Understanding Management Liability

Management Liability Insurance cover can bring a new layer of service to your traditional kind of coverage. It’s a means of providing you access to specialists who are experts at mitigating and minimising the costs to your business. However, it is also important to note that managing risks and risk management are two very different things. The truth is, even in the best-managed organisations, things go wrong, and crises will occur. But the real challenge to any management risks lies not just in the way an organisation responds to a particular crisis, but how it mitigates the risk of it happening in the first place. There is a range of ways in which your company can be damaged, and depending on the services or products that you provide- each circumstance requires a unique response, in order to give your brand the best possible chance of recovering from a potentially disastrous event. Businesses need to get back on track and have revenue coming in as soon as possible following a loss, as well as helps businesses and individuals cope with the immediate aftermath of an incident. Here are a number of our products that can aid you in the event of damage or crisis in your organisation: Management Liability Insurance (Directors and Officers) The greatest utility of management liability insurance is to protect Managers, Directors and Officers from personal liability as a result of acting on specific duty requests and responsibilities. This type of cover can be vital in protecting or indeed defending your personal or professional reputation against claims of negligent behaviour. Insurance for Investment Managers The investment game can be a volatile one, and part of the nature of it is that sometimes your investment returns won’t meet the projected expectations, causing discontent in the ranks and even in the client in some cases. In some very extreme cases, the client may even ask you for or even legally claim recompense, claiming negligence on your behalf of mishandling their assets. Claims against you, whether justified or not, can have a great impact on your business. It is important to remember that this can be insured against, protecting you and your staff from the damage that may arise from a dubious claim. Professional Indemnity Insurance Professional indemnity insurance can protect you in the event of a negligence claim against you, and this protection can prove vital in the event of a claim. Typical liabilities covered by Professional Indemnity Insurance include -Providing erroneous advice -Breach of confidentiality -Conflict of interest -Infringement of intellectual property -Unintentional defamation or libel -Cover for expenses for public relations or media advisors in the event of a crisis Some of the most common professions that obtaining Professional Indemnity Cover include; Business Consulting, Architecture, Engineering, Real Estate, to name a few. Getting covered with professional Indemnity insurance is a great way to drastically minimise your exposures to certain industry-specific risks. Business Continuity Management Program (BCMP) A BCMP is vital in providing small to medium-sized businesses (SMB), a workable framework with which to identify prevalent industry risks. However, in an area that prides itself on a bustling and thriving small business economy like Bondi, BCMP’s provide a very useful platform for these businesses, and as well a tool to respond to various risks including data breaches, disaster recovery and even contingency planning. A Business Continuity Management Program emphasises the importance of the following factors: – Understanding continuity and preparedness needs, as well as the necessity for establishing business continuity management policy and objectives. – Implementing and operating controls and measures for managing an organization’s overall continuity risks. – Monitoring and reviewing the performance and effectiveness of the business continuity management system. – Continual improvement based on objective measurements. When a risk directly impacts an organization such as a natural disaster, a response is set in motion according to specific plans. Having the right support when a threat becomes a risk to their organization. Executed correctly, a BCM program improves business resiliency, allowing organizations to save lives, reduce costs, increase productivity, and keep operations running. Running a different operation can make you an expert in professional indemnity insurance, keeping you well in the game with cyber liability and commercial crime insurance too. Get In touch with the team at Sydney Insurance Brokers today to see how we can help!

Your Business Insurance and COVID-19

Under the current circumstances, you might have some questions about your Business Insurance with Sydney Insurance Brokers amid the COVID-19 epidemic. COVID-19 is classified as a Pathogenic Avian Influenza. It, and any other diseases declared to be a Quarantinable Disease under the Quarantine Act 1908 (Cth) are unfortunately a standard exclusion under most policies of Insurance. Areas to review? Business Interruption, loss of profit Insurances do not cover COVID-19 and if you had a Fire or suffered damage from an Insured peril an Insurance company would reduce any loss of profits claim by any downturn in business. Public liability insurance is generally rated on sales/turnover, so therefore your turnover should be reviewed and the premium accordingly. Should you have to close your business temporarily, beware of the “Unoccupancy Clause” in all policies. Please do not hesitate to contact our office, we are all fully informed and aware of the Insurance consequences of COVID-19.

