Why Should I Use a Business Insurance Broker?

With the advent of the Internet, buying your business insurance online has never been easier. But, is buying insurance online good for your business? The simple answer is, no. Whether you’re looking at liability insurance, business interruption insurance or commercial property insurance, the policy you choose is essentially a safety net that will ensure your business can operate like normal in the event something goes wrong. If you don’t fully understand the ins and outs of the insurance world and the different policies out there, enlisting the assistance of an insurance broker in Sydney is a smart move. The Benefits of Working with an Insurance Broker Insurance brokers have an in-depth knowledge of the insurance industry, and are well equipped to assist you with selecting and securing the best possible policies for your business. There are a number of benefits that come hand-in-hand with working with an insurance broker, including: They Understand Insurance Jargon What does it mean when an insurance policy includes terms like actuary, assessor, and mitigation? Your insurance broker will break down all of the technical terms for you, so you will understand exactly what you’re signing up for. They Work Independently, so Have Your Best Interests at Heart One of the biggest benefits of working with an insurance broker is that they’re not working for any specific insurance company and aren’t going to advise you to choose any specific company/policy for their own personal gain. For these reasons, they will only present/compare policies that meet your needs. They Have Strong Industry Relationships and Can Get the Best Deals Even though brokers work independently, they still have strong business relationships with a host of leading insurance providers, as well as those that work within niche markets. These relationships will allow your broker to get you the best possible deal, without you having to lift a finger. They Know What Is and Isn’t Included in Each Policy Your insurance broker will ensure any optional extras or covers not included within your policy are clearly disclosed. In doing so, you will have a full understanding of what you are and aren’t covered for. This is particularly important, as the policy you’re interested in may not include all of the cover you need, a fact that may not be made immediately clear by the policy’s jargon. They Can Provide Policy Comparisons An insurance broker will be able to easily compare the pros and cons of different policies from a number of companies. While this is something you could research yourself if you wanted to, it is a timely endeavour, so having a broker do this for you will save you a lot of time and effort. Plus, if you’re not 100 per cent sure what some of the policy inclusions and exclusions mean, your insurance broker will be able to clear up any uncertainties and explain each policy to you in further detail. If you’re looking for a business insurance broker in Sydney, you can’t look past the team at Sydney Insurance Brokers. We will work with you to determine your needs, and help you find the policy/policies that best meets your needs.

5 Tips for Preventing, and Dealing with, Employee Fraud

In Australia, employee fraud costs businesses an estimated $8.5 billion annually. It might also surprise you to know that employees carry out 80 per cent of workplace crime, while 85 per cent of respondents in a recent survey said they would commit fraud if the ‘right’ circumstances were to arise. Perhaps even more alarming than these figures is that only 5 per cent of Australian businesses have the right insurance cover to protect them against any financial losses that occur as a result of employee fraud. So, what can you do to protect your business from fraudulent employees? What is Employee Fraud? Employee fraud is any dishonest act committed by an employee that negatively impacts the business they’re employed by. It can include payment fraud, procurement fraud, or even subsistence fraud. How can You Prevent, and Deal with Employee Fraud? Step One: Do a Background Check When hiring new staff members, especially if they will have access to sensitive information or your businesses financials, make sure you do a background check. Step Two: Create a Positive Working Environment If you create a friendly, collaborative working environment, where the bosses lead by example, your staff will be less inclined to commit fraud. It all comes down to establishing respect. Studies have also shown that people respond positively to a clear organisational structure, fair employment practices, clear communication and positive recognition for a job well done. Step Three: Follow a Policy Manual and Keep Up-to-Date with Audits Regardless of the type of business you’re operating, always make sure workplace procedures are documented and every employee is trained according to the manual, and has access to it if needed. Your employee manual should also clearly state the workplace’s code of conduct and that there will be ‘zero tolerance’ for any fraudulent behaviour. It’s also advisable that you undertake regular audits, and hire an external company or person to come in and check your books. This may be an extra expense, but if they can catch any acts of fraud early on, you’ll save money in the long-term. Step Four: Get Business Insurance Once you’ve taken care hiring and training your employees, the next best thing you can do is take precautionary measures, to ensure your business is protected if your preventative measures ever fail. This is where business insurance that includes employee fraud is a must! Step Five: If Something Goes Wrong, Seek External Advice As well as having adequate insurance, if you suspect an employee is committing fraud or being dishonest, you could handle it internally, however, if you’re not equipped to do so, bring in a specialist third party. One of the most important things to consider is that you should never accuse someone of doing something dishonest if you don’t have any proof, this could lead to the employee taking legal action against you. Unfortunately, the sad reality of operating a business means you will always face a number of risks, including employee fraud. This means that no matter how careful you are, there’s always a chance that a dishonest employee will find a work around. To make sure your business is protected in the event something goes wrong, contact Sydney Insurance Brokers, to see which type of business insurance is right for you.

