Insurance is one of those subjects that many people glaze over. So, just to test how knowledgeable you are about this important but unsexy topic, see how many of the following you can answer.

Questions

1. What type of insurance can provide cover if a natural disaster results in my business having to shut down for a period of time?
2. What type of insurance can provide cover if a client takes legal action against me? In what industries is it mandatory to have this insurance?
3. What type of insurance can provide a payout to cover costs relating to everything from a broken window to a tax audit to a light-fingered employee?
4. What type of insurance is legally required if you employ staff? What is the penalty for failing to take out this insurance?

Answers:

1. Business interruption insurance.
2. Professional liability insurance (also called professional indemnity insurance). Those working in the medical, accounting, law and financial advice industries.
3. Business insurance.
4. Workers’ compensation insurance. It varies from state to state but you’ll typically be at risk of jail time if an employee has been injured (or worse). NSW imposes a ‘double avoided penalty’ equivalent to double the amount you should have paid in workers’ compensation premiums.

One in ten businesses have no cover

If you failed to get all (or any) of the answers right, you can take solace in being a typical Aussie. Survey after survey has shown that Australians don’t have a good grasp on what insurance policies might be relevant to them. Unsurprisingly, Australia is one of the most underinsured nations in the developed world (underinsurance is when an individual or business has no or inadequate insurance to cover their legal liabilities, or the cost of loss or damage to their assets).

The Insurance Council of Australia’s 2015 report on non-insurance in the SME sector showed a non-insurance rate of 12.8 per cent. Paul Nielsen, director and chair of the Council of Small Business Australia (COSBOA), says many SMEs are in denial. “Business owners tend to think it won’t happen to them. Because of this, some SMEs view insurance as dead money,” he says.

Read the full Steadfast article here.

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Tailoring Your Coverage

Every business is unique, and so are its insurance requirements. Similarly, not all insurers offer the same policies. A proficient broker takes the time to understand your business, including its specific risks and vulnerabilities. With this knowledge, they can design and source policies that fit your risk profile, ensuring you have adequate coverage for your particular situation.

Ensuring Accurate Sums Insured

The sum insured is the maximum amount your insurer will pay out if you file a claim. Calculating this involves assessing potential losses from various events, such as natural disasters, business interruptions, and theft. Overestimating these losses can lead to unnecessarily high premiums, while underestimating can leave you underinsured and financially vulnerable. An experienced broker can help you find the right balance.

Understanding Your Options

While it’s beneficial to compare insurance options, busy business owners often have more pressing tasks. As a result, sticking with your current policies might seem easier than spending hours researching alternatives. An insurance broker can handle this legwork for you, contacting insurers, exploring different options, and recommending policies that offer the best value.

Assisting with Claims

Filing an insurance claim can be stressful and time-consuming. A broker can alleviate some of this burden by supporting you through the process, liaising with your insurer, and advocating on your behalf. This expertise can lead to smoother and quicker claim settlements, allowing you to focus on running your business.

Providing Ongoing Support

Ideally, your relationship with your broker will be long-term. They can offer ongoing assistance with policy adjustments, renewals, and risk management advice, helping you continuously safeguard your operations and assets.

Coverage When It Counts

Having the right insurance is crucial for protecting your business against unforeseen incidents. Arcuri & Associates can help you determine the appropriate type and level of coverage for your circumstances and advocate for you if you need to make a claim. Working with an insurance broker ensures you get the most out of your insurance investment, providing peace of mind and allowing you to concentrate on growing your business.

Click the Get A Quote button above for a convenient way to contact us at Arcuri & Associates.

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$97,200 is the average loss per cybercrime for medium businesses. This compared to $71,600 for large organisations and $46,000 for small businesses.

Cyber incidents are now considered the top risk facing businesses globally.

– (ACSC annual report July 2022 – June 2023)

What is cyber protection insurance?

Hack attacks, ransomware and phishing are just some of the cybercrimes against businesses that can expose them to data theft, extortion or even business failure. Cyber protection insurance is designed to help protect your business from the financial impact of computer hacking or a data breach.

Who should consider it?

Today, every business is supported by a digital backbone. This means all Australian firms are at risk of criminal cyberattacks. Cyber insurance offers businesses a level of protection to mitigate the effects of a cyber breach or attack. So, while prevention and practicing cyber safety is crucial, it also pays to take out insurance, so your business can better restore its operations if it falls victim to an attack.

