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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
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