How to Protect Your Business Against Burglars Over the Christmas Holidays

It’s that time of year when businesses (unless you’re in the retail or hospitality industries) are starting to wind down, and thinking about shutting their doors over Christmas. However, when your workplace is unoccupied, it quickly becomes a prime target for burglars and is exposed to extra property damage risks. So, before you head out to grab a beer and celebrate the holidays with your family and friends, there are a few precautions you should take to prevent any unwanted disasters from happening before you return to work in the New Year. Plan Ahead Even as you’re starting to slow down for the year, take a moment to think about what will happen if something does go wrong over the Christmas break. For instance, what happens if there’s a burglary? You will need to make sure you have plans in place to combat any issues that arise. This might mean enlisting the services of a security company, or having staff on call should the alarm be triggered. When you designate your first responder, make sure it’s someone who can be trusted, someone who isn’t going away for the Christmas break, and someone who is willing to get up in the middle of the night to respond to any incidents. If You Haven’t Already, Invest in an Alarm System The easiest way to deter any unwanted visitors is to install a functioning alarm or CCTV system. An alarm system will actively deter intruders, while also helping to minimise any damage to your property, or theft, as burglars will be quick to flee the scene when an alarm is triggered. Therefore, CCTV will add an extra level of security and protection to your business and any valuables or confidential information stored inside. Keep Any Sensitive Information Secure Any important files should be safely locked away at all times, especially over the Christmas period if the premises will be left unattended for some time. So, your legal, financial, HR, and other sensitive documentation should be kept in a locked filing cabinet or even a safe. Likewise, any digital data should be secured with password encryptions and any necessary firewalls. You should also make sure all of your business’s data is securely backed up to an external hard drive or with secure Cloud storage. Make Sure Your Business Insurance is Up-to-Date Finally, before you close your doors for Christmas, make sure you speak with your insurance broker to make sure your business insurance is up-to-date. Regularly reviewing your insurance policies is important, so you can ensure your coverage continues to reflect your business needs, as well as any new exposures or any increased risks, such as an unattended office. If you follow each of these steps, come mid-to-late December, you’ll be able to lock the doors and enjoy your Christmas break with the peace of mind your business is safe. To find out if you have the best possible business insurance for your business, contact the team at Sydney Insurance Brokers today!

Why is Policy Maintenance So Important?

Your business is constantly evolving, so your business insurance should evolve with it. Renewing your insurance policies each year is easy, but in doing so, you could be putting your company’s financial security at risk. Each year, when your policies are due for renewal, it’s worth scheduling a meeting with your insurance broker so you can go over your business needs and any changes that have occurred within your business since you initially purchased your insurance, to make sure you still have the best possible cover for your business. The following steps will help ensure you’re getting the best bang for your buck. What Does Your Policy Cover? Have a look at, or have your business insurance broker look at, your current product disclosure statement and ask the following questions. Does your policy cover things you don’t need cover for? Does the policy exclude any items that you do need cover for? Are the financial caps on your current cover enough to cover you in the event something goes wrong? Have you made any changes within your business that would require more comprehensive/additional cover? Will you be making any changes to your business in the near future, or the next 12 months that would require you to increase/decrease your current level of cover? These questions will help ensure your insurance policies are carefully tailored to your needs moving forward. Have Your Circumstances Changed? Even the most minor things can affect your insurance policy, premiums and the likelihood of a claim being paid out. For instance, if you move premises, acquire new assets or install an alarm system, it’s important you update any relevant insurance policies to reflect these changes. Are You Happy With Your Payment Schedule and Excesses? When policy renewal time rolls around, it’s worth reflecting on how happy you are with your current payment schedule and excesses. For instance, would you rather pay a higher premium if it means your excess would be lower? Or would you prefer to pay a higher excess in exchange for a lower premium? Also, have a think about the payment options available to you. Perhaps paying your policy once a year is a financial burden on your business and you would like to change it to monthly. Or, maybe you would prefer to pay annually or even quarterly. Talk to your business insurance broker about what options are available to you. Keep Track of Your Policies and be Proactive It’s really easy to pay for your insurance and then forget about it. Most people only really think about insurance when they need to find a new policy or when it comes time to renew it. However, business insurance is something that should always be on your mind. This includes regularly evaluating any changes within your business that could affect your policy, and always working to educate yourself on the terms and conditions of your policy, so in the event you do need to make a claim, you’ll be much better equipped. If your business insurance is up for renewal, or if it’s time to reassess your current policies, contact Sydney Insurance Brokers today. We’ll help you find the best cover for your business.

A Brief History of Insurance

Since insurance first emerged, as early as Babylonian times, it has gone through a significant evolution process. From a time when there was no such thing as insurance to today, where it would be considered reckless to not have insurance, the concept of modern business and personal insurance looks a lot different today than it once was. Despite early signs of insurance, as outlined by the ‘Code of Hammurabi’, The Great Fire of London was the real instigator that led to the development of early versions of modern insurance. London, like much of the world, was in a state of turmoil after the plague ripped through the UK, killing a large portion of the population. Just as Londoners thought things couldn’t possibly get much worse, the great fire of 1666 left its mark on the city, leaving hundreds of citizens distraught and homeless. One benefit of this disaster, however, was Nicholas Barbon’s first instance of home insurance, which saw 5,000 homes insured against fire damage. From here, the concept of insurance as a form of financial risk prevention really started to take off. After Barbon and his associates opened the first insurance office in 1681, the concept of underwriting and business interruption was introduced to the world. Similar to how the unofficial stock exchange of the British Empire had been operated out of coffee houses, the practice of underwriting started to take place in informal settings. These practices were developed to deal with the growing need to ship goods between the New World and the old colonies while decreasing the level of risk faced by merchants. These humble beginnings eventually led to the establishment of Lloyd’s of London, as well as several similar shipping and insurance businesses. Nowadays, there are insurance policies in place to cover just about every risk out there, especially in the business world. From cyber crime insurance to management liability insurance and everything in between, the team at Sydney Insurance Brokers can secure your comprehensive business insurance at the best available price.

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.