What can it cover?

Cyber insurance policies vary in the benefits they provide. The Team at Arcuri & Associates can help you find the most suitable product that meets the needs of your business. Here’s the type of cover that your policy may include:

First party losses

Business interruption losses — Covers financial loss you may suffer as a result of a cyber-attack.
Cyber extortion — The costs of a cyber attack, such as hiring negotiation experts, covering extortion demands and prevention of future threats.
Electronic data replacement — The costs of recovering or replacing your records and other business data.

Third-party losses

Security and privacy liability — Damages resulting from data breaches, such as loss of third party data held on your system.
Defence costs — Fund the legal costs of defending claims.
Regulatory breach liability — Covers legal expenses and the costs of fines arising from investigation by a government regulator.
Electronic media liability — The costs of copyright infringement, defamation claims, and misuse of certain types of intellectual property online.

Extra expenses

Crisis management expenses — Provides cover for the costs of managing a crisis caused by cyber hackers.
Notification and monitoring expenses — The costs of notifying customers of a security breach, and monitoring their credit card details to prevent further attacks.

Protect Yourself Today 

Top tips to stay safe online

• Turn on automatic software updates – this helps to patch up vulnerabilities and the automatic updates mean you don’t have to think about them.
• Cyber training – teach your team how to identify common cyber scams such as phishing emails.
• Use anti-virus software – this helps protect your data from malware.
• Secure your devices – Use locks or encryption, and regularly back up your files.
• Avoid public wifi – use a secure connection, as information can be easily intercepted on public wifi.
• Regularly back up devices – recovering data can be expensive, so make sure you have your up-to-date documents backed up.
• Switch on multi-factor authentication – provide two or more proofs of identity for better security.
• Use passphrases rather than passwords – these are easier to remember and harder to crack.
• Create a Cyber Incident Response Plan – don’t wait until it’s too late to create a contingency plan for your business.

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Here are a few things you’d like to keep in check:

1. Increase in foot traffic
   During that time of year, one of the first things that comes to mind is crowds. Whether you run a retail store or a hospitality venue, you can expect an increase in foot traffic. The increase in visitors will also increase the likelihood of an incident or accident occurring. Risk in injury claims not only applies to customers and patrons. This also applies to employees seeing an increase in workload and financial stresses.
2. Increase in stock
   With the festive season, if you’re in retail or manufacturing, you’re likely carrying increased stock levels. Make sure you revise how much stock you are actually carrying and see if your current policy will cover that cost. In line with this, ensure that the extra goods you’re getting delivered have adequate cover.
3. Increased chance of burglary and shoplifting
   Over the Christmas break, whether you are operating with skeleton staff or are planning on closing completely, Christmas is prime time for burglary. We mentioned earlier how crowds increase the risk of injuries. Crowds also make it easier for shoplifters to steal merchandise without getting caught. The same goes for money, if you anticipate having extra cash on-site, make sure you’re protected.
4. Temporary staff and employee theft
   Many businesses hire temporary staff to help out during the busy season and if not properly trained in safety procedures, accidents can easily happen. Unfortunately with the increase in staff, employee theft of merchandise or money tends to go up too.

In order to ensure your business is protected over the holiday season, take the time to carry out an audit and update where necessary sums insured and liability limits. Get in touch with Arcuri & Associates today and make certain that you have sufficient coverage to protect your business during the Christmas season.

Disclaimer: This article provides information rather than financial product or other advice. The content of this article does not take into account your objectives, financial situation, or needs. Please seek professional advice from your broker before acting on any information.

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According to the Bureau of Meteorology, the recent cooling in the tropical Pacific Ocean means there is a 50% chance of a La Niña forming. The worse is, Australians are not prepared. Close to half of the Australian population don’t know what La Niña is while 51% don’t secure doors, windows, or roof coverings when a storm is coming.

Now is the best time to ensure you’ve taken all your precautions. Check your building for any cavities where water could seep in and make sure your pipes aren’t clogged. Get a roofing specialist to inspect your roofs and give their tick of approval on them being as watertight as can be. You’ll like to pay particular attention if your building was built in the 1980s or prior as it is highly likely that that the roof is made of asbestos. Roofs made of asbestos tend to be very old, brittle, and prone to damage. The claim could cost you a significant amount if you were to replace the whole roof. This would be problematic as your premium may not cover you for the entire amount of the claim; which means you’ll be out of pocket.

