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Case Study: A Public Liability Insurance Claim from Start to Finish

In 2003, Margaret Hill suffered a serious slip-and-fall injury at a Coles supermarket in New South Wales. She fractured her left ankle near a refrigerated fruit display. The area had no mats or warning signage. Hill required surgery and ultimately faced lasting mobility limitations. 

Hill’s lawyers built a strong case utilising the incident report, employee testimony, and CCTV footage to demonstrate Coles’ negligence, despite the retail giant’s “clean as you go” system. The court awarded Hill $292,335 for medical costs and lost capacity. 

Importantly, however, public liability insurance covered the payout after judgment, showcasing why businesses, big or small, should invest in risk management measures. 

Understanding the Hill v Coles case can help businesses like yours see the importance of obtaining public liability insurance. At Morgan Insurance Brokers, we help you secure the right public liability coverage that protects your business, giving you the much-needed peace of mind. 

What is Public Liability Insurance?

In short, public liability insurance is designed to protect Australian businesses from major financial losses when a third party suffers either an injury or property damage due to the business’s negligence during operations. It typically covers: 

• Bodily injuries
• Property damage 
• Legal costs
• Consequential losses 
• Product liability 

While not legally mandatory, public liability insurance is considered essential for risk management. In many situations, it can be mandated by leases, contracts, councils, and specific licenses. 

For more information on public liability insurance, explore our blogs:

• What Happens If You Don’t Have Public Liabilty Insurance 
• Why Subcontractors Need Public Liability Insurance That Covers Contractual Liability
• Who Needs Public Liability & Contract Works Insurance?
• Does Contract Works Insurance Cover Public Liability Insurance?
• Why Your Turnover Matters for Public Liability Insurance
• Product Liability vs. Public Liability: An Essential Guide for Australian Businesses
• Guide to Public Liability Insurance for Sole Traders
• The Importance of Public Liability Insurance for Nightclubs
• How Morgan Insurance Brokers Saved a Local Brisbane Roofing Company $60,000 on Their Public Liability Insurance Premiums
• How Much Public Liability Insurance Do I Need?
• What Isn’t Covered by Your Public Liability Insurance?
• Do Sole Traders Need Public Liability Insurance?
• The Essential Guide to Choosing Public Liability Insurance for Your Business
• Inclusions and Exclusions of Public Liability Cover
• Sole Trader Public Liability Insurance
• What is Public Liability Insurance?

Step-by-Step Public Liability Claim Process

In Australia, public liability claims follow a clear and structured process from incident to resolution, tailored slightly by state. However, for the most part, most claims follow a similar process: 

• First steps post-incident

Following the incident, the first step would be to log details internally, i.e., photos, witnesses, and CCTV footage. The business should notify management immediately and be prepared to trigger insurer involvement. 

• Notifying your insurance provider 

Contact your public liability insurance as soon as possible. Submit a detailed claim form with evidence. Your insurer will then appoint loss adjusters to coordinate, shielding your business from claimant's lawyers. 

• Investigation and assessment 

At this stage of the process, your business cooperates by providing the maintenance records and staff statements. Your insurer will assess against liability exposure and quantum, often defending you against inflated claims. 

• Settlement or litigation 

The goal is to aim for a swift negotiation and/or mediation, capping costs under policy limits, minimising the possibility of a public trial. In Hill v Coles, the $292K payout was fully insured, enabling Coles to preserve its operations. 

• Follow-up and preventative measures 

Review the incident to identify other potential risk factors and prevent recurrence. Implement better safety protocols, and always ensure your public liability coverage remains up to date. 

Tips for Businesses to Handle Public Liability Claims Efficiently

Businesses across the country can effectively handle public liability claims by prioritising documentation and prompt insurer notification. 

• First, and most importantly, always act immediately post-incident. Provide aid without admitting fault and complete a thorough internal incident report. 
• Next, be prepared to participate fully in the investigation. Contact your insurer within 24 hours of the incident, supplying all evidence to avoid policy breaches. 
• Start training your staff/educating your employees on hazard spotting and incident reporting. 
• Start implementing preventative measures alongside regularly reviewing and improving workplace safety procedures. 
• Last but not least, ensure the content of your public liability insurance reflects your current business operations. If your business experiences growth, adjust your coverage to minimise new risks. 

Secure Your Business Against Unexpected Claims

At any point in time, a public liability incident can happen. Obtaining the right insurance ensures your business is adequately protected from legal fees, compensation claims, and most importantly, reputational damage. 

At Morgan Insurance Brokers, we provide tailored advice that guides you towards selecting the most appropriate public liability insurance for yourself.  Our team helps you: 

• Compare different public liability insurance plans for you
• Tailor recommendations to your business
• Ensure you understand the policy before you accept it
• Support you through claims if the worst happens

Contact us today and gain the utmost confidence that comes with knowing that you’re covered when it matters most. 

by Mojo Dojo

Strata vs. Building Insurance: A Guide for Commercial Unit Owners

As a commercial unit owner in a strata complex, you’ve probably heard a lot of conflicting advice about insurance. Some may tell you that a strata policy covers everything, while others may say you require additional building insurance. 

