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What is the biggest risk to Australian business?

October 2, 2015

Allianz released its 4^th annual ‘Risk Barometer’ survey this year. The report lists the top 10 risks faced by businesses in 2015, both internationally and in Australia.

The list itself offers important insights into the changing face of business in Australia, and around the world. Business interruption and supply change risk was the number 1 worry for all respondents, no matter where they were located in the world.

Why Business Interruption is a concern

In its report, Allianz noted that today’s interconnected corporate environment makes businesses more vulnerable to business interruption. It makes sense. Businesses today rely almost 100% on online systems. At the very least, any functioning business requires email. On the other end of the scale, some businesses operate solely online. So when a website goes down, so do profits.

Case Study – Virgin Blue 2010

In 2010 Virgin Blue’s online booking system stopped working for about 11 days. The outage cost Virgin approximately $72,000 per hour in downtime and around 50,000 people were affected.

What happened? The reservation management company behind Virgin Blue compensated the company a cool $20 million. All because of a booking system glitch.

What else do businesses worry about?

Loss of reputation and brand value was the second most important worry for Australian businesses, while competition was held in equally high regard. It’s interesting to note the differences between Australian businesses and those in other parts of the world. For example, concerns about talent shortages and ageing workforces were high on the list for Australian businesses, but did not make the top 10 for businesses elsewhere in the world.

Source: Allianz Risk Barometer 2015

Methodology

The survey was overseen by international risk consultants, underwriters, businesses, claim experts and senior managers from the AGCS and Allianz.

• 516 respondents from 47 different countries participated.
• Each respondent was asked to name the 3 risks most relevant to their business.
• Respondents were from mid and large-scale industrial companies.

Is there a solution?

It is possible to protect against foreseeable risks, such as business interruption, those listed above and many more. A good insurance broker will explain what insurances are relevant to your industry or line of work, so you don’t waste funds on unneeded policies.

Virgin Blue was compensated for the massive losses they experienced on the back of their booking systems’ failure, and it’s important that your business is protected in a similar way. Contact our brokers to discuss what business insurances are right for you.

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10 Most Expensive Insurance Losses since 1970

September 18, 2015

When disaster strikes, it’s often the aftermath that can impact people the most. Although the initial shock of the traumatic event is over, people are still left to take stock, rebuild and support those who need it most.

Unfortunately, this can be difficult when resources are low, and when power and other infrastructure systems are down. It can also be difficult when a disaster hits a large number of people. When this happens, insurance companies are inundated with claims, and in many cases, they must prioritise the most vitally important ones first. In many cases, this is a matter of life and death.

Although it’s impossible to put a dollar figure on any natural or manmade disaster, it does shed light on what is required to build a community back up, after a tragic event occurs.

This list of the top 10 biggest insurance losses in recent history, goes some way towards shedding light on the impact of natural and man-made tragedies.

10 Biggest Insurance Losses (1970 to 2014)

Source: Insurance Information Institute

For more detailed information, please head to this website.

Need Insurance or want to review your existing policy?

If you’d like to find out more about insuring your home, vehicle or business against disaster, please contact our insurance brokers.

We will compare a range of different insurance solutions, and pinpoint one that works for your budget and your requirements. Contact us to find out more.

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10 Most Ridiculous Insurance Policies, ever

September 4, 2015

Most people understand why it’s important to have insurance for things like travel, business and home and contents – but what about moustaches? Or legs?

We couldn’t resist compiling our own top 10 list of the weirdest things insured by people around the world.

And before you ask, yes, they’re all actually true. We couldn’t make these up if we tried.

1. Chest Hair

Congratulations is in order for Welsh crooner Tom Jones, who successfully had his chest hair insured for a few million.

2. Taste Buds

In 1957 Hungarian-born food critic Egon Ronay insured his taste buds for $400,000. At the time, he was one of the most renowned food critics in the world.

3. Buck Teeth

British comedian Ken Dodds insured his teeth for a cool $7.4 million. He believed they were integral to his performance, and the insurance company thought so too.