Have a first aid kit, clean water, and a torch handy, as well as a list of emergency numbers you can contact. When it comes to insurance, ensure that the sum insured is adequate in the event the building is damaged by a major storm. Ensure that your policy covers flood damage too. Depending on where your business is located, premiums covering flood damage can be expensive and in some areas, not available at all. For example, if your area has been subject to flooding and excessive rainfall multiple times in the past, chances are that your insurance premiums will be high. Some insurance providers may even entirely refuse to cover your business for storms and flood damage.

Take a closer look at your current policy, whether the area you’re in has a history of floods and any areas water could potentially seep in in case of heavy rainfall. If you’re unsure as to what your excess limits are, reach out to your broker.

** Disclaimer: This article provides information rather than financial product or other advice. The content of this article does not take into account your objectives, financial situation, or needs. Please seek professional advice from your broker before acting on any information.

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Who Needs It

Many types of organisations will need to have the right volunteer insurance policy in place.  Community groups, charities that provide healthcare for the elderly or disadvantaged, religious organisations, recreation clubs, and any charity or organisation that runs events, all make use of volunteers. These workers will not be covered by a standard business insurance policy, as they are distinctly different from salaried employees. Volunteer insurance policies protect the volunteer, but they also protect the organisation from public liability claims caused by the volunteers.

Did you know?

• There are an estimated one billion volunteer workers worldwide, and Australia has just under six million of them. (Volunteering Australia)
• The Australian economy receives approximately $290 billion from the work carried out by volunteers. (Pro Bono Australia)
• According to the 2020 census by the Australian Bureau of Statistics, volunteering rates were similar for males and females at 23% and 26%. Members of the population aged 40-54 were the largest group participating in voluntary work through an organisation. (Australian Bureau of Statistics)

What does it cover?

Employee insurance is very different from volunteer insurance, and you need to be aware of the protection that you are missing out on if your community group, non-profit, church, or charity makes use of volunteers. Volunteer insurance coverage means that you will get protection for:

Personal accidents: If a volunteer is injured while being involved in authorised volunteer activity, they will get protection and may receive weekly payments until they have recovered. This protects volunteers who are engaged in other work, as they may lose out on regular wages if they are injured while volunteering. It can even cover expenses caused by the accident and medical expenses.

Public liability: A well-tailored volunteer policy will also cover public liability. This type of policy will have a broader goal, and will offer protection for the organisation, any paid employees, and volunteers in cases of third-party personal injury or property damage. Not all volunteer policies will include public liability, so you need to confirm your coverage with your provider.

Voluntary Boards: If you have directors and board members that are categorised as volunteers, then you may want to include Professional Indemnity Liability. This will protect directors and officers from negligence by volunteers, defamation, slander, and sexual harassment. This is not usually included with a standard volunteer insurance policy, but may be a valuable addition if you make use of high-ranking professional volunteers.

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Professional Indemnity insurance is mandatory in some industries such as medicine, accounting, law, and financial advisers. However, even when not required by law, it is often a customer requirement that you have this cover in place. In fact, any business whether large or small, or individuals offering a service in exchange for a fee would still like to consider Professional Indemnity insurance.

Professional Indemnity Insurance covers claims made against your business by customers or other third parties alleging that in performing your professional services, your business has caused them a loss. While policies vary in the benefits they provide, professional indemnity can cover civil liability, inquiry costs, defence costs, fidelity cover, and advancement of costs and expenses.

• Civil liability: Civil liability to a third party arising out of the conduct of their professional business
• Inquiry costs: The cost of defending an inquiry by a regulatory body into the professional conduct of the insured
• Defence costs: The costs involved in defending a claim triggered by the policy
• Fidelity cover: Direct financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance.
• Advancement of costs and expenses: Additional costs and expenses incurred during a claim

A claim against you for alleged unprofessional advice, failure to exercise required skill, or breach of professional duty, can be as costly as it is time-consuming. Legal action takes its toll on everyday business running, causing stress and requiring administration and time away from your core activities.

