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Feb 18
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What are the biggest business risks in 2024?

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Staying secure in today’s ever-changing business world is crucial. The Allianz Risk Barometer 2024 sheds light on emerging threats businesses must navigate and we provide a top line update of the key, emerging risks for 2024.

Cybersecurity Battles Rage On:

Cyber incidents (ransomware, data breaches) remain the top concern for the third year running. New attack methods and a lack of cybersecurity expertise demand stronger defenses.

Business Interruptions Bite:

Supply chain disruptions continue to worry businesses, emphasising the need for robust continuity plans.

Natural Catastrophes Strike Back:

Record-breaking weather events in 2023 propel natural catastrophes to number three, highlighting climate change’s impact.

The Resilience Gap Widens:

Larger companies invest in resilience, while smaller businesses often lack resources, hindering recovery from unforeseen events.

Regional Risks Emerge:

Climate change worries Brazil, Greece, Italy and Australia, while political risks gain ground globally.

The Path to Security:

Proactive risk management – from cybersecurity to supply chain resilience and climate preparedness – is vital for business continuity and growth.

Protect Your Business:

Contact on of the Insurance Mentor team for professional advice and tailored insurance solutions to help navigate the evolving risk landscape.

(About the Allianz Risk Barometer)

This annual ranking by Allianz surveys over 3,000 risk professionals, offering valuable insights for businesses worldwide.

Sep 23
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Plan and be prepared this bushfire season

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Australia is renowned for its expansive and diverse landscapes, but unfortunately, it also grapples with extreme weather conditions, including bushfires that wreak havoc in the scorching and dry summer months. Even in this early spring of 2023, several regions of Australia have already confronted ‘catastrophic’ fire conditions, with more ominous forecasts looming.

Given the unpredictable nature of these fires, driven by warm winds emanating from central Australia, homeowners and property custodians across all states must prepare diligently for the looming possibility of a bushfire, regardless of whether they reside in recognised ‘bushfire zones’ or not. We outline practical measures to be ready for what looks to be another hot and dry summer season.

  1. Risk Assessment and Planning.

Start by understanding your property’s bushfire risk. Conduct a thorough assessment of your property, taking into consideration factors like proximity to bushland, vegetation density, and accessibility for firefighting services. If you live in a ‘bushfire zone’, be aware of the Fire Danger Ratings and Total Fire Bans issued by local authorities.

  1. Document and inventory your possessions.

Create a detailed inventory of your possessions, including photographs or videos and most importantly receipts (scanned and kept electronically). Store important documents like insurance policies, identification, and deeds in a fireproof safe or a secure off-site location. This documentation will be invaluable in the event of a claim.

  1. Invest in basic fire equipment.

All state based emergency services advise having an emergency survival kit packed before bushfire season begins. Essentials include:

  • Portable battery-operated radio and waterproof torch with spare batteries
  • Candles and waterproof matches
  • First aid kit and manual
  • Pocket knife and woollen blankets
  • At least three litres of water per person
  • A list of emergency contact numbers
  • Waterproof bags ready for valuables, cash and ATM or credit cards, medications, and toiletries
  • Mobile phone and charger
  • A fire blanket
  • Change of clothes for everyone.[1]

This is also the time to pack any sentimental items so that they can be easily found and taken with you if you have to leave quickly. Put the kit in an accessible location the whole family knows about.

If you are in a bushfire zone, equip your property with firefighting tools such as hoses, pumps, and water tanks. Ensure that you have an independent water source, like a dam or swimming pool, that can be used by firefighters in case of an emergency. Regularly maintain and test this equipment to ensure it is in working order.

  1. Insurance coverage

Securing the right insurance coverage is a critical aspect of bushfire preparedness, particularly for those who live in a bushfire zone. Talk to your insurance adviser for advice about specific policies that cover bushfire damage. Ensure that your policy provides adequate coverage for the replacement or repair of your property and its contents in the event of a bushfire. Consider additional coverage for expenses related to temporary accommodation and loss of income.

  1. Regularly review and update insurance policies

Periodically review your insurance policies to ensure they accurately reflect the current value of your property and possessions. Underinsurance is a serious business risk so it’s important to stay up to date with updates or adjustments that may need to be made to adequately cover changes in property value, renovations, or acquisitions.

  1. Establish open lines of communication with your insurance adviser.

Resilium insurance advisers will regularly stay in touch with their clients anyway, but it’s important to report any new changes to your business or modifications/upgrades to your property as this may affect your insurance coverage.

In Australia, bushfire preparedness is a shared responsibility between homeowners, communities, and insurers. By following these comprehensive steps, you can significantly enhance your preparedness for bushfires while ensuring you have the appropriate insurance coverage in place. Remember, proactive measures coupled with robust insurance coverage will help safeguard your property and provide peace of mind during bushfire season.