4. Middle Finger

This one’s not what you think. Keith Richards had his middle digit covered for $1.5 million simply because he needed it to weave magic on his guitar.

5. A really Long Cigar

A little odd, but Lloyd’s of London covered a 12-foot cigar, which held the world-record for being well, really long.

6. Alien Abduction

Some forward-thinking people have had ‘alien abduction’ successfully added to their life insurance policy. True.

7. Immaculate Conception

Biblical insurance policies are said to be popular with females called Mary. Insurance insiders say there are about 100 of these in existence.

8. Legs

Plenty of celebs have had their legs insured, but not many have been covered for up to $47 million. This achievement goes to Michael Flatley AKA Lord of the Dance.

9. Falling Coconut

A doctor published a report in 1984 titled ‘Injury due to falling coconut’. Afterwards, a UK travel company insured themselves against the risk. One successful claim was made.

10. The Loch Ness Monster

A Whiskey Company in Scotland offered a $1.5 million reward for the Loch Ness Monster’s capture. Then they took out a policy to cover themselves against anyone finding it.

We help people in Australia find great-value cover for regular things, and out-of-the-box things too. Find out more about how we can help you save more on your insurance. Contact our team.

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The Corporate Travel Insurance Secret you Need to Know

August 21, 2015

Many business owners don’t realise that if they’re covered under Corporate Travel Insurance, they’re automatically covered for every business and personal trip taken within a given year*.

If you’re a business owner, this includes some members of your family too.

We’re sharing this with you because we’ve noticed many people take out travel insurance every time they depart on a business or family holiday. This takes up a lot of time, and isn’t very affordable.

What you need to know

• A comprehensive Corporate Travel insurance policy covers you for every single trip you take.
• You only need to declare your travel on an annual basis, which is far easier than doing so every time you take a trip.
• This cover includes personal and business trips.
• The cover includes your spouse or partner and dependent children.
• CEO’s and other key staff members in a business are included too. (See the list below for more detail on this one.)

Corporate travel insurance – great value cover

Corporate travel insurance is surprisingly affordable, especially given the breadth of cover available to you, your staff and your family members. Here’s what our Corporate Travel Insurance offers people:

• Age limit for Corporate Travel Insurance holders increased to 100 years.
• No exclusion for financial collapse of an entity. (Under Cancellation, Curtailment and Loss of Deposits.)
• Additional expenses cover included for travel within Australia.
• Death (by specified sickness) is covered for $50,000. This includes heart attack, cardiac arrest, pulmonary embolism, stroke, malaria and dengue fever.
• A ‘journey’ includes private interstate and overseas travel for Company Directors, CEO’s, CFO’s and Controllers, General Managers, Senior Managers and Company Secretaries of the insured, including any accompanying spouse, partner or dependent children.
• Cover for loss of reward points, under Cancellation, Curtailment and Loss of Deposits.
• Hire car excess includes the cost of returning a hire car, and vehicle expenses on a journey.
• No Terrorism Exclusion, but includes a limited War Exclusion.

To find out more about corporate travel insurance options, talk to our broking professionals.

* Of course, this will depend on the terms and conditions of the policy you take out. Contact Trident about securing a policy with the features described in this blog article.

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Cyber crime – the biggest threat to Australian Business?

August 7, 2015

Cyber crime attacks are costing Aussie businesses $1 billion a year, according to an unclassified report by the The Australian Cyber Security Centre (ACSC).

The report states that cyber crime in Australia has increased by 20% over the past year, making our nation one of the worst victims of online threats. As a result, the Australian Government seeks to raise awareness around the issue, especially for business owners.

According to the report, the businesses most likely to be targeted by cyber crime are from the following sectors:

• Banking
• Energy providers
• Communications providers

Right now, Cyber Insurance is one of the fastest growing kinds of insurance in Australia.

What does this mean for my business?

Nearly every business in Australia now relies on the Internet for day-to-day functioning. And in this modern age, more and more businesses are choosing to store critical information on online storage systems called the ‘Cloud’.