Professional Indemnity insurance can ensure that you have access to the required financial help and expertise to defend yourself; so you can focus on getting back to what you do best. Having adequate Professional Indemnity insurance cover could relieve you from the financial burden that legal costs and compensation represent. Without Professional Indemnity insurance, you would need to pay the costs for any claims made against you out of your own pocket.

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Management liability insurance covers the costs of defending directors, managers, and employees against any claims that are the result of their actions or decisions. Having the appropriate policy allows the aforementioned stakeholders of a company to be protected against fines, penalty compensation, and defence costs. Managers and owners can also be held personally liable, which puts your personal assets at risk. Management liability insurance also extends to protecting your wealth and your family’s security, not just your company.

While policies do vary in the benefits they provide, the most common coverage includes employment practice liability, directors’ and officers’ liability, crime, corporate liability, statutory liability, and defence costs.

• Employment practice liability: Provides cover for alleged employment breaches, such as discrimination, harassment, bullying, failure to promote, breach of contract, retaliation, and wrongful termination.
• Directors’ and Officers’ liability: Protects your proprietary limited company’s past, present, and future directors, officers, and managers against claims of wrongful acts, such as misrepresentation or breach of duty (subject to business size).
• Crime: Provides protection for your business when there has been a direct financial loss such as theft of money, securities, and property. This can include employee fraud or dishonesty, third-party crime, electronic and computer crime, destruction and damage of money. However, note that not all criminal activity is covered.
• Corporate liability: Covers costs that your business would incur if you need to defend and settle claims from outside parties alleging wrongful conduct, as well as an investigation into the affairs of the company.
• Statutory liability: Covers the cost of defence, fines, and penalties under some statutes
• Defence costs: Covers your legal costs if your business ends up in court.

Even if claims made against you and your business aren’t founded, the legal costs of defending these claims can be financially crippling for businesses and individuals. In fact, 1 out of 4 private companies have reported experiencing a D&O loss in the last 3 years. On average, the reported loss from such claims amounted to $387K, with the maximum loss being $17M!

Unfortunately, when it comes to management liability your turnover or industry won’t matter much – you will have legal obligations to hold yourself accountable. If you’re a business owner or senior manager it’s your responsibility to ensure that your business meets them. Management liability insurance is designed to ensure that even the most prepared and well-run businesses are covered for any potential mishaps.

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That being said, social media does come with a set of risks. According to the latest EY Global Information Security Survey, 59% of organisations had a “material or significant incident” in the past 12 months. In fact, social media risk management is a completely different domain of expertise.

It is also crucial to recognise that with social media, messages can spread far and wide very quickly! While it is one of the reasons why social media marketing is so praised, when defamation, slander, and negative publicity are involved, it can cause serious damage to the reputation of a business. A negative brand image will have a lasting impact on your business until resolved effectively with social media risk management techniques.

Basic security practices and mitigation strategies can be adopted in order to manage those risks:

1.0 Social media policies and guidelines

Have a clear process as to who is responsible for posting on social media. Have guidelines as to what messages are appropriate to feature on social media and tone/voice to be used. This process should also provide guidance on how often social media is monitored and responded to and especially how to respond to negative comments.

2.0 Employee training

Human error accounts for 20% of cyber-attacks according to EY Global Information Security. In today’s busy world, it is all too easy for an employee to accidentally expose the company to threats online. Ensuring that your employees are involved in relevant training involving social media is key. Have training sessions around how to identify and avoid scams, attacks, and other security threats; who to notify, and how to respond if a social media security concern arises.

3.0 Professional use and personal use of social media

Always be wary of the language you use on social media. When deciding on what social channels to use for your business take into account the needs of the organisation, not the owner’s/manager’s personal views of social media. Also, remember that nothing on social media is really private. It is important to take the time to think through a message before sharing it on social media.

Regardless of all precautionary measures, insurance is always recommended as an extra layer of protection. Insurance has a role to play, but it is important to understand how cover works in relation to social media risks because the protection insurance provides has limitations.

So, what can insurance cover?

If you have been accused of defamation as a result of comments you have made on social media in your capacity working for a business, cover may be available within public and product liability insurance, professional indemnity insurance, as well as certain other policies.