The reality? It’s often a whole lot simpler than it’s made out to be. However, this only applies if you understand where strata insurance stops and where your responsibility as a commercial unit owner begins. 

This guide breaks it down into a few key sections, and if you require more information, do not hesitate to reach out to our team at Morgan Insurance Brokers. 

What Is Strata Insurance?

In Australia, strata insurance is a compulsory type of building and liability insurance taken out for properties on a strata title. This includes apartment buildings, townhouses, and unit complexes that have shared areas. 

Strata insurance is typically arranged by an owners' corporation to cover the building. Individual unit owners don’t arrange it themselves, but they pay their share through fixed levies. At its very core, strata insurance exists to protect the building as a whole, not individual units. 

Strata insurance typically covers: 

• The building structure, from the walls and the roof, through to the foundations. 
• Common property, such as foyers, stairwells, lifts, and shared car parks. 
• Shared services such as electrical mains, plumbing, and fire systems. 
• Public liability claim for shared spaces. 
• Damage from insured events like fires, storms, impact, and water damage. However, this is subject to policy terms. 

What Is Building Insurance for Commercial Properties?

Building insurance is typically associated with owning a standalone commercial property. With this, you’ll insure the structure, the fixed components, and some external features. However, for commercial unit owners in a strata complex, standalone building insurance is not required. This is because the strata policy already insures the building. 

Nonetheless, there are some exceptions. 

Some smaller strata schemes and/or older title arrangements tend to blur the lines. In certain cases, unit owners are responsible for parts of the structure inside their allotted boundary. This makes relying on assumptions risky. 

Key Differences: Strata Insurance vs Building Insurance

Here’s a simplified breakdown: 

Strata insurance: 

• Covers shared structure and common property spaces. 
• Arranged by the owners' corporation. 
• Cost is shared across all owners. 
• Designed to protect the building, not your individual unit or business. 

Building insurance: 

• Covers a building owned by a single entity 
• Usually applies to freestanding commercial properties 
• Does not include coverage for common areas.

If you’re a commercial strata owner, you need to understand what your strata policy does and does not cover, because that gap is usually where your losses sit. 

Insurance Responsibilities for Commercial Unit Owners

As a commercial unit owner, your responsibilities lie in three places: 

1. First, your unit’s interior. Anything inside your lot boundary that isn’t considered part of your “base building” is your responsibility. This includes fit-outs, flooring, internal walls, and fixtures. 
2. Second, your lease obligations. If you lease your property, the lease will often push certain insurance responsibilities back onto you. This is particularly true around loss of rent or certain reinstatement timelines. 
3. Last but not least, your liability exposure. If someone is injured inside your unit, strata insurance is not appropriate. You’ll require public liability cover. 

Protecting Your Commercial Investment with Morgan Insurance Brokers 

When investing in commercial strata insurance, buying the right cover is important. At Morgan Insurance Brokers, we work with commercial unit owners who want appropriate and effective coverage. Our team reviews the latest strata policies alongside your property and lease arrangements to identify gaps and structure cover that responds when something goes awry. 

If you currently own a commercial unit and haven’t reviewed how your strata insurance interacts with your own cover, now is the time. 

Contact us today to protect your investment effectively. We’ll help make sure you’re not relying on cover that was never designed to protect you in the first place. 

by Mojo Dojo

Understanding Terminal Illness and Critical Illness Riders in Life Insurance Policies

Life is often unpredictable. One day you’re ticking along, the next you’re hit with a serious health diagnosis. That’s where illness riders in life insurance come into play. 

In short, they’re designed to ease the financial burden when life throws a curveball. However, there’s a lot of confusion around terminal illness riders and critical illness riders. People often assume they’re the same thing; they’re not. 

Let’s break it down. 

What Is a Terminal Illness Rider?

A terminal illness rider is an add-on to your life insurance policy that lets you access your policy payout early if you’re diagnosed with a terminal illness. Most policies define terminal illness as one where life expectancy is 12 to 24 months, depending on the insurer.

Think of it as a safety net. You don’t have to wait until the end to get your policy benefits. The lump sum can help cover medical bills, adapt your home for care, or simply provide you with breathing room for your family.

Terminal illness riders are often included automatically in many life insurance policies, so you might already have one without realising. The biggest advantage? It’s generally paid before death, which means you can use it for whatever you need: medical care, family support, or paying off the mortgage.

What Is a Critical Illness Rider?

