Does your Business Insurance still align with your risk exposures?
The risks your business faces are continually evolving – particularly in today’s fast-paced economy. Whether it be the purchase or sale of assets, new legislation, developments in technology, a modification of your business activities, or a change in operating location, it is crucial to ensure your Business Insurance program stays up-to-date.
Revisiting your Business Insurance program on a regular basis will ensure it accurately protects you against identified risk exposures, helping mitigate the financial impact on your business when things don’t go to plan.
Start your Insurance Health Check
To help determine whether your insurance program is sufficient to protect your business in a claim, follow our simple Business Insurance Health Check below. If any of these questions ring alarm bells, it might be time to revisit your Business Insurance Program. A downloadable version of our Insurance health checklist for business owners, is available at the end of this article.
Are any of the below areas of concern for your business?
1. Business Details
Does your business description accurately describe your business activities?
If your company decides to provide additional services, make sure the insurer is aware. A change or increase in services can affect your premium and coverage in a claim if left undisclosed.
Is your trading name / are all your corporate entities correctly listed on your insurance schedule?
Make sure all your corporate entities are listed on your insurance schedule to ensure they are protected in the event a claim is made against one of these entities.
2. Business Contents
Is your Contents Sum Insured accurate?
Have you purchased or sold any key assets? Inform your insurer or insurance broker to ensure your Contents Sum Insured truly reflects your assets and valuable possessions.
3. Public Liability
Does your insurance include cover for physical injury or damage to third parties?
Ensure adequate protection is in place to protect your business’ liability exposure for physical injury and / or property damage to third parties.
Public and Products Liability Insurance is designed to protect you and your business if you are found to be legally responsible (actual or alleged) for third party property damage or personal injury whilst acting in the course of your business activities, or through the use of your products.
Tip: Check your limit of liability is high enough per claim, or in the aggregate, to adequately cover your legal liability exposures.
4. Business Interruption Insurance
Is your Business Interruption cover sufficient?
If a large scale disaster e.g. fire, flood, storm disrupts your ability to operate at normal capacity, Business Interruption can cover loss of Gross Income and Wages for your selected indemnity period while you’re affected. It can also cover additional costs of working should you need to relocate to continue operating.
Is your indemnity period long enough?
We generally recommend an indemnity period of 18 months+. Reinstating damaged property almost always takes longer than anticipated.
5. Theft & Money
Is adequate security in place to prevent intruders?
Increasing your security measures can help reduce your insurance premium. It is also prudent to audit access cards and ensure none are missing.
6. Glass Cover
Do you lease your premises? Does your policy include cover for internal/external accidental glass breakages, or is this included in your lease agreement?
Ascertain who is responsible for glass cover – you or the property owner? You may be paying for cover you don’t require, or may be uninsured if you thought the property owner had cover.
7. Management Liability Insurance
Do you have Management Liability?
Management Liability is designed to protect you and your business against the responsibility and risk associated with running a company. Management Liability can cover you against claims for wrongful acts by directors (actual or alleged), dishonest acts by employees, harassment, wrongful dismissal and statutory fines and penalties. This cover is essential.
Do you run a criminal history check?
It is prudent to avoid hiring employees with a criminal history of embezzlement or fraudulent activities.
8. Professional Indemnity Insurance
Do you provide a professional service? If so, Professional Indemnity Insurance is essential.
Professional Indemnity Insurance offers protection should you or your firm have legal proceedings brought against you for an actual or alleged breach of professional duty. This cover is often a legal requirement for many professional services.
9. Cyber Liability Insurance
Cyber-attacks can debilitate any business. This makes financial protection against them vital.
Cyber-attacks are becoming increasingly common with Microsoft claiming that 20% of small businesses have been targeted by ‘malicious actors’.
Cyber Liability Insurance offers financial protection against data recovery expenses, reputational damage, business interruption and your liability exposures for privacy breaches. Cyber Insurance is a particularly important cover, as traditional business insurance policies, like a Business Pack or Management Liability Insurance policy exclude cover for cyber incidents.
10. Vacant property
Has your property recently become vacant during the policy term?
It’s important to notify your broker and/or insurer if your property has become vacant as soon as possible. There are certain risks associated with vacant commercial properties. For example, there are criminal risks where burglars and vandals could target your property.
Vacant buildings and properties are more susceptible to these risks as no one is on-site to report incidents. To mitigate any issues at the time of a claim, we must notify the insurer as soon as the nature of risk changes. This includes when a property becomes vacant.
Let your broker know as soon as circumstances change so your broker can arrange appropriate insurance.
Has this Business Insurance Health Check raised concerns about the adequacy of your insurance program? Speak to our team of Business Insurance specialists for a complimentary review, with key recommendations to ensure your insurance program is actively managing risks that could threaten the stability of your business.
T: 1300 424 627
E: info@whitbread.com.au
To download your Business Insurance health checklist, please click the button below.
This insight article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