Public and product liability, as well as professional indemnity insurance, may also help cover legal costs required in defending yourself in court; in the instance where you’ve been a victim of keyboard warriors on social media. That being said, policies are unlikely to cover for threats such as someone “simply” trolling your business, but rather provide cover for the loss of a major customer contract. For this to happen, the trolling or event would likely need to be defined as a crisis event.

The digital world isn’t 100% secure and even with the best antivirus software and firewalls, cyber threat is real. With the numerous social media accounts available and the use of 3rd party apps for creating content and scheduling posts, hackers have more avenues to crack through to a business; increasing risks of breaches in data records, intellectual property, and ransomware. In this case, having cyber insurance could be invaluable.

Social media offers a world of opportunities but just like any other channel, social media is not risk-free. The risks can be mitigated with effective policies and practices. Of course, as much as precautionary measures can be taken, you should consider insurance to cover your business if all fails. Social media marketing and risk management should be taken seriously and it is essential for growing businesses to ensure they are both given equal attention.

Contact us today to receive assistance on how insurance can protect you against social media risks.

Disclaimer – the information provided here is general advice only and has been prepared without taking in account your objectives, financial situation or needs.

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1. Malicious Software (Malware)

Malware is the generic term encompassing viruses, spyware, trojans and worms. The aim is to gain access to private information such as credit card details and passwords. Malware can also spy on a user’s computer and take control of its functionalities. Malware can happen to anyone and at any time. Malware attacks don’t require advanced skills and can be “performed” anywhere in the world.

2. Scam Emails (Phishing)

Chances are you’ve probably already come across scam emails before as they are typically sent to thousands of people. Scammers have become increasingly good at mimicking language, branding, and logos to appear real. Unfortunately, phishing scams aren’t only limited to emails – they are now also prevalent through SMS, Instant Messaging, and across social media platforms. Be cautious of requests for money (urgent or overdue bills), suspicious attachments, or “click here to win” links and requests to check or confirm login details.

3. Ransomware

First off – Never pay a ransom! You are not guaranteed to regain access plus you could be susceptible to another attack (and be even more out of pocket!). Similar to phishing, ransomware attacks are typically carried out via a malicious but legitimate-looking email link or attachment. When the link is clicked on or the document downloaded, ransomware will encrypt a user’s files then demand a ransom to restore access – typically payable using cryptocurrency like Bitcoin. Ransomware creators prey on businesses of varying sizes but due to small businesses often being less security conscious, are less likely to implement cyber security measures.

So what can you do to minimise your risks?

1. Regular updates

Make sure that you’re turning on automatic updates. Updates are newer versions of software you’re utilising. They tend to run faster and more efficiently but even more important, they’ll tend to have higher security levels which in turn reduces your risks of cyber attacks

2. Automatic backups

A backup is a digital copy of your business’s most important documents. If your information is lost, stolen or destroyed; at least you’ll have a back up which means you’ll be back into business quicker and easier. You could also opt for an external drive and keeping it somewhere safe offsite if you prefer.

3. Multi-factor authentication

A security measure that requires two or more proofs of identity to grant you access – think of it as a double layer of security. It’s usually a combination of a pin and a physical possession. It could be a password, security question and a code sent to your mobile phone for example. More sophisticated and high value data could be protected by fingerprint and retina screening. While a hacker could get a hold of your PIN, it is unlikely that they’ll be able to obtain and use other proofs of identity.

While taking the above precautions will reduce your risks of cyber attacks, what happens if all fail? This is where having insurance is crucial!

As covered previously, with the rise of cyber attacks, data breaches are becoming the norm, and having adequate coverage to protect your business from risk is paramount. So what can cyber insurance cover?

Cyber insurance can help cover financial losses to your business (do take note of your excess limits), your customers, and other 3rd parties following a cyber security breach.

This might cover costs associated with:

• Loss of revenue due to interrupted business
• Hiring negotiators and potentially paying ransom in extreme cases
• Recovering or replacing your records or data
• Liability and loss of third party data
• Defense of legal claims
• Investigation by a government regulator
• Copyright infringement
• Misuse of intellectual property online
• Crisis management and monitoring
• Prevention of further attacks

Insurance policies vary and with a myriad of options out there, it is best to seek professional advice. Contact Arcuri & Associates today to receive assistance on what insurance cover will suit your needs.

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