A critical illness rider (often referred to as trauma cover in Australia) works differently. Instead of waiting for life expectancy to be short, it pays out as soon as you’re diagnosed with a serious illness that’s listed in your policy. This can include a heart attack, stroke, cancer, multiple sclerosis, major organ failure, or other conditions, depending on your insurer.

The payout isn’t just for medical bills. It can help replace lost income if you’re off work, pay for rehabilitation, or allow you to make lifestyle changes during recovery. Unlike terminal illness riders, critical illness cover is usually optional and comes at an extra cost.

Terminal Illness vs Critical Illness Riders: Key Differences

Here’s a simplified breakdown: 

So, if you’re terminally ill, the terminal illness rider pays out. If you survive a heart attack or stroke, the critical illness cover steps in. Many Australians opt for both, providing them with well-rounded protection.

Do You Need Both Riders?

Whether you need both depends on your personal situation:

• Age matters. Younger Australians often prioritise critical illness cover. Older policyholders may already have terminal illness cover built into their life insurance.
• Family responsibilities. If you have dependents, having both can make sense. One covers end-of-life costs, the other covers recovery and lifestyle adjustments.
• Income protection. Critical illness cover prevents a serious illness from turning into a long-term financial burden.

There’s no one-size-fits-all answer. The key is a personalised review, ideally with an independent insurance broker.

Common Exclusions and Limitations

All policies come with conditions. A few common things to watch for in Australia:

• Waiting periods. Some policies require you to survive a certain number of days after diagnosis before a payout.
• Pre-existing conditions. Any illness or condition you had before taking out the policy might be excluded.
• Definition nuances. Words like “heart attack” or “cancer” may have specific definitions depending on your insurer.

Reading the fine print is essential. Overlooking these details can lead to denied claims.

How Morgan Insurance Brokers Can Help 

Terminal illness riders and critical illness riders serve different purposes, but both can play an important role in protecting you and your loved ones. Knowing which one fits your situation, or whether you need both, is a decision worth getting right. 

With expert advice from Morgan Insurance Brokers, you can make those choices confidently, knowing you’ve got your financial safety net in place. We help you:

• Compare different illness riders for you
• Tailor recommendations to your family, lifestyle, and financial situation
• Ensure you understand the policy before you accept it
• Support you through claims if the worst happens

At Morgan Insurance Brokers, we strive to get you covered appropriately with terms that hold up when life doesn’t go to plan. Contact us today. 

by Mojo Dojo

A Guide to Life Insurance Beneficiary Nominations (Binding vs. Non-Binding)

A beneficiary nomination determines who receives the proceeds of your life insurance policy when you pass away. While it sounds simple enough, the detail is where things get complicated.

If your nomination isn’t clear, is outdated, or doesn’t reflect your current circumstances, it can lead to delays, disputes, or unintended outcomes. In some cases, funds may end up tied up in estate processes or paid to someone you no longer intended to benefit.

Getting the nomination right and reviewing it regularly helps ensure the policy does what it’s meant to do: provide financial support to the people who depend on you most. 

What Is a Life Insurance Beneficiary?

A beneficiary is the person or people you nominate to receive the insurance proceeds. That might be a partner, children, another family member, or sometimes an estate or business interest.

You can nominate more than one beneficiary, and you can usually decide how the benefit is split. You can also have a backup arrangement if your first choice isn’t around anymore.

The key point here is this: the nomination matters just as much as the policy itself. And it needs to reflect your current situation. That’s where professional advice comes into play. 

What Is a Binding Beneficiary Nomination?

A binding nomination does exactly what the name suggests. It binds the insurer. If the nomination is valid, the money must be paid to the person or people you’ve nominated.

People often choose binding nominations because they want certainty. They want to know exactly where the money will go, and they want the claim process to be as straightforward as possible.

The downside? Binding nominations need to be kept up to date. Circumstances change, from relationships to growing families. A binding nomination that made sense ten years ago may no longer reflect your wishes today.

What Is a Non-Binding Beneficiary Nomination?

A non-binding nomination is different. It tells the insurer who you’d like to receive the benefit, but it doesn’t lock them in.

Instead, the insurer (or trustee, depending on the policy) looks at the nomination alongside other factors, i.e., financial dependents, personal circumstances, and legal obligations at the time of death.

This can work well where things are complicated. Blended families, business arrangements, or situations where flexibility is important.

The trade-off is that non-binding nominations can take longer to sort out and may open the door to disputes. There’s less certainty about the outcome.

Which Beneficiary Nomination Is Right for You?

There’s no one-size-fits-all answer here. The right option depends on your personal situation.

If things are straightforward and you want clarity, a binding nomination often makes sense. If your circumstances are more complex or likely to change, a non-binding approach might be more appropriate.

What matters is that the nomination lines up with everything else: your family situation, your finances, and any estate planning you’ve done. This is where people often make assumptions and get caught out later.

