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Undetectable Defects: Are Your Fleet Vehicles at Risk?

Supply chain disruptions – shipping issues and computer chip shortages – mean there can be up to year-long delays in accessing new vehicles. It’s, therefore, important to keep your existing fleet well-maintained in the interim. 

In the long term, these practices will save your business money and unscheduled vehicle downtime. Research shows an optimised maintenance program (i.e. predictive and proactive) can cut costs, as well as boost efficiency and vehicle reliability.

Recent case – successful claim for ‘undetectable’ truck defects 

In a recent case, a truck driver, whose vehicle was a write-off when the front tyre blew out, causing it to crash, was successful in his insurance claim for losses. But he had to take it to the Australian Financial Complaints Authority (AFCA).

The insurer had pointed to a policy exclusion, saying the front tyres’ defects rendered the truck unsafe and unroadworthy and should have been picked up in standard inspections. However, the driver and his parent company, said the truck was regularly serviced. The previous service was just six weeks before the accident. They claimed the fault could not have been “reasonably detected” beforehand.

AFCA said while the defective tyres caused the crash, the claimants had taken appropriate steps to make sure the truck was in good condition, citing regular servicing and pre-trip checks. Curious to learn more? Here are the full AFCA determinations.

The case is a handy reminder to ensure your business has a proper vehicle maintenance approach. 

Steps to keeping your fleet healthy

Follow these tips to keep your fleet in the best condition possible:

  • Align your maintenance schedule with the manufacturer’s guidance on servicing in mind
  • In between servicing, check engine, brake and radiator fluid levels
  • Have drivers follow a pre-trip inspection list 
  • Ask trained maintenance staff to do yard checks
  • Check tyre pressures at least monthly so they’ll wear more evenly and the vehicle will use less fuel
  • Track fuel use, such as with fuel cards and GPS trackers, to discourage staff from speeding and taking needless detours
  • Regularly see if the lights are working. If your staff often hit kangaroos, boost the headlights and consider adding a bull bar.
  • Train your drivers on the importance of not driving too fast and therefore breaking too hard, which will shorten the vehicle’s life and cost your business more, and
  • Build preventative maintenance and refresher training into your technicians’ role, particularly about new technologies.

The new ‘oil’ for your fleet

As a fleet manager, you may be overloaded with data about your vehicles. 

Australian companies surveyed for a global Salesforce survey about data management admitted difficulty interpreting their data. About 45% said they couldn’t understand it because of complexity and poor accessibility. More than a third couldn’t generate insights from the data their systems created and collected. 

Consider investing in advanced fleet maintenance that lets you use a bar-code inventory system to track parts and re-order when required. Such systems will help you become more proactive in optimising your approach. And to see what else is on the horizon for fleet maintenance, read about this year’s trends.

A better idea of the fleet data would help you understand that staff who use your work vehicles will have different driving and usage habits. This typically will lead to more wear and tear. Ensure the vehicle is the right type for the job.

Review your commercial car insurance

As well as the tips above, securing the right commercial vehicle insurance is a good risk management move. It’s tailor-made for cars or other vehicles used for or by a business, including personal vehicles used for business. And it’s tax deductible. 

Typically, commercial vehicle insurance offers cover for businesses and their drivers, including for:

  • Liability coverage for repairs and/or medical fees incurred by the other driver in the event of an accident
    • Own damage cover, for the same, but for you or your vehicle.
    Talk to us for more guidance, including advice on the best-fit policy options for your unique business.

Mould: When Is It a Landlord or Tenant Problem or Both?

Mould and dampness affect up to half of Australian homes. Could your investment property be one of them?

To grow, mould needs moisture, heat, darkness and poor airflow. It’s a year-round concern for landlords in Australia’s tropics. Elsewhere, mould can appear at any time if the micro-conditions are right. 

As we’re at the tail end of La Niña  #3, it may be an issue for your investment property. Mould is usually visible and can damage building structure, materials and content. It can also create or amplify a range of health issues for those exposed to it. 

Here’s a rundown of state and territory governments’ advice on mould, including removal.

Is mould claimable?

Typically, most insurance policies will cover mould damage arising from or due to an insured event, such as:

  • Burst or leaking pipes
  • Storm or flood damage
  • Wet area leakage, including from shower recesses
  • Leaking appliances such as hot water services, dishwashers, refrigerators and toilets.

