What is a retroactive date?
What is a retroactive date?
A retroactive date in insurance, standardly when used within a Professional indemnity insurance policy refers to the date and time that your policy will respond to events that could arise in a claim.
Retroactive dates are also commonly used in Management Liability Insurance policies as well.
For example, if your retroactive date was today, then your Professional Indemnity Insurance policy would not cover you for claims made against you for actions or events that happened prior to today's date.
If a notification, or incident that could arise which would trigger your Professional Indemnity insurance policy, the policy would only respond to events that occured on or after the retroactive date.
Standardly, you have the option to choose an unlimited retroactive date or specify a specific date.
Is an unlimited retroactive date more expensive?
If you opt for an unlimited retroactive date to cover for any events in the past, the premium could be more expensive as it offers a greater level of protection for your business.
It is important to note that when you are transferring to a different insurer at any point in time, some insurers will request to see proof of your previous retroactive date before they will match your previous date - whether it be unlimited, or a specific date. A specific date could be the date where you first took out insurance.
Morgan Insurance Brokers can assess your cover requirements, along with your budget to provide you with comprehensive quotes that will protect your business from the risks they face. Contact us today.
Why it’s important that your subcontractors have their own insurances before working with you
Using subcontractors as part of your business is a very common occurrence. It is a good business strategy of outsourcing your work without the commitment and overheads of employing staff. However, did you know that although you engage subcontractors, you could be responsible for their actions?
In some instances, a business may be involved in a public liability claim and incur legal and defence costs even if they weren't directly responsible for the incident.
There are a few scenarios in which a business might be involved in a public liability claim without being directly responsible:
• Vicarious liability: vicarious liability occurs if an incident involves one of your subcontractors the youve engaged as part of your work, job or contract, where your business might be vicariously liable for the actions or negligence of their subcontractors while they were acting within the scope of their contract with you.
• Negligent supervision or inadequate induction processes: if your business has failed to provide adequate training or supervision to your contractors, you might be held partially responsible for the incident. If negligent supervision is proven, your business may be held financially responsible for the damages caused by your subcontractors.
What are the financial implications of being vicariously liable for the actions of my subcontractors?
There could be legal and defence costs incurred to understand and determine the facts of your the incident that has occurred and your level of involvement, and your potential contribution to the compensation claim brought against your company.
How can Public Liability insurance protect my business?
Public liability insurance is an insurance cover that protects businesses and individuals from claims brought against them for actual and alleged negligence to third parties that can result in bodily injury, or property damage.
 Who does Public liability insurance cover?
Public liability insurance will cover the named Insured on the policy. For example, a business could be an insured under the policy, but their employees could also be covered.
Are my subcontractors covered for their negligence under my public liability insurance policy?
If a subcontractor was found negligent and deemed responsible for damages, it is important that they have their own Public liability policy as your policy will not extend to cover their negligence.
Do I need to note subcontractors on my public liability insurance policy?
Ensuring that you disclose the use of subcontractors on your policy is an important part of your insurance cover. The use of subcontractors could increase the perceived risk for the insurance companies. They can also impose higher excess and different policy conditions as a result. Failure to disclose the subcontractors could limit your coverage when you come time to claim.
It is important to review your subcontractors' insurance coverage before they start working with you to ensure that the insurance coverage policies are adequate to protect your business, and theirs. It is recommended that you site their Certificates of Currency prior to them starting work.
Contact us to discuss your Public Liability Insurance in more detail to ensure you're adeqduately covered.
What Insurances do I need when entering a Commercial Lease?
Depending on the requirements of your landlord and real estate, there a few different Insurances that your business may be required to insure as part of your lease and Contractual Requirements. Bear in mind, that all leases are different and may not require all of those. The below mentioned Insurances fall part of a comprehensive Business Package Insurance Policy and can be tailored to meet your needs.
Public Liability Insurance
Public liability insurance protects your business from third party property or bodily injury claims where you're found liable for. It can pay the legal, defence and compensation costs in the event a claim is brought against your business.
The lease may require that you need $20,000,000 as a minimum. Some leases do not specify an amount.
Property Insurance
As you're occupying a physical office, retail space, warehouse or the likes, insuring your contents and stock against events such as fire or natural perils like storm is the obvious choice to protect your assets from the unknown.
Business Interruption Insurance
This insurance covers financial losses that may occur if your business is unable to trade because of a fire or natural peril. It will replace your lost business income until your business is back to pre-event turnover levels.
Plate Glass Insurance
Glass Insurance covers your internal or external, or both for Breakage.
Engaging Morgan Insurance Brokers means that we can review your lease and provide you with an insurance solution that will align with your lease requirements whilst also protecting your business.
Do I need Professional Indemnity Insurance?
What is professional indemnity insurance?
Professional indemnity insurance is a type of insurance coverage designed to protect professionals from claims that arise from errors, omissions, or negligence in their professional services that they've provided.
What industries need professional indemnity insurance?
Occupations and industries that provide professional services, and or give advice such as consultants, accountants, lawyers, architects, engineers. This is not an exhaustive list.
Do I need Professional Indemnity Insurance?
When professionals provide advice or services, there could be a risk that their work may result in financial losses. Professional indemnity insurance helps by protecting you and your business by providing coverage for legal costs and amounts claimed in compensation.
Examples of Professional indemnity claims
- Professional negligence Breach of professional duty
- Misrepresentation Defamation
- Infringement of intellectual property rights.
These are a few examples that could be covered under a professional indemnity insurance.
