Insurance

Short Guide To Insurance Success For Business Owners

As a business owner, one of your priorities is to protect your company against unexpected challenges or disasters. One way to achieve this outcome is with insurance, but there are so many policies available - which ones are right for your business?

Some insurance policies are compulsory in Australia, others are optional or depend on your business needs. There are also so many insurance companies out there, all with different inclusions, exclusions and costs. Identifying the best coverage for your business can be daunting, which is where Morgan Insurance Brokers come into the picture. Using our vast experience in the insurance industry, we help you navigate your way through this minefield, crafting an affordable package that fully protects your business.

Let’s explore business insurance a little deeper, starting with why you need business insurance, followed by the insurance you must have, as well as those that are beneficial, and ending with the problems of under or no insurance and the costs of coverage.

Why Do I Need Business Insurance?

Business insurance is indispensable for several reasons: legal requirements, asset protection, liability coverage, and trust and stability in the market.

• Legal Requirements: Some insurance policies are mandatory depending on your business type and location. For instance, workers' compensation insurance is compulsory in Australia.
• Asset Protection: Business insurance helps protect your assets, including property, equipment, and inventory, from unforeseen events like fire, theft, or natural disasters.
• Liability Coverage: This shields your business from legal claims and liabilities. If a customer or employee files a lawsuit against your company, liability insurance can cover legal fees and settlements.
• Trust & Stability: Securing insurance for your business increases consumer confidence and trust in your company and enhances your company's reputation and stability in the market.

Compulsory Insurance in Australia

While your specific business insurance needs may vary, there are some compulsory policies that are required by law: Public Liability, Worker’s Compensation, and Third-Party Personal Injury Insurance.

Public Liability Insurance: Depending on the industry, some occupations are required to have Public Liability Insurance before they are allowed to trade. Public Liability Insurance Protects your business from claims related to injury or property damage caused to third parties on your premises.

Workers' Compensation Insurance: This policy covers medical expenses and lost wages for employees injured on the job; only required if you have employees.

Third-Party Personal Injury Insurance: If your business owns one or more vehicles, this insurance is compulsory and is included in the registration fee.

Suggested Business Insurances

Whilst not mandatory, these are several additional policies that offer comprehensive coverage for your business, depending on your sector, size and operations. This includes protecting your income, assets, employees, customers and data.

• Business Interruption Insurance: Covers income loss in the event of a disaster that forces your business to close temporarily.
• Property Insurance: Safeguards your business property and assets from theft, fire, vandalism, and natural disasters.
• Professional Indemnity Insurance: Essential for service-based businesses, it provides coverage for professional negligence claims.
• Cyber Insurance: In today's digital age, protecting your business from cyber threats is crucial. Cyber insurance helps cover the costs of data breaches and cyberattacks.
• Commercial Vehicle Insurance: If your business uses vehicles, this policy protects your vehicles and drivers in case of accidents.
• Product Liability Insurance: If your business manufactures or sells products, this policy covers you if your product causes harm to consumers.

There is also coverage for glass and signs, cargo and transit, directors and officers, and so on.

Consequences of Underinsurance or Lack of Insurance

Underinsurance or a lack of coverage can lead to challenging consequences, potentially resulting in severe financial loss, legal complications, and damage to your business's reputation.

• Severe Financial Loss: Without adequate coverage, a single catastrophic event could financially devastate your business.
• Legal Complications: Failing to meet legal insurance requirements can result in fines or even closure of your business.
• Reputational Damage: If your business can't meet its obligations due to a lack of insurance, it can damage your reputation and trustworthiness.

Cost of Insurances

The cost of insurance policies can vary significantly based on a variety of factors, such as your industry, location, and coverage needs. While insurance is an expense, it's an investment in the longevity and security of your business. Remember that the price of not having insurance can far outweigh the cost of annual premiums.

Securing Your Business Future

Understanding the type of insurance your business requires is essential for its survival and long-term success. That’s why it’s important to talk to the experts at Morgan Insurance Brokers because we tailor an insurance package that perfectly suits your business needs.

Remember - underestimating the importance of insurance in safeguarding your business from unforeseen challenges – is a recipe for disaster.

by Mojo Dojo

What Business Insurance Do You Need?

Business insurance is a financial safeguard that ensures your company's continuity, stability, and reputation when unexpected events unfold. It's a comprehensive suite of policies designed to protect against a multitude of risks and uncertainties in the business world. Let's explore specific events that can disrupt your business and the corresponding insurance types that can mitigate these challenges.