Once an insurer has verified an insured event has led to the damage, they’ll then need to establish there’s mould and what caused it. They’ll use a mould expert – a mycologist – for testing and insights into the possible cause(s) and source of the mould. Here’s an insight into their work and mould risks.

However, most policies explicitly exclude damage caused by mould, such as rising damp. This means insurers often won’t cover you for mould damage when it’s the primary or proximate cause. 

Recent cases 

Late last year, the Australian Financial Complaints Authority (AFCA) rejected a landlord’s claim that a storm had damaged a rental property leading to mould appearing, repair costs and loss of rent. 

The insurer’s builder had been unable to find evidence the storm had damaged the roof, so there was no proof of a water entry point. Instead, leaves in the gutters and around the solar panels had caused dampness, leading to mould growth inside the home.

Therefore, ACFA determined it was due to the lack of property maintenance not the storm for the damage. Find out more from the ACFA’s full ruling.

In another recent case, a building owner’s negligence in not repairing leaks led to a tenant experiencing a total loss of her contents. ACFA ruled it was not the tenant’s responsibility to be aware of water coming into the property and causing mould. Her insurer was ordered to pay her $76,690, the amount for which she had insured her belongings. You can read the full determination here.

Meanwhile, ACFA also awarded landlords thousands of dollars in their claim for loss of rental income against an insurer. The latter had incorrectly determined their four mould-filled properties in Melbourne were habitable because only the basement was water damaged.

When is a landlord responsible?

In short, your obligation is to ensure the rental property meets health and safety laws and bylaws, is in a reasonable state of repair and you don’t delay repairs unnecessarily.

Landlords are responsible for addressing mould issues if it’s due to structural issues or poor maintenance/repair, including:

  • A faulty pipe or indoor plumbing leaks
  • A leak in the roof
  • Surface water leaking into the premises
  • Rising damp or other wet building foundations
  • Exhaust fans or wall-mounted reverse cycling units that don’t work
  • Malfunctioning gutters, including due to leaf debris, so water overflows into the home.

When is a tenant responsible?

Tenants are responsible for dealing with mould issues if it’s due to them:

  • Not adequately ventilating the property, such as neglecting to switch on fans while showering or opening a window
  • Leaving wet towels on the floor
  • Not cleaning the home
  • Leaving water to pool on tiles, or not cleaning up spills properly such as on a carpet
  • Cooking without switching on the extractor fan
  • Drying clothes on a hoist or in a drier indoors without then airing the room
  • Leaving doors and windows open during rain events
  • Avoiding wiping condensation from windows and walls
  • Storing books or cardboard boxes in bulk, for instance, in a damp space.

Tenants are also responsible for noticing mould growing in their wardrobe, for example, so they don’t leave their clothes there. This ensures they minimise their losses.

And while one of the ACFA rulings above may create uncertainty about tenants’ obligations to tell landlords of water issues, tenants should tell you or the property agent when there’s an issue. For instance, if there’s a leaky pipe, a slow draining toilet, a window that won’t shut properly, or signs of mould or dampness.

Admittingly, for mould issues, there are a lot of grey areas. That’s why we are here to help you with your landlord or other insurance-related queries. 

Does Your Insurance Cover All of These Construction Risks?

Construction industry risks are increasing exponentially. And the factors (operational, environmental and contractual) could be internal or external to your business.

This article covers the common risks and guides you on risk management, with a reminder to review your insurance coverage.

Safety hazards/worker accidents and injuries

Safe Work Australia lists high rates of fatalities by occupation: 8.2 deaths per 100,000 for machinery operators and drivers; 2.9 per 100,000 for labourers. The stats are slightly better by industry: 2.1 per 100,000 for construction. 

As for serious claims, construction fares worse – 17 serious injury claims per 100,000 workers. Overall, body stressing, such as through manual handling, caused almost four in 10 serious claims. Falls, slips or trips resulted in about a quarter of serious claims. Limb injuries account for 58% of serious claims. 

Safe Work Australia resources details risk control measures, emergency plans, safe work method statements and high-risk construction work measures.

Also, check the icare Foundation’s joint project involving virtual reality training to address these safety challenges for construction workers:

  • Factors that lead to young and inexperienced workers’ unsafe behaviours and accidents
  • Site supervision and project management issues that lead to accidents and injuries
  • Workplace cultures, systems and other organisational factors that lead to accidents and injuries in the sector.

