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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.

by lauren

Sole Trader Public Liability Insurance

by lauren

Risks of Operating without Business Insurance

Operating a business without insurance exposes you to numerous risks that can lead to severe financial consequences. Running a business is a venture filled with excitement, challenges, and rewards. As an entrepreneur, you invest your time, effort, and resources into creating something meaningful. However, amidst the hustle and bustle of daily operations, there is one crucial aspect that can often be overlooked or underestimated: business insurance.

Insurance plays a critical role in effective risk management for businesses, providing protection against unforeseen events and liabilities. In this article, we will delve into the importance of various insurance types and how they safeguard your business's future.

1. Public and Products Liability Insurance:
   

• Protect your business from potential financial losses caused by injuries to third parties resulting from your negligence.
• Cover costs associated with third-party property damage, such as accidental collisions or chemical spills.
• Essential for retailers, wholesalers, manufacturers, and distributors as it provides coverage against product-related injuries to the public.
  

2. Property Insurance:
   

• Businesses with physical locations face risks like fires, severe weather events, and other unforeseen incidents that can damage premises.
• Disruptions or complete shutdowns can significantly impact business turnover.
• Adequate property insurance covers repair or replacement of physical assets, including contents and stock, and provides coverage for business interruption expenses, employee wages, and fixed business expenses during the rebuilding phase.
  

3. Workers' Compensation Insurance:
   

• Prioritize the safety and well-being of your employees, despite implementing safety measures.
• Workers' compensation insurance is mandatory in all states and territories and provides coverage for employees and contractors in case of work-related injuries.
• Protects your business from potential legal actions and financial liabilities arising from workplace injuries.
  

4. Cyber Insurance:
   

• In the digital age, businesses face a significant threat from cyber attacks.
• Cyber insurance offers protection against financial consequences resulting from data breaches, ransomware attacks, and other cyber threats.
• Costs of restoring computer systems, paying ransom fees, and hiring IT services can be substantial, making cyber insurance a crucial safeguard.
  

Safeguarding your business from potential risks is essential for its long-term success. Insurance coverage provides financial security by mitigating the impact of unforeseen events, liabilities, and cyber attacks. Working with an experienced insurance broker can help navigate the complex insurance landscape and identify the most suitable coverage for your business. Prioritizing insurance is a proactive step toward protecting your business's future and ensuring its resilience in the face of uncertainties.

FAQs

Q: What are the risks of operating a business without insurance?

Operating a business without insurance exposes you to various risks. These risks include financial losses due to liability claims from injuries to third parties, property damage costs, business interruption, legal actions resulting from workplace injuries, and cyber attacks that can disrupt operations and lead to significant financial consequences.

Q: What is public and products liability insurance?

Public and products liability insurance protects businesses from potential financial losses arising from injuries caused to third parties due to the business's negligence. It also covers costs associated with third-party property damage resulting from business operations.

Q: Why is public liability insurance important?

Public liability insurance is crucial because it provides financial protection in case a member of the public, such as a customer, contractor, or supplier, is injured due to the business's negligence. Without this insurance, the business may be liable for substantial compensation, potentially leading to financial ruin.

Q: What does property insurance cover for businesses?

Property insurance covers the physical assets of a business, including its contents, stock, and premises. It provides financial protection against damages caused by events such as fire, severe weather, theft, or other unforeseen incidents. Additionally, it offers coverage for business interruption expenses, employee wages, and fixed business expenses during the rebuilding or repair process.

Q: Why is workers' compensation insurance necessary?

Workers' compensation insurance is essential because it provides coverage for employees and contractors in case of work-related injuries or illnesses. It ensures that employees receive necessary medical treatment and compensation for lost wages while protecting businesses from potential legal actions and financial liabilities resulting from workplace injuries.

Q: What is cyber insurance and why is it important for businesses?

Cyber insurance is a type of coverage that protects businesses from the financial consequences of cyber attacks, data breaches, and other cyber threats. It covers costs associated with restoring computer systems, paying ransom fees, legal expenses, and hiring IT services to recover from a cyber attack. As cyber threats continue to rise, having cyber insurance is crucial to mitigate potential financial losses and protect sensitive business information.

Q: How can an insurance broker assist in obtaining suitable coverage?

An insurance broker is an expert in the insurance industry who can help businesses navigate the complexities of insurance policies. They can assess the specific needs of a business and provide jargon-free guidance, helping to identify the most suitable coverage options. An insurance broker can compare policies from different insurers, negotiate terms, and ensure that businesses have adequate protection against potential risks.

by Mojo Dojo

Do I Need Insurance to Run a Business from Home?