The Insurance Regulations That Keep You Safe

It’s no secret that the insurance industry doesn’t exactly have a good reputation when it comes trust, however, like most industries, the insurance sector is held under a strict code of conduct that is usually upheld. In Australia, there are a number of rules and regulations in place to protect the consumer, the most notable ones being: The Insurance Contracts Act 1984 The Corporations Act 2001 All insurance agencies, ourselves included, are bound by these laws, but since they’re a little on the complicated side, we thought we’d sum up some of the most important points they cover. The Duty of Utmost Good Faith and the Duty of Disclosure At its core, the first part of this regulation means that both parties – insurers and customers alike – are required to act in a manner that is fair, honest and respectful at all times. The duty of disclosure is intertwined with the duty of utmost faith but works at a slightly more granular level. Both parties are required to fully disclose any information that’s relevant to the insurance policy in question. For instance, as the consumer, you’ll be required to disclose all relevant information about your business and your insurance history, so the insurer can decide whether they’re able to insure you. In return, the insurer must disclose all of the terms and conditions of your policy, and not leave any vital information out of the policy. Your insurer will hold up their end of the bargain by providing a comprehensive product disclosure statement. As the customer, you can hold up your end of this obligation by answering all of the insurers questions honestly. Privacy and Transparency This regulation is one that needs to be upheld by all insurance providers. They are required to: Store any personal information securely Not pass your information onto any third party unless you have previously provided your consent An insurer can only ask you to answer any questions/ provide information that is relevant to determine your suitability for the policy in question Insurers need to give you a chance to check and confirm the accuracy of any information you supply them with If your insurance application is rejected, the provider is required to provide you with reasons why Insurers are also required to provide you with information on who to contact if you’re unhappy with any of their services or decisions Who Upholds These Regulations? Both the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) are responsible for regulating the Australian insurance industry to various degrees. However, it is rare for policyholders to have a need to take any disputes to this level, as most insurance professionals adhere to the regulations. If you do have an insurance dispute, your first step should be to contact your insurance broker, and we’ll work with the insurance company to try and help you achieve your desired outcome. If you don’t currently use an insurance broker for your policy needs, it could be worth looking into getting one, as we’re able to work on your behalf to ensure your best interests are kept in mind at every stage of the insurance process. Want to know more? Contact Sydney Insurance Brokers today!

Why Financial Advisors Need Professional Indemnity

Being a financial adviser is all about giving advice. Working in this industry requires a high level of honesty and integrity and to operate professionally with complete transparency. However, the provision of financial advice can be a legal and regulatory minefield. There isn’t just negligent advice to consider; there’s improper use of client information, failure to execute a transaction risk, potential loss of documents, breach of trust and regulatory changes to name a few. Indemnity is essential. Professional Indemnity insurance is the most important insurance policy for financial advisors! Exposures vary considerably depending on the vast array of unique characteristics inherent within today’s investment service firms. Contingent on the nature and scope of the service they provide; previous track record with respect to providing returns to investors; and on the type of clientele that they service, needs to be taken into account. The ASIC regulatory Guide RG126 provides some minimum guidelines and may be complemented by specific association accreditation requirements it is important to consider your own unique circumstances in terms of levels of coverage provided by your insurance program. Insure yourself in a changing world Financial advisers need an insurance solution that is strong and flexible in order to protect them from legal liability, provide adequate defense costs, and other emerging risks such as new cyber and privacy legislation requirements or intellectual property constraints. Those with existing policies run the risk of their liability being far greater, with the advent and ubiquity of crimes such as cyber-attack, data fraud, and social engineering activities, which are likely not to be covered by outdated Professional Indemnity policies. Products like Commercial Crime Insurance, Directors and officers insurance and Cyber Insurance are a few policies that are becoming more and more of a necessity in today’s online environment. Insurance for Investment Managers Investment Management Insurance (IMI) is a specially tailored insurance policy designed to provide protection to investment managers, fund managers, private equity firms, venture capitalists, responsible entities, investment trusts and for professional funds; putting all of their potential exposures under one policy which combines Financial Institutions Professional Indemnity insurance, Directors and Officers cover and Crime Insurance as well. The investment game can be a volatile one. And part of the nature of it, is that sometimes your investment returns won’t meet expectations, causing discontent in the client and in some cases, cause your client to go looking for recompense from you, the fund manager. Claims-whether justified or not, include allegations of negligence in the management of investments, straying from published investment strategy, breach of mandate and investigation by a government agency or other regulatory body. Its not just the potential risk of clients making claims against you or your business, but others are also affected by the decisions that fund managers make. Increased public and professional scrutiny, economic conditions, higher client expectation, and tougher regulation have meant that quality insurance is now more important than ever. Protect your business’ reputation It is important to remember that Professional Indemnity Insurance doesn’t just protect you from financial loss associated with third-party claims. It is also an invaluable tool in protecting your and your firm’s reputation. With many new global insurers able to provide more capital for the investment managers insurance market. It’s a good time to re-evaluate your existing arrangements. Contact us today to make an appointment with a local Broker here at Sydney Insurance Brokers.