Consider how your business could improve how it deals with those challenges. Meanwhile, another study found that a five-day workweek boosted construction workers’ well-being.

Labour shortages

Australia will be short of 100,000 construction workers by next year, according to the Arcadis Construction Costs Index Report. Try these approaches to become a standout would-be employer:

  • Assess what sweeteners you can offer – higher pay, half-day Fridays, longer paid holidays, training opportunities, work culture and other perks for employees
  • Sharpen your job ad by detailing specific duties, required and desired skills and qualifications and benefits
  • Seek advice from your industry associations regarding which job boards generate the highest traffic
  • Tap into your network and communities regularly to seek referrals, raise your profile and hopefully drive leads your way to fill your vacancies. Keep veterans, mature-age people, women, and career-changers on your radar, too
  • Partner with a group training organisation to benefit from their wider networks, access to grants, etc., to recruit and manage apprentices for you

Damage or theft to equipment & tools

Most equipment, material and tools theft occur onsite via forced entry or cut locks; the next highest category is theft from vehicles. Stay a step ahead with these tips:

  • Befriend the neighbours so they can alert you if something’s array 
  • Invest in heavily weighted panel-style fencing if timber hoarding isn’t in your budget 
  • Affix a sign with a mobile phone number for after-hours contact 
  • Illuminate entry and exit points at night once the power is connected. Investigate solar-powered motion security lights, too, such as these from Kogan
  • Erect temporary mobile security cameras that you can access via a smartphone app
  • Avoid stockpiling your supplies on site
  • For a house project, for instance, build the garage to the lock-up stage to secure supplies there
  • Arrange for alternative portable storage, such as heavy-duty site cabinets or boxes with tamper-resistant locks
  • Engrave your name, number and, in a hidden place, such as the battery pack slot, a unique mark on your power tools

Increasing material costs

Signing a fixed-priced contract can squeeze margins with increasing materials costs. Here’s how to tackle these risks:

  • Review existing contracts for wriggle room to claim extra costs due to these price increases
  • Check the extension of time regimes as they may accommodate shipping delays or material shortages that trigger price rises
  • Be mindful that off-the-shelf master builder contracts don’t often allow you to claim extra costs for pricier materials, so consider carefully drafting additional clauses to address this
  • Aim to index prices as a form of forecasting as an approach to dealing with price rises
  • If you have subbies work for you, be alert to claims for extra time relating to delayed materials or cost increases. Ensure they’re substantiated.

Contract works insurance

Given the wide range of risks that builders, tradies and subcontractors face, there’s a good range of insurance policies available. Usually, the key contractor and your financial institution will contractually require you to have such a policy. Known as contract works or construction works insurance, it can cover:

  • Material damage
  • Legal liability and legal fees resulting from personal injury or property damage to third parties
  • Accidental physical loss or damage
  • Fire
  • Theft
  • Malicious damage
  • Cyclones, storms, hail, floods
  • Accidental damage.

Contract/construction works insurance covers events that happen to your building project during construction. Consider optional extra cover for materials in storage, located offsite, and in transit, as well as for plant and tools. 

We can help suggest a customised insurance package that meets the unique needs of your business.

4 Myths about Cyber Insurance Debunked

Cyber security is a top risk management concern for Australian businesses, with eight in 10 organisations hit by ransomware. And research shows small businesses are likely to have poor security practices due to common misconceptions about the threat.

It is such a hot issue that the Federal Government appointed the first Minister for Cyber Security in a G20 country last June – Claire O’Neil has the role. The government is also investing $1.67 billion until 2030 as part of its current Cyber Security Strategy

But small businesses will still need to do their bit in identifying and dealing with cyber risks in their quarters. Start by adopting these ‘quick wins’ for small businesses, including for your portable devices, website, end-of-support, and password manager.

Start by checking your assumptions about your insurance coverage for cyberattacks. We outline the top four myths below. 