Common Mistakes to Avoid When Nominating Beneficiaries

The most common mistake is setting a beneficiary once and never looking at it again. 

Another big one is assuming your will covers everything. In many cases, a beneficiary nomination can sit outside your will. If the two don’t line up, the nomination usually wins. That catches a lot of people off guard.

People also forget to update nominations after separation or divorce. If the paperwork isn’t changed, the insurer has no choice but to follow what’s on file.

Moreover, naming minors without proper consideration is another issue. Paying benefits directly to children can complicate things and delay access to funds. 

Then there are unclear or incomplete nominations. Missing details, incorrect names, or outdated information can slow down a claim at the worst possible time.

Finally, many people don’t realise there’s a difference between binding and non-binding nominations. They choose one without understanding the consequences, or assume flexibility where there isn’t any.

None of these mistakes is unusual. They’re just easy to make if no one flags them early. A quick review every few years can prevent serious problems later.

How Often Should You Review Your Beneficiary Nomination?

As a general rule, beneficiary nominations should be reviewed at least every few years, and immediately after any major life event. That includes:

• Marriage or separation
• Divorce
• Birth of a child
• Death of a nominated beneficiary
• Changes to business or financial arrangements

Regular reviews help ensure your cover and your nominations still do what you expect them to do.

How Morgan Insurance Brokers Can Help

At Morgan Insurance Brokers, we take the time to understand your circumstances, explain the differences between binding and non-binding nominations, and ensure your insurance works alongside your broader financial and estate planning goals. 

If you’re unsure whether your current insurance provides the right level of protection, or you’re starting to explore your options, we encourage you to speak with us today.

At Morgan Insurance Brokers, our priority is ensuring you’re properly covered with policies designed to respond when life doesn’t go as planned. 

by Mojo Dojo

Does Your Public Liability Insurance Cover Subcontractors? A Guide For Head Contractors

Many Australian industries rely on subcontractors as employees who perform regular duties. In particular, the construction and trade industries deal with high-volume projects that require a large number of employees, so an efficient way to complete their jobs is with subcontractors. 

As a head contractor, you’ll be in charge of navigating the insurance policy and ensuring that your business is protected. A common misconception is that public liability policies cover everyone on the construction site; however, this doesn’t extend to subcontractors.

Your insurance policies will generally cover your errors and your employees' errors, but subcontractors fall into another bracket. How does this work? Morgan Insurance Brokers, as your experts, will break it down for you.

The Difference Between Employees Vs Subcontractors:

When it comes to insurance policies, terms and conditions are very specific. That’s why it's important that you understand your coverage and ensure that you’re prepared in the event of a claim. So, what is the difference between an employee and a subcontractor?

• Employee: Employees are protected under your policies because they are a part of your company and business. 
• Subcontractor: Subcontractors are under separate business entities with their own ABNs, which means they are liable for their own work and not covered under your insurance policies.

So, subcontractors are an efficient way to manage workload in high-volume and demanding industries, but they come at a risk, as you’re not protected for their work. Insurers will often ask for the percentage amount of your turnover that is paid to subcontractors, so they can calculate your risk.

Am I Liable For Subcontractors' Errors?

If a subcontractor causes damage or makes a mistake, they should be directly liable (i.e. through their own insurance). Your insurance policy will view this as third-party negligence, meaning you’re not directly liable.

However, if a subcontractor doesn’t have insurance and they’re being sued, this may fall on you, as you have the insurance (and finance) to cover it.

How Do I Ensure That I’m Protected From My Subcontractors?

Even if you or your employees aren’t directly liable for the damage caused by a subcontractor, you can be held ‘vicariously liable’ for their actions. So, your policy needs to extend and cover this specific exposure with Vicarious Liability coverage.

Subcontractors can also sue you for negligence if they are injured on your site, which is generally excluded from insurance policies, too. To protect you from this, your insurance policy should include ‘Worker-to-Worker’ coverage, which extends to any claims that come from subcontractors in your business. 

Our Advice 

So, as a head contractor, it is your responsibility to ensure that your business is protected. This starts with the insurance policy. But what do you look for? Let’s break it down.

• Disclosure: You should disclose that your business uses subcontractors to your insurer; otherwise, claims could be denied.
• Certificate of Currency: It is important that, before you allow a subcontractor to begin work on your site, you check that they have a current certificate of currency for public liability. This means they have the appropriate insurance to protect their own work.
• Written Agreement: You should have an agreement in place that explicitly states they own insurance and you are not liable. 
• Compliance: It is down to you to ensure compliance is upheld. For example, if a subcontractor tells you they are renewing their insurance ‘next week’, you should wait until they have obtained it to let them on your site. 

The truth is, when it comes to insurance policies, there is a lot to look for, and it can be easy to miss vital information. With Morgan Insurance by your side, you don’t need to worry about whether you’ve covered all the bases. We’ll navigate the insurance market for you to secure the best terms for your insurance policy. We’re experts, so you don’t have to be. 