Warehouse Fire

Insurance Needed: Business Property Insurance

In the unfortunate event of a warehouse fire, business property insurance becomes your lifeline. This policy covers the cost of repairing or replacing damaged property, including inventory, equipment, and the warehouse itself. It ensures your business can quickly recover and resume operations without incurring devastating financial losses.

Vehicle Accidents

Insurance Needed: Commercial Vehicle Insurance

When one of your business vehicles is involved in an accident, commercial vehicle insurance steps in. It covers the cost of repairing or replacing the damaged vehicle and can also provide liability coverage in case of injuries or property damage caused by the accident. This policy ensures that your business can continue its transportation operations without being burdened by significant repair or liability expenses.

Cybersecurity Breach

Insurance Needed: Cyber Insurance

In the digital age, a cybersecurity breach can have devastating consequences. Cyber insurance protects your business from the financial fallout of data breaches, cyberattacks, or hacks. It covers the costs of investigating the breach, notifying affected parties, and potential legal liabilities. This policy ensures that your business can recover and rebuild trust in the aftermath of a cyber incident.

Employee Injury

Insurance Needed: Workers' Compensation Insurance

Workers' compensation insurance is indispensable in the unfortunate event of an employee injury. It provides coverage for the injured employee's medical expenses, rehabilitation, and lost wages. This policy supports your employee's recovery and ensures that your business complies with legal requirements, avoiding potential fines and penalties.

Product Recall

Insurance Needed: Product Liability Insurance

When faced with a product recall, product liability insurance is your safeguard. It covers the costs associated with product defects or safety issues, including legal fees, settlements, and any necessary recalls. This policy protects your business's financial stability and reputation during challenging product-related incidents.

Natural Disaster

Insurance Needed: Business Interruption Insurance

Business interruption insurance is essential when a natural disaster occurs. For example, a flood or bushfire disrupts your business operations. It compensates for lost income during the downtime, allowing your business to continue paying bills, salaries, and other operational expenses while you recover and rebuild.

Employee Lawsuit

Insurance Needed: Employment Practices Liability Insurance 

In the event of an employee lawsuit, employment practices liability coverage is crucial. It protects your business from claims related to employment practices, such as discrimination, harassment, or wrongful termination. This policy covers legal defence costs and potential settlements, ensuring your business can navigate legal challenges without incurring substantial financial losses.

Employee Theft

Insurance Needed: Crime Insurance

In the unfortunate event of employee theft or embezzlement, crime insurance is your safeguard. This policy covers financial losses resulting from criminal activities within your organisation, such as theft, fraud, or forgery. It ensures your business can recover stolen assets and maintain its financial security.

Supplier Default

Insurance Needed: Trade Credit Insurance

When one of your suppliers defaults on their obligations, trade credit insurance steps in. It covers the financial impact of supplier insolvency or non-payment, ensuring that your business can continue its operations without suffering significant losses or disruptions in the supply chain.

Legal Claims with Third Parties

Insurance Needed: Commercial General Liability Insurance

In case of legal disputes with customers, commercial general liability insurance provides the coverage you need. It protects your business against claims of bodily injury, property damage, or personal injury caused by your products, services, or operations. This policy covers legal defence costs and potential settlements, allowing your business to navigate customer-related legal challenges without substantial financial strain.

Natural Resources Pollution

Insurance Needed: Environmental Liability Insurance

Environmental liability insurance is essential in the event of accidental pollution or environmental damage caused by your business operations. This policy covers the costs associated with pollution cleanup, legal fees, and potential fines or penalties imposed by environmental authorities. It ensures your business can address environmental liabilities without jeopardising its financial stability or reputation.

Securing Your Business’s Future With Insurance

Business insurance is your strategic asset against a spectrum of potential challenges. It's not just an expense; it's an investment in the resilience and prosperity of your organisation. When you understand the specific insurance needed for various events, you can ensure that your business remains well-protected and ready to face whatever challenges may arise. From property damage to legal liabilities, business insurance is your financial safety net in a dynamic and unpredictable business world.

Got any questions? Contact us today!

by Mojo Dojo

Why Do Businesses Need Insurance?

Starting and running a business involves a multitude of risks, making insurance an indispensable component of any successful organisation. Also known as commercial insurance, business insurance is generally a package of policies designed to safeguard your company from financial losses incurred due to unexpected events or liabilities. These policies are tailored to the specific needs and risks associated with your industry and business type.

However, if you’re not convinced that an insurance package is right for your business, here are ten reasons why it’s an investment you should consider.