Myth #1: Cyber coverage is just for business technology

Cyber insurance covers ‘network and privacy liability’, so it’s not just about the data stored on your company computers. Cyber security policies typically cover costs associated with the following:

  • Data breaches including theft or loss of client information
  • Network security breaches
  • Business interruption 
  • Forensic investigation into the cause or scope of a breach
  • Data recovery 
  • Cyber extortion
  • Crisis management 
  • Loss and legal costs, including fines and penalties resulting from a third party claim for data or network security breach against your company

Myth #2: My general liability policy will protect my company.

General liability cover relates to third-party claims for bodily injury or property damage due to your company’s negligence. It generally won’t cover a third party’s financial loss. 

Myth #3: Cyber insurance is unnecessary. We invest in IT security…

IT security won’t protect you from all risks of hacking or human error – the risk exposure remains. And hackers are one step ahead, even using the artificial intelligence app, ChatGPT, to write malicious code

More galling is that last year it took an average of nine months to identify and contain a cyber breach, according to IBM. Their report found the average data breach cost for any sized Australian company from their sample was $2.92 million in 2022. This makes our nation the 11th highest of 17 countries surveyed for cyber breaches. As for small businesses, the average cost of a cyber strike is about $10,000, according to the Australian Small Business and Family Enterprise Ombudsman.

If the worst happens and a hacker gets in, or a rogue staff member lets you down, what next? Companies that don’t take proper care of customer data face increasing penalties under the Privacy Act. Find out more about this issue from Coulter Legal.

Myth #4: We don’t collect personal data, so cyber insurance isn’t for us

Think again. Ransomware can enter your business through funds transfer fraud, business interruption and system damage. They involve sensitive data your company might collect. Other examples include:

  • Business-critical activities
  • Electronic banking involving payment redirection as well as false billing scams
  • Employees’ personal data
  • Compromising emails
  • Intellectual property, and
  • Mobile phone ransomware attacks.

Your guide by the side

Research from RMIT University suggests that small business characteristics, such as agility, large cohort size, and piecemeal IT architecture, could allow for increased cyber security. The study points to small businesses forming alliances and the open-source code community helping the sector build its defences against attacks.

Part of your defence involves best-fit insurance, and we’re here to demystify the fine print about your best option. Reach out to make sure you have a comprehensive cyber insurance policy in place for your business. 

It’s usually a stand-alone policy that fills the gaps in your other coverages. Cyber insurance offers breadth and depth, including access to incident response expertise, and we’ll draw on our experience to fast-track your claims.

If you Home Share, Check your Personal Property Cover

As of September last year, there were 251,000 short-term rentals registered across Australia, down from 400,000 pre-pandemic.

However, not all short-term stays are registered. If you rent out your main residence, this article is for you. We’re sharing a swag of tips to help you manage your risks.

Understanding property insurance

To help protect your home from multiple risks, you can take out building insurance (if you own the premises) and home contents cover. Often the policies are bundled together for your property.

Your home’s physical structure, plus fixtures, is what building insurance covers. Fixtures typically include:

  • TV mounts
  • Built-in wardrobes
  • Shelving units and cupboards
  • Solar panels
  • Clothesline
  • Plugs and sockets
  • Ceiling fans and air conditioning units
  • Floor and wall tiles, fixed carpets
  • Inground swimming pool
  • Plumbing and heating systems
  • Kitchen and bathroom units
  • Light fixtures and other permanently wired electrical appliances.

Meanwhile, contents insurance generally covers the rest, including fittings and possessions, such as:

  • Furniture
  • Whitegoods
  • Curtains and rails, blinds
  • Ovens/stoves
  • Standalone barbecue
  • Outdoor TV or stereo.

Policies can vary though, so be sure to check with us. Generally, insured events include natural disasters, theft, fires and legal liability.

How home-sharing impacts personal property insurance

If you share your abode, then standard home and contents insurance may not be suitable. It comes down to what your insurer regards as ‘occasional’ stays and what you declare as your principal residence. 

Typically, occasional means accommodation for one day to six months at a time with no tenancy agreement. Some home and contents policies exclude coverage for longer home-sharing.

Or, if you’re a renter and have housemates, for instance, they’d have to all be parties to the same insurance policy. But the odd insurer will offer individual cover for shared homes. If you opt for that, it will only cover your items anywhere on the property, but not your housemates’ possessions. Of course, if your housemates steal or damage your belongings, the policy won’t cover that.

Insurers tend to consider you a’ host’ if you use a platform or go private to share part or all of your main residence for a fee. That’s whether or not you’re living in the home at the same time as your guest. 