Morgan Insurance: From Start To Finish

As your insurance broker, we’ll be with you every step of the way. We’ll get you set up with a policy that works for you when you need it most. 

The best part? We make it easy to get started with us. Reach out today. A member of our team will take it from here, so your insurance isn’t something you need to worry about ever again.

by Mojo Dojo

Management Liability vs. Professional Indemnity: A Guide for Company Directors

As a company director, understanding your liabilities, risks and challenges can save you when it’s crunch time. And the truth is, your risks come from all angles. It’s easy to assume that professional indemnity coverage will protect you, but this isn’t always the case when a claim is made against your management, instead of your professional advice. 

To navigate this, it’s important to understand the difference between the two. At Morgan Insurance, we’re the experts, and we’ll help you navigate the ins and outs, so you’re not in the dark when you need help. We’ll be by your side every step of the way, starting with ensuring you know what your coverage looks like. 

So, what is management liability vs professional indemnity? Let’s break it down.

What Is Professional Indemnity?

Professional indemnity in your insurance policy protects your advice, design or services that you provide clients with professionally. This is particularly important for individuals in careers such as lawyers, engineers or architects, as their professional advice and guidance could lead to long-term errors or mistakes. 

Essentially, professional indemnity covers you from claims your clients make against your professional services. 

What Is Management Liability?

As a company director, management liability protects you against claims of mismanagement, regulatory breaches or misconduct. This can arise from breaches of company law, employment law, or safety regulations, and claims typically come from employees, competitors or regulators.

Company directors have more to worry about than just business services and operations; they are also looked to for their guidance of employees and administration of the business.

Your Guide To Management Liability:

Management liability encompasses more than you think on your insurance policy. It covers the following: 

• Directors and Officers (D&O): This protects your personal assets if you are sued personally for claims of wrongful acts as a company director.

• Employment Practices Liability (EPL): This refers to claims of harassment, discrimination and unfair dismissal.

• Statutory Liability: Government bodies can issue fines and penalties for things like OH&S breaches.
• Corporate Crime: This protects you from claims of theft or fraud that your employees can make.

So, management liability is elaborate and protects you from a range of risks that you can face as a company director. 

Do I Need Both?

The short answer is yes! If you’re only protected with professional indemnity, you’re exposed to lawsuits and regulatory fines, and if you’re only covered with management liability, you're exposed to lawsuits from clients. 

The truth is, you don’t know where your claims and risks can come from when you’re busy running a business. That’s why it’s important to be protected with both, so when the time comes, you’re not left vulnerable. 

How Morgan Insurance Can Help

We’re experts. We’ll navigate the insurance market for you to secure the best terms and policy. It’s hard to understand your policy when you don’t know what you’re looking for. There are exclusions, circumstances and liabilities to consider. We’ll help you get up to speed to ensure that you’re fully protected from any challenges you may face. 

Without a specialist broker, like Morgan Insurance, you’ll be left to navigate the process alone, which can leave you with coverage gaps and make it harder to get the outcome you expect and deserve. 

You don’t want to wait until you need to claim to find out you’re unprotected. With Morgan Insurance, you’ll have guidance from start to finish, so you can focus on running your business with confidence. We’ll do the background work.  

Get Started

Morgan Insurance make it easy to get started. Contact us, and we’ll get you set up with coverage that ensures you’re protected from client complaints and employee complaints. When you need all-around protection, we know how to get it. 

Reach out today.

FAQ’s

Can I combine professional indemnity and management liability? 

Some insurers offer combined policies, but they are generally separate policies to ensure that adequate terms and limits are determined for each risk individually.

What is a retroactive date?

The retroactive date is the date from which you are covered on your insurance policy. For instance, if you switch insurers and you don’t carry over your retroactive date, you won’t be covered for all your past work, professional decisions and advice.

by Mojo Dojo

"Own Occupation" vs. "Any Occupation": The Critical Difference in Income Protection Policies

Income protection insurance protects your income when you’re unable to work due to an illness or injury. The truth is, there are terms and conditions that apply to your policy, and that you need to understand in order to be prepared for the worst. 

For instance, the term ‘own occupation’ vs ‘any occupation’ can mean different things for your insurance claim and how you’re protected when it comes to it. How? Income protection doesn’t just cover you if you can’t do your current job, but if you’re unable to work at all. 

Let’s imagine you’re a surgeon, and you injure your hand so you can’t perform surgery, you can still practice and teach medicine. This is where the critical difference in your insurance policy comes into action.

The Definition:

When you’re navigating your income protection insurance, there are two terms that you will come across: ‘own occupation’ and ‘any occupation’. Let’s break down what these really mean.