A business that runs from home has very similar risks to that of a business that operates from a commercial space.

Below are some examples of some home businesses and what risks they may have and which insurance policies can help protect your home business,

E-Commerce Businesses - No stock held at home

• Run from home
• No Customers to the home
• Items imported or Dropshipping arrangement
• No Stock held at home

High Risks 

Products Liability - E-Commerce Businesses that sell products to their customers can be exposed to claims for injury or property damage caused by the product that they sell. As they are the first point of contact in Australia rather than the manufacturer located overseas, the claims for the damages will be brought against the Australian business first.

Low Risk

Public Liability (slips and falls at your house by third parties such as customers) is a low risk if you are doing a dropshipping-style business where you don't have customers in your home.

Fire & Perils - if you do not hold stock from your home, there is no need to insure for stock cover against fire and perils such as weather events. You could consider insuring your contents items such as your workstation.

Money Cover - E-commerce businesses usually transact 100% online and it's rare to have physical cash at your home, so the need for theft of money is quite low.

Electronic Breakdown - This covers your electronic items such as phone systems, computers, laptops etc for breakdown. However, depending on your size and set-up, the cost to replace a computer system is quite cheap and the insurance is probably not worth it.

Machinery Breakdown - Covers breakdown to machinery that runs by a motor - fridges & fridges,  machinery etc. A dropshipping business does not have a machinery breakdown risk.

Business Interruption - If you do not hold stock at your home, the need for business interruption insurance is low. It would cover your lost profits if you were unable to trade due to a fire/flood/storm that destroyed all of your stock for example. As it's likely that all of your business is done online through your computer, interruption cover is not a high risk.

Theft - If you do not hold stock from home, theft insurance is a low risk, Your home contents insurance policy may cover your business use a computer, but you would need to check your policy to confirm.

E-Commerce Businesses - Stock held at home

• Run from home
• Items Locally Sourced 
• No Customers to the home
• Stock Held At Home

High Risks -

Fire & Perils can be a high-risk consideration for your business if you hold a large value of the stock from the home. (cover for fire, storm, hail, flood, lightning, earthquake, power surge, landslide, cyclone etc)

Products Liability (Injury or product damage from the items you sell online) - The risk is the same for any business that sells items. The claim will be brought against you first as you're the first point of contact for your customer. The claim may also include your supplier however, this depends on the agreement that you have with your supplier. You may agree to waive your rights to subrogation. Doing this means that you are taking responsibility for the injury or property damage claims that are caused by the product that you sell.

Business Interruption Cover - depending on the level of stock you hold at your home, this could be a high risk. If a fire/storm/flood etc were to cause damage to your stock, how long would it take to order new stock, and to be completely operational before the insured event mentioned?

Transit Cover - Again, depending on the size of your business, transit cover could be a large risk. Transit Insurance covers your stock whilst in transit - import, export, and around Australia.

Theft - Depending on your stock, theft of stock from your home could be a high risk.

Low Risk -

Money Cover is most likely a lower risk as not many businesses carry cash. Money cover protects again theft.

Electronic Breakdown - This covers your electronic items such as phone systems, computers, laptops etc for breakdown. However, depending on your size and set-up, the cost to replace a computer system is quite cheap and the insurance is probably not worth it.

Machinery Breakdown - Covers breakdown to machinery that runs by a motor. Most E-Commerce businesses will have a low machinery breakdown exposure.

Manufacturing of goods and items from home (candles, gifts, baked goods, art, jewellery, clothing, promotional goods, cosmetics, pottery, soaps,) then retailing to the public.

• Run from home
• Customers to the home and/ or online business
• Stock Held At Home

High Risks -

Products Liability is a high risk for E-Commerce businesses where they manufacture the product themselves. As claims will be brought against you as the manufacturer and the retailer,  it's important that you have products liability insurance.

Public Liability risk could be high for these types of businesses as they could have customers frequently buying their items. They could also attend events such as markets etc. Public Liability Insurance will protect you against third-party injury and property damage claims that you're liable for, including product liability claims.

Low Risk -

Theft -  As theft from the home may happen, the value of your stock may be quite low, and it's not likely that all of your stock would be stolen.

Fire & Perils (cover for fire, storm, hail, flood, lightning, earthquake, power surge, landslide, cyclone etc against your contents and stock)

Electronic & Machinery Breakdown - Depending on your activities, this could be a considerable risk but for home businesses however, the equipment and machinery used may be fairly inexpensive and might outweigh the need for insurance.