That’s distinct from being a landlord. Landlord insurance would be appropriate when you don’t live in the property, and it’s not your principal residence, but you lease it out either long or short-term. Landlord cover is for holiday homes and investment properties, so can be for any length of time.

Home-sharing platforms, such as Airbnb, Stayz, and Homestay etc., may offer you guarantees or insurance to bridge the gap in cover. 

Another option to give you more peace of mind is to consider extending your cover.

Additional coverage options (short-term stay)

Short-term rental insurance applies if you only let out your residence for short stays and not while you’re also living there. So, it’s not your principal place of residence. It’s the right cover for short-stay accommodation rented through a real estate agent or platform. These accommodation types include:

  • Holiday house
  • Serviced apartment
  • Investment property. 

A short-term rental policy generally covers:

  • The building structure, including fittings
  • Contents – fittings and fixtures
  • Non-fixed items (e.g., bicycles, furniture, books, appliances, beds, barbecues etc.)
  • Insured events, including glass breakage, theft, fire, water or storm damage
  • Accidental or malicious damage
  • Cancelled bookings due to damage by a tenant or an insured event
  • Legal liability should guests become injured on the property.

Next, we’ll offer suggestions on risk management that complement a short-term stay insurance policy.

Tips for home-sharing hosts

These tips come from the Sydney-based Padlifter, a global marketplace of short-term rental service providers. Here’s how to make home-sharing safer for you and your guests:

  • Have keyless door locks so you don’t need to be present when a guest arrives. This lessens the risk of lost, copied, shared or damaged keys
  • Create an emergency exit plan with relevant emergency services phone numbers. Make the plan part of your welcome pack, and affix copies to the front, back and bedroom doors of your home
  • Install fire-safety devices, including smoke detectors, fire extinguishers and blankets. Store flammable cleaning products and aerosol cans away from flames
  • Check your state or territory’s tenancy laws (such as this one for NSW) about the need to do annual smoke alarm and gas safety checks
  • Stock up the first aid kit, ensure it’s accessible and point out its location to guests. This helps protect you against their claims of negligence or liability
  • Provide house rules about acceptable behaviour
  • Invest in security monitoring gear such as door and window sensors, noise level monitoring, etc.
  • Only communicate with guests via the private messaging platform if you’re using one.

Talk to us to clarify you have the coverage and protection you need.

How do you Manage these Top 4 Hospitality Business Risks?

The past three years have been a whirlwind for hospitality businesses. While the pandemic seems to be on the wane, your business should still do everything reasonably practicable to reduce the risks of COVID-19’s spread, like keeping up to date on employers’ responsibilities via this Safe Work Australia website.

Other, more inherent risks remain, though. A global report examining risks in the sector found that less than three in 10 businesses surveyed felt the root causes of their risks were somewhat or completely under their control. Yet, just a quarter of business owners had the data or knowledge to tackle their risks.

Whether you own a restaurant, pub, bar, nightclub, café, coffee shop, hotel or resort, four insurance policies help protect your business against the many risks.

Public & products liability insurance

Public & products liability insurance offers your business protection against negligence claims from third parties. That comprises members of the public, patrons, visitors and contractors, etc., to your workplace. It does not include you or your staff. 

This policy – also known as combined liability cover – can help with the following:

  • Legal costs
  • Expenses incurred giving others first aid
  • Medical expenses as well as damages
  • Compensation for customers’ property that your business damages or destroys.

The types of risks that could trigger this cover include:

  • Slips, trips and falls
  • Food contamination
  • Hot spills
  • Psychological injuries
  • Injuries or damage to third parties. For example, an airborne sign injuring a passer-by, a customer, or even a pet.

Even if the third party can’t prove your company’s negligence, you’ll still be out of pocket for defending the claim. That’s where public & products liability insurance is needed to protect you and your staff against claims of negligence, even if it’s accidental.

Workers’ compensation insurance 

Your business must have workers’ compensation insurance whether your workers are unpaid trainees, apprentices, part-time, or casual or permanent full-timers.

It means financial compensation is available for staff injured at work or who become ill due to their work. That’s whether you, as the employer, were at fault or not. Compensation covers their wages, medical expenses and rehabilitation while they’re not fit for work, according to the Fair Work Ombudsman.