Any Occupation

This refers to when an individual is entirely unable to work any job that is relevant to their education, training or profession. So, referring back to the example of the surgeon above, if they were to claim on their income protection insurance, they may be declined as they are still able to carry out other tasks in their field. This is the common standard with most income protection policies, and misunderstanding the term can leave you vulnerable when you need to claim.

Own Occupation

Own occupation determines an individual unable to perform the specific responsibilities of the job they have at the time they submit the claim. So, if this is a term of your income protection insurance, and you’re a surgeon who injures their hand, you will be covered by your insurance policy to allow you a full recovery.

Who Needs Own Occupation?

If you want to allow yourself time to recover if the worst were to happen, then ‘own occupation’ may be a premium that you consider on your policy. However, it is particularly beneficial for individuals in careers such as: 

• Specialised Medical Professionals: Dentists, Surgeons, etc
• Trade or Construction: Builders or plumbers, where a physical injury wouldn’t completely impair their ability to work.

• Any High Income Profession

How Does It Work?

The truth is, ‘own occupations’ are usually subject to higher premiums, but they give you much more certainty and stability that you’re protected if you need to claim, and you can afford to recover in your own time. 

Obtaining ‘own occupation’ terms on your policy can be difficult if you’re only looking at standard income protection insurance. When you use specialised brokers like Morgan Insurance, we’ll navigate the market to secure you the best terms for your insurance policy and ensure you’re appropriately covered. 

We can spot any gaps in your coverage and negotiate better coverage before you need to claim. As brokers, we can see what you can’t. ‘Own occupations’ come at higher premiums, but we’ll secure better pricing for you, so it’s worth it if you ever need to make a claim. 

Morgan Insurance: By Your Side 

Reading the fine print can make all the difference when it’s crunch time. We don’t expect you to go it alone. At Morgan Insurance, we’re dedicated to securing you the best terms and pricing for your income protection insurance. 

The wording of your insurance policy is specific for a reason, and we’ll help you understand why. If you’re not sure about your current coverage, contact Morgan Insurance Brokers, and our team of specialists can review it for you. 

Get started today. We’re by your side. 

FAQ’s

What does ETE on my policy mean?

ETE stands for Education, Training and Experience. Under ‘any occupation’ terms, insurers may look at your CV to determine what other jobs you have the education, training or experience to do, so you may still have to work, and your claim could be rejected. 

Is ‘Own Occupation’ tax-deductible?

Generally, yes. If you hold additional policy terms, like ‘own occupation’, it is 100% tax-deductible, which makes it all the more worthwhile when you need to make a claim.

Why is there a higher premium on ‘Own Occupation’?

These terms usually come at a higher premium as they come at higher risks for insurers, that they will need to pay out if you submit a claim. 

by Mojo Dojo

Common Strata Insurance Mistakes Brisbane Body Corporates Make

Strata insurance is one of the most important responsibilities of a body corporate, yet it’s also one of the most misunderstood. In Brisbane and across Queensland, many strata schemes unknowingly expose themselves to significant financial risk due to common insurance mistakes.

Below are the most frequent strata insurance mistakes Brisbane body corporates make, and how to avoid them.

1. Underinsuring the Building Due to Outdated Valuations

One of the most common (and costly) mistakes is underinsuring the building.

In Queensland, body corporates are required to insure their building for full replacement value. However, many strata schemes rely on valuations that are years old and no longer reflect current rebuilding costs.

Why this is a problem in Brisbane

• Construction costs have increased significantly
• Labour and material shortages affect rebuild pricing
• Older valuations may not include demolition, debris removal, or professional fees

Tip: Brisbane strata buildings should generally obtain an updated insurance valuation every 3–5 years, or sooner after major works.

2. Assuming Flood Is Automatically Covered

Many Brisbane body corporates assume flood insurance is automatically included in their strata policy. This is not always the case.

Flood cover can:

• Be excluded entirely
• Be limited by sub-limits
• Have higher excesses

Given Brisbane’s exposure to flooding and severe weather, misunderstanding flood cover can leave a strata scheme dangerously exposed.

Tip: Always confirm:

• Whether flood is included
• How flood is defined in the policy
• Any limits or exclusions that apply

3. Not Understanding Excess Structures

Another common mistake is failing to understand how excesses apply to strata claims.

In Brisbane, excesses for events such as water damage, storm damage, or flood can be significantly higher than standard claim excesses. Some policies also apply separate excesses per claim type.

Common misunderstandings include:

• Assuming the excess is the same for all claims
• Not knowing who pays the excess (owner vs body corporate)
• Being unaware of higher excesses for weather-related events

Tip: Body corporates should review excess schedules annually and ensure committee members understand how they apply in real claims.

4. Believing Lot Owner Contents Are Covered

Strata insurance covers common property and building structures, not personal contents inside individual lots.

A frequent issue arises when:

• Lot owners assume fixtures, fittings, or improvements are covered
• Disputes occur after a claim about what is body corporate responsibility

Tip: Clarify the boundary between strata insurance and individual contents insurance, and communicate this clearly to owners.