Business Interruption Cover - if you are holding a lot of stock that would greatly impact your sales if they were destroyed (fire, flood, storm etc) then this cover is highly recommended to protect your profit until you return to your pre-loss sales, however, most home businesses do not hold a lot of stock and will only be slightly impacted.

Transit Cover (covers your stock whilst in transit - import, export, around Australia)

Money Cover - Most home businesses do not hold much physical cash on the premise and as such, the need for this insurance is low.

Online Professional Services from home (financial services, bookkeeping, administration services, marketing company etc)

• Run from home
• No Customers to home
• No stock held

High Risks - 

Professional Indemnity - If you provide a professional service, whether it be from a home, or at an office, the exposure is exactly the same. Professional Indemnity will protect you for advice and recommendations given and any breach of your professional duty.

Low Risks - 

Injury to the public (Public Liability Insurance) - you may on occasion visit clients away from your home, in a cafe for example, but apart from that, injury to third parties is extremely low.

Electronic Breakdown - the cost to replace electronic equipment if it were to break down is extremely cheap depending on your set-up, and as such the risk is low for this insurance.

Machinery breakdown - There is no machinery breakdown risk for online professionals that work from home.

Fire & Perils, Theft - Your computer set-up could be at risk of being stolen, however, you should check your home insurance policy to see if you workstation is covered to avoid having to purchase business insurance in addition.

Interruption Cover (insurance to protect your business turnover if you were unable to trade from home after a fire/peril)

Transit Cover - little to no risk as the services provided are online and not physical.

Money Cover - little to no risk as most online businesses transact completely online.

Risks that all Home Businesses have

Cyber Insurance - all businesses have a risk of a cyber attack that could result in malware, ransoms, and data breaches. A cyber insurance policy can pay for Cyber Theft, along with the IT costs associated with an attack. As our computers are the main way that we transact our business, cyber insurance is crucial to avoid any large expenses that result from a cyber attack.

by lauren

What Insurance Do I Need For My Business?

The type of insurance you need for your business will vary depending on what your business activities are. For example, the insurance an office will need will be completely different to a construction company.

There are insurances that are mandatory, such as workers' compensation, and insurances that you can choose to insure for depending on your perceived level of risk such as a business package. Either way, Insurance is the best thing you can do to protect your business and its financial future.

Workers Compensation

Workers' Compensation is mandatory for any business that has employees. Workers' Compensation protects employees from the financial burden if they were to get into an accident at work or fall ill and could not work. It can pay for any medical expenses, lost income due to time off work, and compensation for their injuries. The compensation will depend on the severity of the injury. Workers' Compensation Insurance is mandatory in all states and territories so it’s important to be familiar with your local regulations before hiring employees.

Public Liability

Public Liability insurance no matter the size is a crucial insurance policy to have. It protects businesses from claims brought against them for injuries, or property damage from third parties. It is designed to protect the public from the financial implications if they were to suffer an injury as a result of the negligence of a business. It is also designed to protect the business from being financially ruined in the event an accident happens and someone was injured or someone's property was damaged. It pays for the legal, defence and compensation costs.

Business Package

There are many sections to a business package policy that can cover to protect a business.

Fire & Perils Cover for a business will protect the physical assets such as the building, contents and stock from fire, weather events, impact damage, flood, power surge etc.

Theft Cover – Theft insurance protects contents and stock from theft and attempted theft. It can also protect the rental premise from damage.

Money Cover – Money Insurance reimburses a business if they’ve suffered a theft and there was money stolen. It does not cover electronic funds.

Business Interruption – Business Interruption is designed to protect the income of a business if the trade was disrupted by events such as fire, flood, storm, machinery breakdown etc.

Machinery & Electronic Breakdown – This coverage will pay for the repairs or replacement of electronic or motorised machinery. If you have business interruption selected, your business interruption could also pay the lost income as a result of the machinery item being out of use.

General Property – General Property will cover the portal items that you take away from the premise. It can cover fire, theft, flood, and collision.

Professional Indemnity Insurance

Professional Indemnity Insurance protects businesses that provide professional services for their advice, recommendations and overall services provided.

For example, businesses that provide advice for a fee

• Accountants
• Financial Planners
• Insurance Brokers
• Any occupation where reports and certificates of compliance are provided; such as Motor Vehicle Inspection services; Building Inspection Services

Cyber Insurance

Cyber Insurance should be highly considered with the frequency and severity of cybercrime currently. It provides cover for costs associated such as

• Financial Loss that you or a third party suffer.
• Data Recovery
• Interruption & Escalated costs to the business
• Fines & Penalties
• Notification costs

Motor Vehicle Insurances

Motor vehicle insurance is not mandatory, but it’s the insurance that almost all businesses won’t go without. This is because of the high frequency, high-value claims that are a result of a car accident. Morgan Insurance Brokers can provide cover for personal vehicles, business-use vehicles, and also fleets.