Work health and safety laws differ in each state and territory, so find your relevant authority via this official site.

Business interruption insurance

Unexpected interruptions to your operations can hit your company’s bottom line and threaten your survival. One insurer survey found a quarter of small businesses said they would close if they couldn’t operate for three months.

You can manage this risk with business interruption insurance. Here’s how it can cover you:

  • Fund your operations if you’re rebuilding and waiting for plans to be drawn, council approval or having trouble securing builders
  • Your costs to find and fit out new premises and advertise your opening date to customers
  • For wages of your key staff until you open
  • When other businesses you rely on, such as suppliers, are disrupted
  • Limited operations due to the cutting of power or gas supply.

There is a wide range of insurance policies available. While they may look similar on the surface, delve into the fine print, and you’ll find quite a few differences. We can familiarise you with options customised for your unique business to support its resilience. 

What do you Risk by Choosing a Lower Level of Insurance?

It’s easy to assume all coverage is equal when it comes to finding your best-fit insurance. But choosing opting for a low level of cover may end up costing you more in the long run.

It’s also important to consider:

  • Is the insurance cover aligned to the unique risks of your business?
  • How quickly will you be able to resume trading following loss or damage, and will your insurance cover assist you to resume trading in a timely manner?
  • What natural disasters is your business exposed to and will your cover adequately respond?

The responses will help you work out if you’re receiving the level of coverage you need.

You may not have complete coverage

If you source a quote from a comparison website, chances are it’s just for ‘basic’ coverage. Often, personal insurance comparison sites won’t directly sell the insurance and will direct you to the insurer’s website.

Adding extra cover means the quote will grow and, without assistance, can become a time-consuming process. We can help to make sure your business has the appropriate coverage for your specific risks.

You might be underinsured

It’s estimated that between 70-80% of businesses are underinsured. This can lead to out-of-pocket expenses when replacing business equipment or repairing/rebuilding commercial premises. Insuring for your business’s true value is the best yardstick. Your cover should reflect the true replacement value of stock, equipment and building/s.

Be sure to check your policy for maximum claim limits, exclusions, and coverage for mobile devices when you’re away from the workplace. Should your business be in a disaster-prone area, read the policy fine print about floods, fires and storms, too.

Without a proper assessment of your business, you run the risk of subpar coverage and potentially significant additional expenses in the event of a claim.

Lower premiums may mean a higher excess

There’s an inverse relationship between premiums and excess – lower premiums generally bump up the excess you’ll have to pay at claim time. The good news is you can negotiate to change your excess to suit.

Often, taking a higher excess to lower the premium is perceived as a saving on insurance costs but, when you do make a claim, you will have to pay more towards it. In the event of multiple claims, the originally low costs can skyrocket.

It’s safer to overestimate your needs

It could devastate your livelihood should your business be hauled through the courts to defend itself against an allegation, whether proven or not. Your legal bill could be thousands of dollars and a settlement, if you have to pay one, could surpass your policy limits.

You could be out of pocket if you’ve only opted for minimum insurance coverage. That’s why a commercial umbrella policy makes sense for larger corporate risks, while smaller businesses should ensure that they have adequate public & products liability, management liability or professional indemnity insurance and consult with us. It will come into play when the costs of your business liability lawsuit shoot past your policy’s existing limit.

Gain peace of mind with an expert

You may think you’re saving time by choosing the first coverage on your search page, but insurance policies are complex. These contracts often run to 100 pages in legalese about inclusions, exclusions, etc. However, we can talk with you about your needs, get insights into your risks to customise a policy package suited for you.

We understand risk management and always check the fine detail of insurance policies to compare them. We’re quick to point out if you’re paying too much for the insurance you need. As well, we’re handy to have onside when it comes to policy renewal – and review – time as well as when you need to make a claim.

Myth Busting SMB’s Top 3 Insurance Misconceptions

Only about four in 10 Australian small and medium-sized businesses (SMBs) surveyed in 2022 had confidence they were fully covered for insurance risks in their operations. 

Meanwhile, about a third had no plan to minimise risks. 

This article tackles three insurance myths that persist among SMBs.

Myth 1: Your business is too small to need insurance

SMBs can mistakenly believe they’re immune to a Pandora’s box of possible risks due to their:

  • Size
  • Number of staff
  • Revenue
  • Storefront size, if they have physical premises
  • Assumption their home and contents insurance covers their home-based business.