5. Choosing Price Over Policy Coverage

It’s tempting for body corporates to focus solely on premium cost at renewal. However, the cheapest policy often comes with:

• Reduced coverage
• Higher excesses
• More exclusions
• Limited claims support

In Brisbane, where weather-related claims are common, policy wording matters far more than minor premium savings.

Tip: Compare coverage, exclusions, and claims support, not just price.

6. Not Reviewing the Policy Each Year

Strata insurance needs change over time as buildings age, regulations evolve, and risk profiles shift.

Failing to review policies annually can result in:

• Inadequate sums insured
• Outdated cover
• Missing optional protections relevant to Brisbane conditions

Tip: Each renewal should involve a proper review, not an automatic rollover.

How Brisbane Body Corporates Can Avoid These Mistakes

Avoiding these common mistakes starts with:

• Understanding Queensland strata insurance requirements
• Keeping valuations up to date
• Reviewing policy wording carefully
• Seeking professional advice when comparing insurers

A specialist strata insurance broker can help body corporates navigate policy differences, explain complex clauses, and support claims, particularly important in Brisbane’s risk environment.

Final Thought

Most strata insurance problems only become visible after a claim is lodged, when it’s too late to fix them. By addressing these common mistakes early, Brisbane body corporates can protect their buildings, finances, and owners with greater confidence.

by Lauren Spice

Does Public Liability Insurance Cover Faulty Workmanship? A Guide for Tradies

As a tradie, you know things can go wrong even at the best of times. That’s what public liability insurance is for, right? Wrong. The truth is, public liability insurance does cover your mistakes, but it’s not black and white. 

With a whole range of risks to consider, like workplace injuries, equipment damage and liabilty claims, understanding your insurance policy can help protect your financial stability, workflow and business reputation. 

At Morgan Insurance, we equip you with the knowledge to navigate your insurance policy and claim with confidence.

So, how does public liability insurance really work? Let’s break it down.

Understand The Distinction:

Public liability insurance protects you from any unexpected injury or damage caused by your workmanship. For example, you drop a tool, and it damages your client's property, or a spark from your welder catches fire. 

Faulty workmanship incurs replacement costs more than anything else. It is something that you did incorrectly, which, as a result, the client needs re-done or corrected.  This is considered a business risk, not an accident. Under the terms of your insurance policy, you are expected to perform your work to a high and professional standard. So, where this is not upheld, you are not covered.

It boils down to rectification vs consequential damage. Consequential damage is unforeseen and not a direct result of poor or faulty workmanship, so it is covered under your insurance policy.

How To Get Comprehensive Cover?

As a tradie, it’s hard to predict what will happen with your workmanship once the job is completed, and this is out of your hands. So, to ensure that you’re fully protected, here are the core elements you’ll need to be insured for: 

Products Liability Insurance:

This covers personal injury or property damage caused by a defect or side-effect of the work you have completed or the product you installed. 

Professional Indemnity Insurance:

This is particularly important for electricians, architects, designers and construction builders, where they can be protected from financial loss or impact caused by a mistake in their professional advice. 

Contract Works Insurance:

Construction site damage or damage to the work that is underway can be protected by contract works insurance. 

How To Claim: Step-by-Step

When the worst happens, and you need to make a claim, you’ll want to make sure you do everything right. With an insurance broker like Morgan Insurance by your side, you can ensure that everything is taken care of. But following these steps will ensure a smoother process: 

• Act: Take any photos as evidence.

• Claim: Contact your broker to submit your claim. They’ll ask for any necessary and supporting documentation that you can provide (i.e. photos, receipts, etc).
• Excess: Your insurance policy should detail what your excess is (i.e. how much you’re liable to pay upfront before your insurance covers the rest). Understanding this is important as it ensures there are no surprises when you’re filing a claim.

It’s normal to miss steps and overlook certain details. That's why we recommend using a broker like us to help you navigate your claim process and ensure you get the outcome you deserve, every time. 

Morgan Insurance: Your Go-To Guide

At Morgan Insurance, we’re insurance experts. We’ll navigate and secure the best insurance policy for your business needs. There’s a lot that goes into protecting your workmanship; you don’t want to risk being underinsured. When you try to understand your insurance policy alone, it can leave you with coverage gaps that leave your professional work vulnerable.

Leave it with us. We’ll ensure that your work is protected, so you’re not left in the dark when things go wrong. We’ll help you get started. Contact our team today. 

FAQ’s

Why are Rectification Costs excluded?

Your insurance policy is intended to protect against accidents and unforeseen damages. The costs associated with poor-quality work are considered a business expense, as they include quality control, industry standards and warranties.

Does product liability cover faulty work?