• Protecting Assets and Investments

Businesses invest substantial resources in assets, for example, equipment, inventory, and property. Without insurance, these assets are vulnerable to a wide array of threats, such as fires, theft, natural disasters, and accidents. Business insurance ensures that if these events occur, the financial burden doesn't fall solely on you as the business owner. It provides compensation to repair or replace damaged or lost assets, allowing your business to continue operations despite the damaging event.

• Mitigating Liability Risks

Liability risks are inherent in any business operation, encompassing bodily injury, property damage, or even legal disputes. Liability insurance, including public liability and professional indemnity coverage, shields businesses from the financial repercussions of lawsuits and claims. It covers legal fees, settlements, and compensation, offering peace of mind and protecting your business's financial stability.

• Legal Compliance

Across Australia, certain types of insurance are mandatory for businesses. For instance, workers' compensation insurance is compulsory in all states and territories, ensuring that employees are financially protected in case of workplace injuries. Failure to comply with these legal requirements can result in fines, penalties, and even the closure of your business.

• Business Continuity

Unexpected events can disrupt business operations, leading to loss of income. Business interruption insurance can be a lifesaver in such situations as it provides coverage for lost income during downtime caused by destructive events, such as fires or natural disasters. This financial support enables your business to continue paying bills, salaries, and other operational expenses even when your doors are temporarily closed.

• Supporting Business Growth

With adequate coverage, your business can confidently pursue opportunities, expand into new markets, and take calculated risks, knowing you have a safety net to absorb potential setbacks. This flexibility and security can help your business thrive in a competitive environment and navigate unexpected challenges with resilience.

• Reputation Management

A good reputation is invaluable to the success of any business, so having the right type of insurance package demonstrates responsibility and commitment to stakeholders, customers, suppliers, and partners. When an unexpected event or accident occurs, insurance allows your business to fulfil its obligations and maintain its reputation.

• Financial Security

Perhaps the most fundamental reason for businesses to have insurance is financial security. Insurance acts as a financial safety net for the owner, protecting personal assets from potential claims or losses. It also protects your business from catastrophic financial setbacks that could otherwise result in bankruptcy or closure.

• Risk Management and Peace of Mind

Business owners face a multitude of risks daily, from economic fluctuations to operational challenges. Insurance allows you to transfer some of these risks to the insurer, providing peace of mind and allowing you to focus on managing and growing your business rather than worrying about potential pitfalls.

• Tailored Coverage

Business insurance is not a one-size-fits-all solution, as policies can be customised to meet the specific needs of your business, taking into account your industry, size, location, and unique risks. This tailored approach ensures that your coverage precisely matches your business's requirements.

• Competitive Advantage

Having comprehensive insurance can give your business a competitive advantage. It can make your organisation more appealing to clients and partners who want to work with financially stable and reliable companies. This advantage can help your business secure contracts and partnerships that may otherwise be out of reach.

Insurance – The Cornerstone of Business Resilience

Given the upheavals in almost all sectors over the past few years, insurance is not merely a protective measure but a strategic necessity. It’s a vital tool that ensures your business's continuity and financial stability. From protecting assets to managing liabilities, complying with legal requirements, and ensuring business continuity, insurance serves as a safeguard against potential setbacks. It encourages confidence among stakeholders, maintains your reputation, and contributes to the overall success of your business.

For any business, regardless of size or industry, the question should not be "Do we need insurance?" but rather "How can we best safeguard our future with the right insurance package?".

Are you Still confused about what insurance to get? Contact us.

by Mojo Dojo

The Seriousness of Mould

Mould is caused by the growth of fungi. Usually, it's seen in damp, moist areas, after a water leak, or just areas with little natural light, and poor ventilation.

Mould can start to grow within 24 to 48 hours under suitable conditions and can spread rapidly through a property. Over time, it can cause significant damage to structures and furnishings. If mould gets on fabric, you can almost guarantee that it'll have to be disposed of.

Prolonged exposure to mould can also lead to health issues, especially for those with allergies or asthma.

All in all, mould is a pretty nasty and serious issue that needs to be actioned as soon as it occurs. If not, you could find yourself in a financial pickle as the more mould that's at the property, the costlier it could be to rectify.

For Landlords

Landlords are required to ensure their rental properties are safe and habitable for their tenants. If a landlord manages the property themselves, it's important that the mould is removed promptly. If the landlord has engaged a property manager, this responsibility then falls on the property manager.

For Property Managers

Property managers also have a large responsibility to protect the tenants from health issues that mould could cause, as well as damage to the landlords property. Property managers need to jump onto any report from the tenant that the property contains mould and have it rectified immediately, with ongoing checks to ensure it has not returned. Failure to rectify, or delay repairs, can be a breach of professional duty for a property management business and they could find themselves having to bear the repair costs.