However, despite those factors, SMBs still must manage risks such as:

  • Fire, flood, storm, etc. damage to or destruction of business premises 
  • A customer taking legal action against your product, service or professional advice, or for injuries sustained at the business premises such as slipping or tripping
  • Business interruption, including supply chain bottlenecks, that creates cashflow issues
  • Work, health and safety for employees
  • Compliance with regulations and laws
  • Online risks, scams and cyber security risks
  • Breakdown or theft of equipment or a vehicle, for instance, that are crucial to your operations.

Myth 2: My subcontractors have their own cover, so I’m safe

Your subcontractor’s policy may only cover their liability, not yours, but their policy will likely cover them damaging the property of one of your clients, or doing below-standard work, for example. 

It pays to ensure that the business has adequate insurance coverage and that contractual terms between the parties allows for recovery. First, verify they’re appropriately licensed and have suitable references. Ask them what insurance they have – it needs to be at least as high as yours for professional indemnity and general liability. Ensure they also have workers’ compensation if they employ people.

Be sure to have a written agreement with your subcontractors to ensure they are responsible for the quality and performance of their work and materials and how you’ll engage them. This will be useful to indemnify you if a claim is made, however be careful that you don’t waive any rights of recovery against them or assume additional liability as this may breach your policy terms and conditions. By checking their work before you give it to your customer, you’re showing a duty of care.

Myth 3: General liability insurance covers everything

General liability sounds like a catch-all phrase for risks, but it does have limitations. Here’s what general liability insurance may cover:

  • Claims for third-party bodily injury or property damage due to your business activities
  • Third-party injuries and property damage
  • Product liability claims.

A standard general liability insurance policy won’t protect you from all damage. Those excluded from the policy typically include loss or damage due to:

  • Intentional acts or criminal negligence
  • That which flows solely from contractual obligations
  • Professional malpractice
  • Libel and slander claims
  • Environmental pollution

Research shows policy coverage and language differs between insurers. Check with us to find the best policy customised to your needs and circumstances. 

Protect Your Farm Against Animal Theft: Here Are Our Tips

The value of farm animals can reach astronomical heights – last year, a 13-month-old Wagyu heifer sold for $400,000 at an auction in Melbourne.

While your stock might not fetch that kind of price, your investment in breeding and care can go to waste if you don’t minimise the risks of theft.

Livestock theft happens more than you think

Research consultancy PwC estimates 28,400 head of cattle are stolen annually in Australia.

In the two years to August last year, $8.5 million worth of cattle were stolen in NSW. Thieves risk up to 14 years in prison if convicted of stealing, or killing, cattle with intent to steal its carcass, skin or another body part.

University of New England survey of NSW and Victorian victims of farm crime found respondents had high levels of concern, but low to mid-levels of confidence in the police. 

However, NSW’s introduction of full-time rural crime prevention officers is helping improve these attitudes. Farmers need to be aware of those officers, though. The survey found two-thirds of Victorian farmers had no idea these officers existed in their state.

New initiatives for an old problem

Technology offers solutions to animal theft and, as a bonus, can boost productivity. For example, a recent Australian innovation uses smart solar-powered animal ear tags that connect to a satellite via GPS. It allows farmers to track animals on the move, locate them and reveal if they’re giving birth or unwell. You can monitor this via your mobile phone, laptop or other electronic devices.

But a competitor system is a step up. The iTRAK system, a joint venture of the US-based Optibrand LLC and Geelong-based FoodFibre Trace, actually scans the animal’s retina. The system integrates with existing electronic IC-management tags that link with livestock management software, too. Another biometric tech option is from the Singapore-based AnimalEYEQ.

Video surveillance also boosts security, giving remote monitoring of your farm and alerts in real-time, such as with farmdeck.

Secure your property

Closing gates isn’t enough, ensure there are steel chains and secure locking devices on sheds, stockyards and paddocks. Check your gates can’t be easily lifted off their hinges.

Cattle rustlers aren’t always the only culprits, others may also trespass onto your property to ‘liberate’ your animals. Trespassing fines vary across the country, they’ve become tougher.