It is possible for hackers to access your business’ digital information. In some cases, they may attempt to ransom this information back to you at a high price. Or they may even release the information and damage your company’s reputation.

Having critical data compromised is a serious issue for any business. Despite this, business owners in Australia tend to overlook the risks associated with cyber crime.

Protecting against the risks of Cyber Crime

Australian business owners are generally diligent about covering physical assets, such as equipment and buildings. But many business owners are yet to catch up with the risks and threats associated with the digital revolution.

The Insurance Council of Australia recently warned Australian business owners that they could not afford to ignore cybercrime any longer.

How insurance helps

Luckily, protecting your business and staff from the impact of cyber crime is as simple as taking out the right Cyber Insurance Policy, and implementing effective risk management procedures.

We can recommend a Cyber Insurance Policy that suits your business’s needs and budget. The cost of this initial meeting is covered by us. During the meeting, our insurance specialist will discuss your requirements. Then we will use this information to pinpoint a Cyber Insurance Policy that protects your business and saves you more.

Contact Trident Insurance to schedule a consultation.

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What type of insurance cover do I need for my business?

July 17, 2015

Starting a new business is an exciting time. Depending on the size and scope of your operation, it can also be overwhelming. We’ve taken a moment to simplify one part of the equation – insurance.

Many business owners do not realise that some kinds of insurances are required under Australian law in specific circumstances.

These include:

1. Workers compensation insurance – if you employ people, they must be covered in case of sickness or an accident on the job.
2. Third party personal injury insurance –  in certain states, everyone who owns a motor vehicle must have this kind of insurance. (It is usually included in your rego fee)
3. Public liability insurance – depending on the kind of company you operate.

Get covered right

If you want complete peace of mind, then we recommend taking out the following insurance policies for your business. A good insurance broker should, at the very least, recommend your business be covered by the insurances listed below.

1. Business Insurance Package – this includes cover for Property, Business Interruption, Burglary, Money, Public Liability, Machinery or Electronic breakdown.
2. Workers Compensation – requirements for worker’s comp differs between states, so speak with your broker about what applies to you.
3. Management Liability – protects Directors and other officers against the risks of managing a business. This is vital, as in some cases; Directors may be held personally liable. (Yes, that means your personal assets may be compromised.)
4. Motor Vehicle Insurance – protects business vehicles against theft, accidents and other damage.

Why bother with insurance?

The Australian Small Business Commissioner recommends business owners protect themselves and their business from potential risk by covering their assets, revenue and liabilities.

If you’re like many business owners in Australia, the buck stops with you. If you’re sick, the business may reduce output, or stop operating completely, which not only harms your immediate income flow, but also long term profits within the business.

An accidental slip on a factory floor or an unlucky case of food poisoning at a restaurant could result in litigation and damages that could cause your business to go bankrupt. Unfortunately, these examples are not uncommon.

Avoiding these kinds of major setbacks is as simple as taking out the right kind of insurance cover for your business. We’ve divided up the insurances we recommend you hold, if you’re going into business in Australia.

Of course, your cover should ideally be tailored to the size and scope of your operation. A good insurance broker can help you do this.

For more information about getting the right insurance for your business, contact Trident Insurance Group.

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Myth Buster #1 – How does a broker help me?

June 19, 2015

Although more and more Australians are choosing to use a broker for insurances, home loans and other kinds of finance, there’s still a percentage of the population who don’t see the need.

That’s why we’ve decided to debunk some common myths about what an insurance broker really does, and how they can actually help you save more. These myths are the kinds of things we hear on the weekend, at dinner parties and BBQ’s, from people who have either not dealt with a broker before, or perhaps have, unfortunately, had a bad experience with one in the past.

Let the debunking begin!

Insurance brokers will rip you off

Broking is a highly regulated sector. In fact, some would argue brokers are bound by some of the most stringent regulations in the financial industry. A good broker works with you to discover an insurance solution that saves you more in the long term. They do this by comparing hundreds, and sometimes, even thousands, of different types of insurances. Then they hone in on the options that best align with your goals.

