Electrical Gems #152 | Page 23

¢ WHAT ARTICLES WOULD YOU LIKE TO SEE? LET US KNOW: [email protected] was none the wiser and clicked the link, I’d probably have to get my servers and system repaired – and I’m going to be looking at the company the email was sent from to take responsibility.” If you’re the victim of a cybercrime, as well as dealing with potential liability, you are also facing costs to get your own systems repaired and recovered. In addition, you could face costs to notify your network that they’ve potentially had their data compromised. “Credit cards and personal information can be used for a scam, so if your customers’ data has been compromised you need to let them know you’ve had a breach. That’s not going to look too good, so you’re probably going to lose income – you can cover that as well under cyber insurance.” Ultimately, insurance is one of those things in life that you genuinely don’t know how good it is until you need to use it. “Needing insurance is like needing a parachute,” says Catibog. “If it isn’t there the first time, chances are you won’t be needing it again.” THE UNDERINSURANCE EPIDEMIC Having insurance is one thing. Having enough insurance is another entirely. According to CGU, insurance brokers estimate that 70-80% of businesses are underinsured (which happens when the insured amount is less than the replacement value). To avoid underinsurance, assess the value of your possessions and equipment accurately and keep the policy up to date – ensure you add any new purchases to your policy, and ensure a rise in property prices (remember them?) for example, doesn’t leave you underinsured. UNDERSTANDING YOUR OPTIONS LISA KABLE OF THE INSURANCE COUNCIL OF AUSTRALIA TALKS US THROUGH THE INSURANCES YOU SHOULD CONSIDER. COMMERCIAL MOTOR VEHICLE COVER Commercial Motor Vehicle Insurance offers three types of cover for business vehicles: Comprehensive cover; legal liability, fire and theft, and third party property damage only. damaged due to negligence during transportation. COMPUTER AND ELECTRONIC EQUIPMENT Covers accidental damage or loss to computers, electronic equipment and data. HOME BUILDING WARRANTY Usually mandatory if a contract is over a certain value or the work is required to be warranted. The minimum contract value varies from state to state. COVER FOR FAULTY WORKMANSHIP Cover in the event that a completed job causes injury or property damage. CTP A requirement of registering and operating a vehicle, and premiums will reflect the primary use of the vehicle (personal or business use). DIRECTORS AND OFFICERS This may be optional in most states, but remains a critical product for good governance for businesses that have directors and/or a board. GOODS IN CUSTODY AND TRANSIT Covers damage or theft of a customer’s property that’s taken from their premises for repair. Cover is also available for goods services or repairs, may need cover against claims of goods causing damage, injury or death. INJURY & ILLNESS PREMIUM AND INCOME PROTECTION Policies are available to cover injury, illness and income protection. MANAGEMENT LIABILITY Designed to protect private companies and their directors. It’s more comprehensive than directors and officers insurance. It protects the financial wellbeing of the company, and the personal wealth of its directors and officers. PUBLIC LIABILITY Public liability protects tradespeople against legal liability as a consequence of property damage or personal injury to a third party as a result of a tradesperson’s work. Some insurance products are designed to financially protect tradies from claims of injury or property damage from work undertaken on a construction site or a home renovation. Public liability insurance typically provides $5m to $10m in cover. PRODUCT LIABILITY Businesses that supply, deliver or sell goods, even in the form of PRINCIPAL’S INDEMNITY Some policies offer protection for principal contractors. This is useful is a tradie cause a problem and the principal becomes involved. PROFESSIONAL INDEMNITY The requirement for professional indemnity insurance varies from state to state. Contracts should be checked to determine if this insurance is a contractual requirement. Regardless, it can be a worthwhile investment. TAX AUDIT If the ATO carries out an audit, some policies cover up to $5,000 for accountant’s fees and costs incurred to provide information and documentation. TOOLS OF TRADE AND STOCK Some policies cover theft of tools and equipment, fire and water damage, and damage resulting from a vehicle collision or rollover. However, some tool insurance policies will only cover theft when the tools are secured. There are a few policies on the market that will cover tools in open air. WORKERS’ COMPENSATION Every state and territory operates its own workers’ compensation scheme, which protects employees in the event of an accident or sickness. AUG – SEPT 2019 GEMCELL.COM.AU 23