Product liability insurance does cover faulty work, but only for the consequences that arise after the job is finished. It will cover the damage caused, but not the cost of replacing or fixing the faulty work or installation.

by Mojo Dojo

What Is Strata Insurance? A Complete Beginner Guide (Queensland)

Introduction: What Is Strata Insurance?

Strata insurance (also known as body corporate insurance) is a mandatory insurance policy that protects the building structure and common property of strata-titled properties in Queensland. It is arranged by the body corporate and applies to apartments, townhouses, units, duplexes and mixed-use developments.

If you own or manage a strata property, understanding strata insurance is critical, not only for compliance but also to avoid significant financial risk.

Learn more about working with a specialist Strata Insurance Broker in Queensland

What Types of Properties Need Strata Insurance?

Strata insurance is required for properties registered under a strata title or community title scheme, including:

• Apartment buildings
• Unit complexes
• Townhouse developments
• Duplexes and triplexes (if strata titled)
• Mixed-use buildings (residential + commercial)

If multiple owners share ownership of common property, strata insurance is almost always required.

Is Strata Insurance Mandatory in Queensland?

Yes. Under the Body Corporate and Community Management Act 1997 (Qld), bodies corporate must hold:

• Building insurance for full replacement value
• Public liability insurance (minimum $10 million)

Failure to comply can expose the body corporate and committee members to legal and financial consequences.

What Does Strata Insurance Cover?

Strata insurance generally covers everything outside your personal belongings.

Building & Common Property

• Walls, floors and roofs
• Windows, balconies and stairwells
• Lifts, foyers and hallways
• Shared pools, gyms and car parks

Insured Events

• Fire and explosion
• Storm, hail and wind damage
• Water damage (subject to policy terms)
• Impact and vandalism

Liability Protection

• Public liability claims
• Injury or property damage on common property

Additional Optional Covers

• Machinery breakdown (e.g. lifts, pumps)
• Temporary accommodation or loss of rent
• Catastrophe and emergency costs
• Committee member (office bearers) liability

What Does Strata Insurance NOT Cover?

Strata insurance does not cover:

• Furniture or personal belongings
• Contents inside individual lots
• Owner-installed fixtures (in some cases)
• Wear and tear or poor maintenance

Lot owners should arrange contents insurance or landlord insurance separately.

Who Pays for Strata Insurance?

Strata insurance is paid by the body corporate and funded through strata levies. Each owner contributes based on their lot entitlement.

Rising building costs and extreme weather risks have increased strata insurance premiums across Queensland.

Read our expert tips on How to Reduce Strata Insurance Premiums

How Much Does Strata Insurance Cost in Queensland?

There is no fixed cost. Premiums depend on:

• Building replacement value
• Location and weather exposure
• Claims history
• Number of lots
• Construction materials

Premiums can range from a few thousand dollars per year to significantly higher for large or high-risk buildings.

What Happens When There Is a Strata Insurance Claim?

When damage occurs in a strata property, the claims process is typically managed through the body corporate and can involve multiple parties. Understanding how this works early can help prevent delays, disputes and unexpected costs.

A typical strata insurance claim involves:

1. Reporting the damage
   Damage should be reported as soon as possible to the strata manager or body corporate, who will determine whether the issue relates to common property or an individual lot.

2. Lodging the insurance claim
   The claim is lodged with the strata insurer, usually by the strata manager or a specialist strata insurance broker acting on behalf of the body corporate.

3. Assessing responsibility
   The insurer assesses whether the damage falls under strata insurance or an owner’s contents or landlord policy. This step is critical in claims involving water damage, fire or shared services.

4. Repair, settlement or recovery
   Approved claims result in repairs being arranged or a settlement being paid. In some cases, recovery action may be taken against a responsible party.

Strata insurance claims can quickly become complex, particularly where water damage, maintenance issues or building defects are involved. Having a broker manage the claim helps ensure it is handled correctly, efficiently and in the best interests of the body corporate.

Why Use a Specialist Strata Insurance Broker?

Strata insurance is highly technical and varies between insurers. A specialist broker:

• Ensures QLD legislative compliance
• Accesses multiple insurers
• Negotiates better premiums and coverage
• Assists with complex claims
• Avoids underinsurance risks

FAQs

Does strata insurance cover water damage?

Yes, if caused by an insured event. Gradual leaks or maintenance issues may be excluded.

Is strata insurance the same in every state?

No. Requirements vary by state. This guide applies specifically to Queensland.

Do I need strata insurance for a duplex?

Only if it is strata titled. Otherwise, a different policy may apply.

Final Thoughts

Strata insurance protects one of the largest shared assets owners have, the building itself. Understanding how it works, what it covers, and how it’s managed helps avoid disputes, uninsured losses and costly mistakes.

For expert advice tailored to your building:

Contact Morgan Insurance Brokers, Queensland strata insurance specialists.

by Lauren Spice