As a result, you get a more tailored and more competitive insurance solution.

Going straight to the source is better

In most industries going straight to the supplier makes sense. Not insurance. This is simply because an insurance company or provider has a vested interest in selling their own particular product.
Plus, they’re limited by the number of options they can offer. A broker is independent of any insurance company, so they can review a greater pool of insurance products.  A good insurance broker is about finding the best possible deal for you. They want you to come back for your next insurance, and the one after that, and the one after that.

It’s in the insurance broker’s best interest to get competitive results for you.

Insurance brokers are dishonest

We are lucky that so much of our business comes from word of mouth referrals. People understand the kind of service we provide is backed by integrity, experience and an in-depth understanding of the many insurance options available. Yes, we’re sure there are dishonest insurance brokers in the world, but they’re not employed by us. We believe in building our business through solid, long-term relationships built on a foundation of trust. It’s how we’ve been doing business for more than 20 years.

There are no benefits to using an insurance broker

We’re going to bust this particular myth with a good old-fashioned list:

• An insurance broker represents you, not an insurance company. So you get independent, objective advice based on your unique needs.
• We have access to specialists from many different sectors like marine, home and business insurance.
• A broker saves you time, by shopping around for a competitive insurance policy that aligns with your needs.
• They also save you money, by comparing many different insurance policies and honing in on one that saves you more (and works for you too).
• If a claim does need to be made, we can handle the entire process for you. If your insurer does dispute your claim, we can do our very best to resolve it as quickly as possible.
• You also get a holistic approach to your insurances, as we can see what insurances you hold, and where you could improve or save more.
• Age isn’t something we like to mention. But we have been around for a long time, and as a result, we have a thorough understanding of how the insurance process works.
• If you can’t afford to pay all of your insurances at once, we can draw on our good relationships with insurers and do our best to organise a payment plan on your behalf.
• While we can advise you on what kind of cover is ideal for you, we cannot make any decisions for you. You have the final say with regard to what policies you take out.
• An insurance broker can also help you secure insurance that is typically hard to place. Of course, we can’t guarantee that we will find you cover, but we will draw on all of our resources for you.
• While we can give you advice on the fine print of a policy, we cannot force you to read through it.
• We can also assist you with understanding the requirements of your insurance policy. But we can’t stop the insurer from enforcing requirements, if they choose to.

Get more information from ASIC’s MoneySmart

ASIC (the Australian Security and Investment Commission), has excellent tips for finding a broker in Australia. ASIC offers financial guidance on behalf of the Australian Government. You can find their online resource here.

Find out more about how an insurance broker can help you save on your cover. Contact Trident Insurance Group for more information.

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How to Save on Insurance with Low Interest Rates

June 5, 2015

You’re probably aware that interest rates in Australia are at record lows right now. As a result, there’s been a lot of buzz about saving big on home loans by refinancing with a more competitive lender.

Many people don’t realise that low interest rates offer an excellent opportunity for savings across the board, not just in the property sector. Insurance is one big example.

How to save more on your insurance

We admit that we are insurance brokers who are about to recommend that you see an insurance broker. By all accounts, the case for objectivity is not good. But please just hear us out. Your back pocket will thank you later.

How a broker helps

A good insurance broker compares many different kinds of cover, and then recommends one or more options in line with your personal or business goals. You save, because the insurance broker pinpoints the best options for a clients needs. They should also make sure the terms of your insurance policy align with your unique circumstances. The insurance cover you end up with should work harder for you, and be competitively priced.

Why do low interest rates matter?

Insurance companies can afford to lower the price of their products when interest rates are low. This makes it an ideal time to get your existing insurances reviewed by a broker.

If you do visit an insurance broker, you probably won’t be charged for the initial consultation, although you may have to pay a fee when the cover is put into place.

This fee is usually not large, and the amount you are likely to save on your insurance in the long-term will more than cover it.