Depending on the size, scale, and activities of your business, all or only a few of these insurances may be crucial to the financial well-being of your business going forward. Contact Morgan Insurance Brokers to discuss your risks and have your business insurance tailored to meet your specific needs.

by lauren

Block of units Insurance - Things to consider when insuring your Block of Units

Finding an insurer that will insure a Block of Units can be challenging if you don’t know where to look. Fortunately, Morgan Insurance Brokers has a panel of Australian-approved insurers that will offer comprehensive insurance to protect your Block of Units. We will approach the market on your behalf and negotiate an insurance policy that is comprehensive and also affordable.

Who should insure a Block of Units?

Standardly, if you are insuring a Block of Units, you will be the single owner of the property. If there are separate owners of the units within the building, this would be considered strata insurance.

What insurance do I need?

When insuring your Block of Units, there’s a few things you should consider insuring.

Building - Insuring your building for replacement value is the most crucial part of insurance when you’re considering insuring your Block of Units.

Block of Units Insurance can protect you against events such as:

• Fire, including bush fire and arson
• Storm damage, including rain, hail, and wind
• Water damage from burst or leaking pipes,
• including overflowing
• Cyclone
• Flood,
• Impact damage, including from trees and vehicles

Tip - you may see building sum insured calculators for residential homes available, but these can not accurately calculate the cost to rebuild a block of units. We recommend engaging a professional builder, Valuer, architect, engineer, or other suitable qualified person to determine an adequate figure.

Contents/Fixtures and fittings General contents items, and Fixtures and fittings such as curtains, carpets, and blinds are not automatically covered when insuring your Block of Units. You should consider the cost of these per unit and ensure that your policy reflects this.

Public Liability Insurance

Public Liability Insurance is usually automatically insured under a Block of Units insurance policy. Public Liability under this policy is designed to protect the property owner for their responsibilities to their tenants. Third party personal Injury and Property Damage that you are found negligent for will be covered under this section.

Optional covers

When insuring a Block of Units, there are many additional layers of cover that you can consider insuring depending on how risk-averse you are, and what fits within your budget.

Loss of Rent Insurance

Loss of Rent cover can protect your annual rental income if your Block of Units were to be deemed uninhabitable by the insurer. It can look to reimburse you for the lost rent whilst your property was to be repaired or rebuilt after an insured event.

Rent Default

Rent Default insurance can protect your rental income if your tenant stops paying rent without providing written or verbal notice. It can protect your rental income from the date your tenant stopped paying rent until the date you secure a new tenant. Your tenant must have a rental agreement in force to be able to claim on this cover.

Theft by Tenant

If your property is furnished, Theft by Tenant cover is going to protect your items from theft by Tenant.

Accidental Damage by Tenant

Accidental Damage cover is not available with all insurers. It will cover damages to the building caused by the tenants, or their visitors. As accidents happen all the time, this cover is important to consider so be sure to read the terms and conditions of your policy.

Malicious Damage

Malicious Damage by your tenants or their guests is an important cover if you have tenants. It is standardly included under a Block of Units insurance policy.

How to obtain a quote for your Block of Units

Engaging Morgan Insurance Brokers to approach the market on your behalf is the first step to obtaining a comprehensive policy to protect your assets. We can source cover that will provide you peace of mind that in the event of an insurance claim, you’ll have a qualified insurance broker to manage your claim for the best outcome.

by Mojo Dojo

Are you getting the most out of your Insurance Broker?

Handle your Claims

Claims handling is a crucial service that Insurance Brokers should provide to their clients free of charge. What good is an Insurance policy that fails to respond in the event of a claim, that should otherwise be covered? Claims handled by Insurance Brokers have a greater rate of success, in comparison to individuals who manage their own Claims direct with an Insurance company. This is due to the Insurance Brokers' comprehensive knowledge of policies and policy wordings, not to mention their experience in handling claims of a similar nature on a daily basis.

Policy remarketing

Many Insurance Brokers will approach a panel of insurers that will respond to a single automated quote request, calling it a job done. An exceptional Insurance Broker will go one step further and also approach other insurers that are not on the panel, submitting an individual quote request with each one. This extra step gets you the most comprehensive and competitive on the market, rather than the most comprehensive and competitive policy on a select panel.