How using Morgan Insurance Brokers can help your business
Morgan Insurance Brokers can help guide you through obtaining a Professional Indemnity insurance policy that is going to best protect your business. Professional indemnity insurance policies can have quite a few conditions and exclusions that are difficult to interpret. We also have access to a large panel of providers that you may not have access to directly.
Contact us today.
Do I need Plate Glass Insurance?
Glass insurance may be a requirement of your commercial lease, or you may find yourself wanting to insure for glass if your unit or shop front has a large amount of glass. This can include internal and external glass.
What does glass insurance cover?
Glass cover can cover emergency costs to secure your address if there was a glass breakage.
It can pay for the cost of repairing or placing the broken glass.
Glass insurance can also pay for the costs incurred to replace sign writing if it needs to be replaced in the event of glass breakage.
How much am I insured for?
Standardly, the glass insurance limit is automatic up to $10,000. However, if you have items of glass that exceed this amount, we can look to get these covered as well.
Do I have to pay an excess?
An excess is usually applicable on all glass claims. $250 is the minimum excess that we see under a standard business package policy.
Contact Morgan Insurance Brokers today for a glass quote for your business!
Does a demolition business need asbestos insurance?Â
If your business involves demolition, you have exposure to asbestos. Your exposure could be limited if you contract out 100% of the asbestos removal, however you could still face an exposure that could result in hefty legal fees to your business as a result of asbestos disturbance, or removal.
What is vicarious liability?
Vicarious liability is a legal concept that could find you responsible for the wrongdoing of your contractors (in this instance; asbestos removal contractor you've engaged) regardless if you were involved in the actual wrongdoing. In simple terms, if a client has engaged your services, the claim for damages will be first brought against you, rather than your subcontractor. Legal costs and penalties could be incurred as a result.
In conclusion, regardless if you contract out 100% of your asbestos work, you still have exposure. This financial exposure can be mitigated by ensuring that your public liability insurance has an asbestos extension.
Morgan Insurance Brokers can assist your business find the most affordable and comprehensive cover for your demolition business. We have access to a large panel of insurers that exclusively deal with brokers only, and that you don't have access to as a consumer.
Reach out today.
Insurance Policy Review
In the current environment, the costs of sourcing material and labour has has increased substantially between 20-40% in the last 2 years as a result of the economic pressure COVID-19 put on the building industry which means it's more important now than ever to check if your insurance policy adequately reflects your situation.
How often should I review my sums insured on my insurance policy?
With the prompting from Morgan Insurance Brokers each year, we recommend, and can assist updating your insurance cover to adequately insure your property and assets for their true replacement cost.
How do I determine the replacement costs of my home or investment property?
Fortunately, there are many online tools that allow you to calculate the replacement cost of your buildings. These calculators take into consideration the construction material, size of the property (excluding the land size) and other features and provide a replacement cost. We are Home Insurance Broker specialists and Landlord Insurance Experts.
How do I determine the cost of my personal contents?
Similar to building insurance for your home, there are online contents calculator available. However, these figures do seem to be inflated. We suggest recording all the items in your home, and record what the cost would be to replace those items at today's retail price.
How do I determine the cost of replacement for my commercial property?
If you own a commercial property, online calculators may not be available to determine the cost of replacement for your building. Therefore, it is recommended that you contact a qualified builder, architect, or Surveyor to provide you with an accurate figure.
How do I determine the replacement cost of my business contents and stock?
To determine the cost of your contents/fitout, we suggest that you keep on record an asset register and have another document that has their replacement values as of today's date recorded. These figures need to reflect today's replacement cost for new, and not to take into consideration depreciation.
The importance of updating your sums insured annually
To avoid being penalised at claim time, we recommend reviewing your sums insured each year. For residential purpose properties such as a owner occupied homes and investment properties, there aren't any financial penalties imposed by the insurer, however, you could find yourself contributing to the loss/claim.
For commercial properties, including contents and stock claims, if you under insure which exceeds the insurer's threshold, then you could be heavily penalised - commonly known as co-insurance, or under-insurance clauses. This could be detrimental to your financial future.
With the help of Morgan Insurance Brokers, we can assist you in reviewing your sums each year to avoid any unexpected headaches if you were to experience a claim.
Sole Trader Public Liability Insurance
What is Public Liability Insurance?
Public Liability Insurance is insurance cover to protect individuals and businesses from legal claims brought against them by third parties such as customers, for bodily/personal injury or property damage as a result of their business activities, or their products that they sell.
What does Public Liability Insurance Cover?
Public Liability Insurance covers the costs of any legal fees, compensation demands, and other expenses when a third party has suffered a loss as a result of your neglience.
Do Sole Traders Need Public Liability Insurance?
Sole Traders may interact with customers or members of the public on site, for example if they are in the construction industry, or if they have clients visit their office. When there is activity that involves contact with customers, there is the risk that an injury or property damage could occur. Public Liability is crucial, especially for those industries that have a higher risk of bodily injury, such as businesses that sell/distribute/manufacture products, or are involved in the construction industry.
Contractual Requirements
Some of your customers may require you to hold a Public Liability Insurance policy before they engage your services. Standardly, if this is the case, they will require you to have $20,000,000 cover.
Obtaining Public Liability Insurance using the services of Morgan Insurance Brokers makes the process streamline, quick and efficient. We can assess your situation, your risk level, your budget, then provide a suitable cover to protect your business. Refer to our page "Public Liability for Sole Traders" for more information.