How it works

1. Phone an insurance broker and ask them if they will charge to review your insurances. If the answer is no and you feel they are reputable, book an appointment.
2. Go to an insurance broker and bring all of your existing insurance paperwork with you.
3. Ask them to review your insurances with the goal of finding more affordable providers. If your goals have changed, be sure to explain this to your broker, so they can take this into account when researching prospective policies.
4. A good insurance broker will come back to you with a few different options. You will then be able to choose one that suits your best.

Insurance isn’t what it used to be

In the 1980’s when the broking industry got started in Australia, some brokers certainly received a bad wrap. And for good reason, the industry was not regulated and some unprofessional conduct occurred, without considering the needs of their clients.

The industry today is very different. For one thing, it is heavily regulated and consumers are protected by special rules and legislation. The majority of brokers are about finding you the best possible deal, and most get a kick out of helping their clients save.

If you’re unsure of whether a broker is reputable, we always recommend listening to what other people have to say about the company. Go online and head to Google+ for honest consumer feedback, or visit a forum and get an opinion from other people in the community.

If you’d like to know more about saving on your existing insurance policies, please contact Trident Insurance Group.

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Tips for Claiming Insurance after Flood

May 22, 2015

The storms that devastated Sydney and Queensland recently will have an enormous impact on the communities involved. In NSW, 11 people were rescued from the floods, more than 1,000 calls for assistance were placed and 4 lives were lost. In Queensland 3 cars were washed away in the flood waters, which tragically claimed the lives of 6 people.

When natural disasters like this occur, there’s often a rush to put a figure on the damage. In this case, some insurers estimate the damage will exceed $1.2 billion, while others believe it to be well over the $2 billion mark.

In real terms, residents with damaged homes tend to want one of two solutions – rebuild their damaged home or be bought out. Of course, the challenges are far greater than simply rebuilding or selling up.

To make life just a little easier, we’ve put together our top tips for navigating an insurance claim after a flood or natural disaster.

What do I do if my home has been flooded?

• Contact your insurer and lodge your claim straight away.
• The insurer will send out an assessor to report on the extent of the damage to your property. Unfortunately, your insurer may be flat out with similar calls from other people affected by the floods. As such, there may be a delay getting to your claim.
• If your home in uninhabitable, tell the insurer right away. Ask if they can come to some kind of arrangement while your insurance claim is being handled.
• Temporary accommodation is included in most building policies, but the benefit only applies if and when a claim is passed.
• Your insurer may request that you cover the cost of temporary accommodation. A ‘reasonable amount’ of your temporary accommodation costs will then be reimbursed to you if your claim is accepted.
• If mortgage repayments or other expenses make it difficult for you to pay for temporary accommodation, you may like to contact your lender and explain the severe situation you are in. Lenders will often stop repayments for a period of 3 months to give you some breathing room.
• If you’re still having trouble finding accommodation, we recommend calling a local relief centre. Temporary accommodation can be difficult to find when large areas are hit, so we encourage you to exhaust every possible option.

What if I am not covered for flood damage?

If your insurance company did not clearly tell you that you weren’t covered for flood damage, you may have some kind of legal recourse. Of course, this will depend on the circumstances of your situation.

If you can, collate brief details about the discussions you have had with your insurance company at the time you opened the policy.

Bring this information to the Financial Ombudsman Service of Australia and ask for advice.

How can the Financial Ombudsman Help?

They independently review and resolve issues between consumers and financial service providers. This service is free of charge to the public, because its members fund it. The Financial Ombudsman is an alternative to court proceedings. For more information on the Financial Ombudsman, head here.

What if my claim is taking a long time?

Resources tend to be stretched when a flood or natural disaster affects a large number of people. As a result, insurance companies will prioritise the claims they deem to be most urgent.

If you feel your insurer is not giving your claim the attention it deserves, then contact them and request they resolve the issue. If this doesn’t happen consider contacting the Financial Ombudsman Service for advice or support.

For more information about making an insurance claim after a natural disaster contact Trident Insurance Group.

Legal Advice Disclaimer:

This information is general in nature. Insurance brokers do not provide legal advice. Clients who require legal advice should seek the services of a qualified legal professional.

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