Effective time management

You should be contacted roughly 4-6 weeks out before policy renewal to be able to discuss any situational changes to your business that may impact your insurance policy for the coming year. This ensures that your renewal isn't rushed, and considers all components of your insurance program to ensure it will adequately protect you for the coming 12 months.

Tailored recommendation

A good insurance broker will not overinsure your business by recommending policy covers, or policies that you do not need. Similarly, at the other end of the scale, they will also not underinsure your business leaving you with gaps in your cover, or without a policy that you need. A good insurance broker will conduct a risk assessment that uncovers any exposures that could be mitigated with an appropriate Insurance policy.

Clarify your situation each year

A good Insurance Broker should ask lots of questions to gain further insight into your business. A quality Insurance Broker will not limit their questionnaire to a few questions, they will delve deeper into all aspects of your business to ensure that all of your activities are covered where possible.

Effective Coverage Summaries

A good Insurance Broker will be able to appropriately summarise the key features of your policy, and effectively communicate those that are most important to you. They will also communicate any situations or events that are not covered by your current or future policy, giving you an accurate understanding of your policy and the covers it provides for your business.

Acute response times

Communication is key! We all know that clear and timely communication is what makes any experience with a business that much better. A good Insurance Broker is one that responds promptly or gives notice to contact you within an appropriate time frame, not leaving you wondering for days as to whether or not you will hear back from them.

A detailed summary of your policy, not just the invoice

Have you ever just been provided with an invoice with no context behind it? Have you had to look through your cover and find out what exactly you're covered for? A good insurance Broker will provide a concise, jargon-free summary of your insurance policy so you have a quick understanding of what you are, and are not covered for.

Treat you as a person, not a number

A good insurance broker will treat you like you are their number one client, no matter the size, no matter the type of policy you hold with them.

Dedicated Insurance Broker/Account manager

Some insurance brokerages don't assign a dedicated insurance broker to policies that don't generate much income. If you fall below a certain threshold, you may not have a Dedicated Insurance Broker that will look after you. A good insurance broker assigns an Insurance Broker to each client, regardless of the income generated.

If you're looking for an Insurance Broker that meets the above standards, contact Morgan Insurance Brokers today.

by Mojo Dojo

6 Tips on how to save money on your Tools Insurance in Australia

Having tool insurance is important. Without your tools, you cannot work. Ensuring that you have adequate cover is crucial for your business to continue operation with minimal disruption, and also without the financial burden of replacing all of your tools in one go. Making sure your insurance policy is affordable is also very important. Here are 6 tips that can help you reduce your Tool Insurance premiums.

Look into the sub limits

On tool insurance policies, there are usually automatic cover for items under a certain limit. Standardly policies cover items automatically for $2,500 - $3,000.
By noting your tools on your policy that are this amount or less will incur additional premium unnecessarily. Only look to specify items that are higher than the automatic inclusions.

Look at increasing your excesses

A simple way to reduce the amount you pay on tool insurance is to increase your excess. An excess is a portion of the claim that you bare yourself. Increasing your excess from $250 to $500 per claim can reduce your premiums. Be mindful the higher the excess goes, the less the premium starts to reduce.

Selecting the correct sum insured

Tool Insurance is important. The sum insured should be the greatest total value of the tools at any one location. This single sum insured will cover you across multiple locations, even though the total value of the tools across multiple locations is greater than the sum insured. For example, if you have $5,000 worth of general tools in one ute at your address, and another $5,000 worth of tools in a ute at your employees address, you will only need to insure for $5,000. If a theft occurred at both addresses on the same night and your tools were stolen, this would be deemed as two separate claims as they were unrelated events.

Reducing your level of cover

Some insurers provide you with the option to limit your cover to just fire and perils, and collision cover. This can reduce your premiums but this would mean you wouldn't be insured for accidental loss, damage, or theft.

Combining your policies for a discount

Some insurance companies don't like to insure just your tools by themselves and prefer to insure your Public Liability Insurance and Business Package insurance as well. Combing your tools with a Public Liability or Business Insurance policy provides you with more options and potentially lower premiums. The insurers usually provide discounts on the tool portion if you insure other covers with them.

Shop around

As you can see above, there are many different options that you have to restructure your tools insurance policy to look at bringing the cost of insurance down. One of the simplest ways to reduce your insurance premium is to contact Morgan Insurance Brokers. We approach a large panel of specialist tool insurers on your behalf. This guarantees that you will be provided with the most competitive quotes on the market for your Tool Cover. Reach out to us today for a quote.

by Mojo Dojo