For Tenants

Tenants need to notify the landlord or property manager in writing as soon as the mould is identified to avoid further damage to the rental property, as well as trying to minimise or exacerbate any health issues that mould can cause.

The Issue

A good tenant would notify immediately, and a good property manager would rectify immediately. But what happens when there are delays? A tenant has a responsibility to notify any damages as soon as they are noticed. It is unlikely that if there is escalated costs to repair due to delay that it would be at the tenants expense.

Whereas, if a property manager was to delay rectification, the entire bill could land on their lap. Similarly, if the landlord did not repair the property, the repair costs could increase substantially and they could also have a legal liability issue if the tenant decides to pursue for damages. Damages could include medical costs, time off work, relocation costs etc if the mould caused serious health issues.

The tenants also have a right to break lease if the property is not in a habitable state. This can be quite costly for the landlord as they would have to pay for the advertising costs, repair costs, and lost rental income for any time in between finding another suitable tenant.

Does Insurance cover mould damage?

Mould is an exclusion under insurance policies.

Many insurance policies do not cover mould damage or limit coverage because mould can be a preventable problem. Insurers often view mould as a maintenance issue that property owners should address before it becomes a larger problem.

However, there can be cover considered if the mould is a direct result of an insured event, say a leak from a storm.

Prevention is the key 🔑

• Running an air-conditioning on the dry setting
• Keeping windows open in dark areas of the house if possible
• Fix leaks as they occur
• Use mould resistant paints in wet areas like bathrooms and laundries
• Having extraction and exhaust fans in bathrooms, kitchens and laundries

All in all, mould is a serious issue for property owners, tenants, and property managers. It should be addressed as quickly as possible to ensure no further damages to property, or health issues to occupant occurs. Insurance may or may not cover the remediation costs, which further highlights the urgency that mould represents.

by lauren

The Talent Drought

Why I chose work from home for my next employee

When recruiting for the next position, I decided that I would take the route of a work from home position, rather than an employee in our Brisbane CBD office. Being in the industry for so long, I have noticed that there is definitely a talent drought. The good Brokers have either started their own businesses, or they have the perfect working environment (good salary, work life balance, career advancement opportunities, friends, mentors etc) at their current role, that you couldn't convince them to jump ship even if you offered them a million dollars. It seemed rare to find great talent.

I was nervous at the thought on how long it would take to fill the role, or the level of quality of candidates that would apply.

Fortunately, offering a work from home role was exactly what was needed. Skilled, well known and reputable candidates were interested, from all different states of Australia. Now, I had an abundance of choice. Is this the key to finding great talent during a drought?

The Talent Drought

I can only speculate why the insurance broking sector is facing a lack of skilled candidates for new roles and positions. The industry is lacking younger professionals entering the field to replace the senior Brokers of this generation.

It also could be that industry is not well known of? I know that I've spoken to many potential clients before, and they hadn't realised that insurance brokers existed, or what services they provide.

For the purpose of this, an Insurance Broker is your biggest advocate for your financial security. Lacking sufficient insurance protection can put your business, personal assets, and financial stability in jeopardy. Our role is to provide you with a shield against these risks by providing tailored insurance policies and ongoing support.

The rise of insuretech

Insurtech is a rapidly growing sector that aims to modernise and simplify the insurance experience through technological advancements. The use of AI, automated software, online quote and bind platforms surely will have a major impact on the industry talent.

Other industries/the Gig Economy, and ECommerce

E-commerce and side hussles can offer attractive and flexible work life balance, the potential to earn more income quicker (if successful), and be more rewarding creating something of your own, drawing potential candidates away from traditional fields like insurance broking.

Skills

The job requires a unique combination of sales skills, compliance understanding, and detailed knowledge of a range of insurance products. This can really rule out a lot of potential candidates given it's complexity.

Offshore help

Offshoring can be more cost-effective for insurance brokerages. Lower labour costs mean that they can get the same work done for less money. However, this has a negative impact on the local insurance talent. Instead of hiring younger entry level juniors to do basic admin and assistant roles, allowing for more talent to start a career in insurance broking, these jobs are going to offshores. I can see this having a negative effect on the pool of candidates in the coming years.

To mitigate this talent drought, the industry needs to enhance its image and invest in targeted recruitment to the younger generation and school leavers. I also believe that a more flexible working environment is needed, such as the opportunity to work from home.

What are your thoughts?

by lauren