To thwart trespassers, farmers can:

  • Erect warning signs about dogs and alarms on site
  • Say the property has identification marks
  • Install physical barriers
  • Network with neighbours to keep a watch out for would-be intruders
  • Record activities, such as photographing and video recording vehicle registration numbers and faces of people and vehicles on your property (check out the law here, too), and
  • Ask trespassers to identify themselves, why they’re on your property and tell them the police will be called if they refuse to leave.

Insure your livestock

You can also minimise the risk of theft by investing in livestock insurance. Policy options include:

  • Farm property, which helps protect against fire, lightning strikes, malicious damage, and more, to livestock
  • Full mortality livestock cover for disease, illness and accidental damage, and
  • Stud stock insurance for individual animals covering defined events such as illness, disease and full loss of use.

Talk to us, as your broker, about which option best suits your needs. We can also share more risk management tips and shed light on market value insurance. Let us guide you on protecting a key part of your farm’s assets.

Here’s Your Friendly Nudge To Update Your Home Insurance

Renovating or decluttering your home, or a change in circumstances, could introduce risks that your insurance policy may or may not cover. Plus, insurers may tweak the fine print of their policies due to changes in risks and the insurance market.

This article explains when and how to review and update your policy to ensure the coverage is right for you and your assets.

Annually

When reviewing your insurance cover, aim to start from scratch to avoid making assumptions about risks.

An estimate of the current value of your home is helpful but not the only factor used in working out the coverage required. That’s because building insurance covers you for repairing or replacing your home at your address rather than buying a new house on its own plot of land. Meanwhile, contents insurance covers your belongings.

It’s good practice to get in the habit of checking your insurance policies at the start of the year. Ensure you also review your coverage when your circumstances change.

When renovating

The renovations that could mean you’ll need to update your coverage include the following:

  • Expanded footprint of your home, such as extending a family room or adding a bedroom, for example
  • Added higher-quality finishes to the house
  • A new garage, shed, pool, carport, etc
  • Erected a new fence
  • Invested in new furniture or art
  • Recarpeted floors and bought new rugs
  • New blinds (internal and external) and curtains and other window treatments
  • Installation of a new dishwasher, stove, air conditioning, and heating.

Before you renovate, speak to your contractor about insurance coverage. They may want to buy building materials when available due to supply chain issues and escalating costs. As such, you may have to store these on your property. Check with us to find out whose insurance covers damage to or theft of these materials.

You will also need to speak to your insurer to confirm whether your current policy will respond while the renovations are being undertaken.

Rising home values matter

Perhaps you haven’t physically changed your home. However, fluctuations in house prices have affected the groundswell of the residential property market. If the value has increased, you may be underinsured; if it’s decreased, you could be paying too high a premium.

There are pros and cons to each of these options to value your property, according to the independent consumer organisation Choice:

  • Sale price
  • Real-estate agent quote, also known as a market appraisal
  • Domain.com.au property profile (or from one of its competitors)
  • Open agent (powered by Core Logic)
  • A bank’s automated property profile report
  • Independent pre-purchase market valuation by a certified practising valuer.

Revisit your policy to see if you’ve opted for ‘sum insured’ – your cost estimate for rebuilding your home after a major disaster. The other option is ‘total replacement cover’, the cost to repair or rebuild your home to the same standard, advises MoneySmart.

Not all insurers offer both, and total replacement cover tends to be pricier. So, if you’re using the ‘sum insured’ estimate, we can check if your insurer offers a safety net of up to 30% if your home is totally destroyed. Insurers under the General Insurance Code of Practice must provide you with access to a calculator that will assist you to estimate your sum insured.

When you do a cleanout

If you’re using the festive season to declutter your home, it’s also time to tidy up your insurance coverage. You may have less to insure. For example, if people have moved out of your home, such as housemates or adult children, the total value of your home contents may have shrunk. It pays to update your policy as the premium may drop.

We can help you review insurance

The insurance market is fluid and we can review your policy with you. This includes checking your current policy’s fit with your needs for:

  • Inclusions and exclusions
  • Excess – also known as deductibles – you agree to pay
  • Maximum claim limits
  • Coverage for mobile devices when you’re not at home
  • ‘New for old’ replacement value
  • Damage due to storms, floods and fires if you live in a disaster-prone area
  • If another insurer’s policy might be a better fit for your current circumstances.

Save time and possibly secure a reduced premium using our expertise to help check your insurance coverage.