The above article was originally created and published by Resilium Insurance Broking and titled: Bushfire season – plan and be prepared.

Sources

Resilium Insurance Broking: Bushfire season – plan and be prepared.

Queensland firefighters warn public to be aware, prepare for catastrophic fire risk this week – ABC News

How to prepare for a bushfire in Australia | QBE AU

BOM declares El Nino, amid ‘catastrophic’ fire risk in NSW (thenewdaily.com.au)

[1] How to prepare for a bushfire in Australia | QBE AU

Apr 25
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Running a home business? Are you adequately covered?

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If you’re running a business from home, do not assume that your home insurance will provide you with the coverage you will need for your business. This is because running a business from home carries risks that aren’t necessarily covered under a standard Home and Contents policy.

In fact, most home and contents insurance policies exclude coverage for business assets, equipment, or stock, so it’s important to get professional insurance advice to make sure you have the right coverage for both your home and your business.

Read the full story, from Resilium Insurance Broking, which outlines some of the key things to consider when it comes to insurance and working from home.

Dec 07
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How can you protect yourself and your business from Cyber risk?

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In this digital era, more than ever before, we are seeing a rapid increase in Cybercrime that has resulted in devastating consequences. Consider the recent Optus and Medibank cyber-attacks, which saw hundreds of thousands of people’s personal information released to the dark web as part of a sophisticated Cyber ransom.

No one is safe from these anonymous criminals sitting behind their computers and using sophisticated technology that allows them to commit a range of Cyber related crimes including extortion, theft and fraud all via the web and undetectable until it’s too late.

According to the Australian Cyber Security Centre, led by the Australian Government, a cybercrime is now reported every seven minutes and costs the Australian economy up to $29 billion annually in direct costs alone! This is up 50% on the year prior, showing just how much Cybercrime is on the increase.

“Businesses can no longer afford to be complacent about their Cyber safety, which is why many are seeing many adding Cyber to their overall insurance risk profile or increasing their existing Cyber insurance cover.

The average time it takes to resolve a Cyber breach can be anywhere between 23 days and never! That’s a minimum of 23 days that a business may be potentially frozen from conducting any operations, or worse, not being able to get access back to their business systems at all!

Of those businesses that are hit with a Cyber breach, more than half of them will have to close their doors permanently within six months as a direct result.

Business owners need to consider the damaging consequences of a Cyber-attack and whether they could actually cope with the ensuing potential revenue loss, lost customers, brand damage, critical data lost and more, all the while still having to paying staff and other bills.

What are some of the most common Cyber-attacks?

  1. If a Cyber-attack is a Malware breach, it can cause damage to an entire computer network via ‘worms’ viruses or trojans… leaving the computer and the whole network inoperable as the hacker controls the system remotely.
  2. If a Cyber-attack is a Ransomware breach, this is a type of malware that encrypts a victim’s files and sees the Cyber attacker demanding a ransom to restore access – usually in payment via untraceable Cryptocurrency.
  3. Phishing is one of the oldest types of cyberattacks and it’s still one of the most destructive. It tricks email recipients into believing that the message is something important and from a real provider like a bank or a notice to update Office 365 for example.
  4. Denial of service is a type of Cyber-attack is an attempt to make an online service unavailable by overwhelming it with traffic, by compromising systems to flood sites causing the website or server to slow down or crash.

Things you can do to protect yourself and be prepared for a Cyber-attack.

  1. Consider using extra security measures like multi-factor ID authentication for portable devices like laptops, iPhones and iPads.
  2. Conduct ‘safe web browsing’ – do not click on things that look legitimate. Always check the URL and whether it is from a trusted sender.
  3. Email security is vital – Do not use your personal email for work purposes, never open attachments on unfamiliar emails, do not click on any suspicious links within emails, and consider the email itself as to whether the links look strange or there are spelling/grammatical errors.
  4. Password protection – Avoid common passwords which include seasons, city names, pet names, and family names. Consider using full-sentence passphrases with numbers or symbols (i.e., WelcomeToSharePoint2018!)
  5. Lock up important business materials – Do not leave papers, computers, or other electronic devices visible in an empty car or house.
  6. Shred sensitive paper records before disposing of them – Cybercriminals have been known to go through people’s bins to find personal data and use it for Cybercrime.
  7. Cyber insurance – Talk to an Insurance Mentor Adviser about your Cyber risk profile and how you can be protected.

How Insurance Mentor can help

Prevention is the best vehicle for defense against cybercrime. Make sure you are up to speed with the latest online fraud techniques, so you don’t become a victim.

Your Insurance Mentor adviser will be able to help assess and outline the risks and vulnerabilities your organisation might face from a cybercrime perspective. Call us on: (07) 5688 0973 to find out how we can help,

The information provided in this article is of a general nature only and has been prepared without considering your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium directly.

