided valuable insight into the primary concerns of small to medium business owners. The top concerns identified were; 

  • Increase in costs 
  • Economic downturn
  • Competitors 
  • Being unable to trade
  • Equipment breakdown
  • Adverse publicity 
  • Adverse regulatory changes 
  • Workplace accidents 
  • Political instability 
  • Cyber attack

As a business owner, it’s very important to identify the key risks to your business and have a plan in place to minimise any negative financial impacts. 

While insurance is not the answer to all the concerns listed above, it is an important step in building a risk management plan for your business and protecting the financial security of you and your family. 

If you would like to discuss how insurance can play a part in protecting your business, please call us. Our team of professional brokers are happy to help. 


Management Liability Insurance: Are you covered?

Over the last couple of years, we’ve noticed legal proceedings concerning negligence and / or breaches of legislation occurring more frequently. As a business owner, you’re exposed to significant legal defence costs and fines. Even if you’ve done nothing wrong, you can still be required to pay legal expenses to defend yourself if a disgruntled employee brings a case against you. 

Management liability insurance is designed to protect companies from the expenditure involved in defending their business and payouts / fines that may be awarded.   

Management Liability covers a broad range of areas. Key sections include issues pertaining to OH&S, Employment Practices, Employee Crime, and Statutory Liability. To help you develop a better understanding of this insurance, one of our insurance partners have provided a few real claims examples below.

If you would like to discuss Management Liability insurance in more detail, please give us a call.


Public Liability Insurance – Injury to Sub-Contractors

Over the last couple of years, we have noticed insurers starting to ask a lot of questions around the use of sub-contractors, particularly in any trades related industry. This additional underwriting is a result of increasing claims for personal injury to sub-contractors. 

As a sub-contractor is not deemed to be an employee, they are not covered under the businesses workers compensation insurance. So if a sub-contractor is injured while working under your direction, they (or their workers compensation insurer) can bring claims against the business owner’s public liability insurance. Claims are being made on the basis of business owner’s not providing (and documenting) adequate training, safety procedures or insuring a safe working environment. 


Business Insurance – Are you Underinsured?

New research from CGU has revealed that underinsurance is potentially a serious risk to the sustainability of many small businesses with many operators facing devastation if they suffer a major setback or loss.

The research, carried out in partnership with loss adjusters McLarens Young International, reviewed actual levels of underinsurance – not just business perceptions of the problem.


What is Business Interruption Insurance?

To put it simply, Business Interruption insurance protects against loss of profit resulting from an interruption to your business activity. Interruption to your business activity has to be caused by an insurable event such as Fire, Storm, Accidental Damage, Machinery Breakdown or other events you are insured against as stated in your business policy.

Common problems suffered by businesses as a result of interruption include:

  • loss of profit margin on stock destroyed;
  • non-fulfilment of standing orders;
  • breaking of contracts and / or loss of customers to competitors;
  • certain continuing expenses, for example, rent, payroll, interest;
  • additional expenditure in order to minimise loss of income, like rental of temporary operating premises, or working additional shifts;
  • the availability of replacement plant and machinery or parts for damaged plant and machinery;

Business Insurance – The Risk of Under-Insurance

Apart from the obvious risk of not insuring your business assets for full replacement value, an additional risk lurks in the fine print of your business insurance policy. The clause I am referring to is generally called an “Under-Insurance” or “Co-Insurance” clause.

It’s a difficult clause to explain, and I do recommend you refer to your policy wording for worked examples, however the general provision of the clause allows the insurance company to only pay a percentage of a claim in the event your business is under insured.