What insurance cover does a growing business need?

One of the drawbacks to owning a growing business is having more at stake. An expanding business is likely to be having dealings with an ever-increasing number of individuals, getting involved in a wider range of commercial activities, even expanding into new locations.

A growing business usually requires a growing workforce. With more equipment and larger premises come more expensive rent payments. In such circumstances, any revenue-disrupting interruption to its activities can soon escalate into a cashflow crisis.

In short, the cover that was sufficient when you were a sole trader or running a scrappy start-up isn’t likely to be adequate once you’re heading up a thriving enterprise. The end of the financial year is a great time to think about how your business has changed over the last 12 months and review your insurance policies. If you’re pressed for time or simply want the reassurance of an expert opinion, a Steadfast Insurance broker can assist you.

Employers’ liability insurance

When it comes time to make your first employee hire, you’ll be legally required to take out workers’ compensation insurance. You should consider taking out a form of back-up workers’ compensation insurance called employers’ liability insurance. This is because it’s possible for an employee to suffer an illness or injury that is job-related yet not covered under a standard workers’ compensation policy (employers’ liability insurance can cover for these type illnesses, injuries and fatalities.) Even if it’s not a legal requirement, to be an employer of choice, you could have employers’ liability insurance as an additional benefit if you want your employees to have better cover in the event of an employee suffering a misfortune.

Directors’ and officers’ insurance

A growing business will inevitably become more hierarchical and possibly move from a sole trader or partnership business structure to a company one. In any largish enterprise, there are individuals – executive directors, non-executive directors, executive officers, senior managers and the company secretary – who shoulder important responsibilities.

Understandably, these people don’t want to be placed in a position where they could suffer personal financial loss as a result of doing their job. By providing directors’ and officers’ insurance, a business owner can provide cover to key staff and board members. That means they can be reimbursed for their legal costs if competitors, creditors, employees, liquidators, regulators or shareholders take legal action against them.

Business interruption insurance

The more your business grows, the larger its fixed costs are likely to be and the more expensive an interruption to its smooth functioning will become. A suburban café may only be out of pocket a few hundred dollars if a blackout means it has to shut down for the afternoon. In contrast, it’s estimated Starbucks’ recent decision to close its US stores for an afternoon (to provide racial-bias training to staff) cost around US$12 million (A$16 million).

If an unfortunate event means you need to shut up shop, your revenue will typically be severely impacted during the shutdown period. Nonetheless, you’ll probably continue to face the usual wage, rent and other business costs. As explained more fully here, business interruption insurance can provide a pay-out to cover you for those costs, as well as make up for lost sales.

Cyber insurance

In the digital age, an IT issue can be as devastating as any fire, flood or storm. The two threats businesses, especially smaller ones with limited IT budgets, most need to worry about are ransomware attacks and data theft.

A ransomware attack results in a business’s files being encrypted. Important data is rendered inaccessible, which can make it difficult or impossible for a business to keep operating – until a ransom is paid to return things to normal. It’s estimated that, globally, ransomware inflicted US$5 ($A6.5 billion) of damage in 2017.

Governments in Australia and elsewhere are tightening privacy regulations and stiffening financial penalties for data breaches. If a malicious actor overcomes your cyber security and captures your customers’ personal data, the consequences can be more serious than brand damage. You could find yourself being investigated by the government regulator and being sued by your customers. As explained more fully here, cyber insurance can help cover financial losses arising from a cyber security breach

Source: This article was first published by Steadfast Well Covered 
https://bit.ly/2IlCYCB

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Corporate Travel Insurance

If you have employees who are required to travel for work within Australia or abroad  you should ensure that you and they are not exposed to potentially large financial losses as a result of these travels.

Expenses for medical treatment, emergency medical evacuation, flight cancellations, hire car excesses or lost luggage are several common losses that companies can face when their employees are on business trips.

Most firms tend to forget about arranging travel insurance or alternatively arrange a series of single travel policies via their travel agent.

By far the best option to ensure a broader and generally more cost effective cover is an annual corporate travel insurance policy from your insurance broker.

Annual corporate travel insurance policies can be tailor-made to protect your business from all kinds of business travel expenses, including:

  • Personal Injury
  • Medical Expenses
  • Emergency Medical Evacuation
  • Repatriation of Remains
  • Cancellation/Curtailment/Additional Expenses
  • Personal Liability
  • Luggage, Money, Travel Documents
  • Alternative Employee and Additional Expenses
  • Hire Car Excesses
  • Missed Transport Connections
  • Extra Territorial Workers Compensation
  • Kidnap, Ransom & Extortion
  • Political and Natural Disaster Evacuation

If you or your staff travel more than a few times a year on company business then annual corporate travel insurance is for you. That’s because it gives you flexibility and you are covered for every trip without having to remember to apply for a single policy every time.

Please contact our office for more information about the benefits of an annual travel policy for your business.

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Pay your business insurances by the month

Cash flow is the key to survival of any business. Without sufficient cash flow it becomes very difficult for even the most profitable business to avoid financial disaster, or at the very least achieve its true potential.

When economic times are challenging, business leaders should be seeking ways to improve their cash flow and preserve their working capital at every opportunity. One of the easiest ways to do this is by paying your business insurance by the month through a premium funding facility arranged by your insurance broker.

Premium funding companies lend you the amount required to pay your insurance premium and pay it on your behalf. You then repay the premium funding company in monthly instalments over a period of typically 10 months.

The premium funding company charges a flat interest rate on the amount of the premium that is fixed for the term of the loan. And as the loan is secured by the insurance policy in most cases, no security is required. This ensures that applications are simple and processed quickly – usually within 24 hours.

The interest charge is usually tax deductible as a business expense.

Talk to us about preserving your business cash flow with premium funding.

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Cyber-crime: A growing menace

The reality is that all companies, large or small are targets for cyber criminals. Unfortunately many businesses operate under the belief that their existing insurance policies are enough to cover their data security and privacy exposures. This is not the case.

Australian insurance companies however are at the forefront in making good the damage of cyber attacks. Although stopping the hackers and other criminals in their tracks is not within their capability, they are able to provide the next best thing… picking up the financial pieces of damaged businesses following a cyber attack event.

Cyber attack insurance. What can be covered?

Cyber attack insurance can protect you from claims arising from your use of the Internet, email, intranet, extranet or your website. Cover can include but is not limited to:

  • Breach of privacy
  • Damage to your network or website
  • Transmission of a virus
  • Third Party Liability
  • Cyber Extortion

Please contact our office for more information and professional help to implement the right cyber risk protection strategy for your business.

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Why use an insurance broker?

Why use an insurance broker? For the peace-of-mind. That’s why.

There is nothing worse than paying a premium for insurance, then, when you lodge a claim following an insured event, find that you get the runaround from the insurance company and, eventually, a settlement that leaves you well out of pocket.

Buying your business and many personal insurances through a qualified insurance broker has many advantages:

A broker will act on your behalf and provide you with personal advice based on your particular circumstances.

A broker will offer guidance in the selection of your policies.

A broker offers a wider choice from multiple insurers, scheme benefits and discounts as well as expert advice on levels and types of cover that are required.

A broker will provide sum insured calculations, periods of indemnity recommendations and, depending on the size of your asset portfolio, refer you to other specialist services providers such as risk managers, valuers, contractual and legal advisers and even HR specialists.

A broker will stand by you and represent your interests when the time comes to make a claim.

This broker, whose website you are now reviewing, will do all this and more for you. Call us or send an online enquiry to arrange an obligation-free review well before your renewals are due.

You have nothing to lose but stress and sleepless nights.