Mar 10
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Are you insured enough?

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Underinsurance, having an insurance policy without enough ‘sum insured’ to cover potential losses, is a huge business risk.

According to global research group Rice Warner, Australia is one of the most underinsured nations in the developed world. Indeed, it’s estimated that Australians are underinsured by a staggering $1.37 trillion!

One in ten Australian businesses has no insurance cover

A recent report from the Insurance Council of Australia showed that the prevalence of non-insurance or underinsurance in the Australian SME sector was approximately 12.8 per cent.

Ben Hastie, Managing Director of Resilium Insurance Broking, suggests underinsurance is a big problem for small businesses.

“There are some small businesses that either do not have any insurance at all, or have inadequate sum insured coverage,” he says.

“Obviously, having no insurance is a major risk, but some business owners look to save money by having cheaper insurance premiums, but the danger in this is that the lower the premium, the narrower the cover.”

Taking the cheap option could mean lower costs in insurance premiums but at the risk of having a policy to protect your interests should disaster strike.

Review your Insurance needs regularly

Even if your business doesn’t change much over time, it’s still very likely that the space in which it operates has changed.

For example, a few years ago malware attacks and data breaches weren’t something SMEs had to worry so much about. Today however, ransomware attacks and Cyber-crime is on the increase, targeting businesses of all kinds, small and large.

“It’s important to update your Insurance Adviser with any important changes to your business, whether it’s taking on new clients, hiring new employees, moving premises or buying new equipment,” says Hastie.

How we can help

As a qualified and Authorised representative of Resilium Insurance Broking, we have the knowledge and expertise to carefully examine your business’ level of risk and provide professional insurance advice.

 

Talk to us today so you can have peace of mind that your property and assets are adequately insured should the worst-case scenario take place.

References

[1] Rice Warner, Australias-relentless-underinsurance-gap, 2016.

[2] Insurance Council of Australia, 2015-non-insurance-in-the-small-to-medium-size-enterprise-sector.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact us directly for a confidential discussion.

Oct 31
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Management Liability insurance – who needs it and why

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Business Directors and Managers are increasingly under pressure to please a multitude of key stakeholders whether they be business partners, employees, shareholders or clients. Should one of these stakeholders become displeased, it can lead to lawsuits and costly compensation payouts.

It’s why Management Liability insurance, which can cover the cost of investigating, defending and settling claims by a third party, is one of the most important business insurances a company can have.

According to Adrian Kitchin, Managing Director of Resilium Insurance Broking, if a business is not adequately covered with Management Liability Insurance, its Directors and Managers could well be at risk of losing not just their business, but also their personal assets as well.

“The reason this insurance is so important is that it can provide cover for a business against claims that arise from mistakes or even deliberate actions, like fraud, from the company or its Directors or employees – both past and present,” he explains.

“It’s important to note that even if you, as a Company Director, are unaware of any negligent actions of one of your subordinates or junior employees, you can still be exposed to legal consequences,” says Mr Kitchin.

What kind of Claims against a Director or Officer or their business can be covered by Management Liability insurance?

  • Bullying
  • Breach of duty
  • Crime loss cover including investigation expenses
  • Defamation
  • Discrimination
  • Fraud
  • Harassment
  • Occupational Health and Safety
  • Tax Audit expenses cover
  • Theft by employees or contractors
  • Unfair dismissal.

 

Depending on the cover you take, the right Management Liability policy can typically protect against some or all of these risks:

  • Damages and claimant costs awarded against you
  • Legal fees
  • Investigation costs
  • Civil fines and penalties
  • Representation costs where you are legally required to attend an inquiry or investigation regarding company affairs.

 

Do you need Management Liability insurance?

Mr Kitchin says that a good way to know if you need Management Liability insurance is to consider the following questions. If they resonate with you then you would probably need Management Liability insurance.

  • Crime– How easy is it for your inventory to be stolen by employees? Do you make electronic payments to suppliers?
  • Cyber– What kind of security practices do you have in place to protect your business from cyber risk?
  • Employees– Do you have a process in place where employees can regularly voice concerns about the workplace environment and personal development?

 

“Sometimes business Directors wonder if they should get Management Liability insurance or if they should have Professional Indemnity, or indeed both,” says Mr Kitchin.

“Management Liability Insurance is focused entirely on the ‘act of running a company or business’,” he explains. “Professional Indemnity Insurance on the other hand deals with claims that could be filed by third party companies, partners or suppliers over a faulty or poor service.”

“A Professional Indemnity policy is equally important, but it will not protect your business or your personal assets if there are claims that you, as a Director at the company, were involved in illegal or unethical management practices which in turn caused losses to other individuals or businesses,” he concludes.

Talk to Insurance Mentor today about the potential risks and exposures that come with running a business and how Management Liability Insurance could be one of the best business decisions you’ll have made.

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