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A Guide to Managing Insurance Better for Businesses

Posted on March 18, 2020 | by | Posted in Insurance

Having insurance is essential for any business. It is not the sexiest of topics, but it’s important for entrepreneurs to know how to manage the risks in the industry they’re in. Few people love insurance. Yes, it’s needed, respected, and appreciated, but most people discuss the stress of making claims and the rising insurance premiums rather than its potential benefit. Some people find themselves under-insured, while others find their insurance broker in Perth a life saviour.

In this article, we’ll be discussing how you can manage your insurance so that when claiming time comes, things will work much more smoothly.

Updating policies

One of the most common mistakes people make is that they don’t review their policies on a regular basis. If your personal and business policies aren’t up to date, then you might encounter a few problems in the future. In terms of reassessing insurance policies, a minimum of once a year will suffice. You don’t want to renew on the same levels each year or stay at the value of your policy. For example, let’s say you bought plenty of new equipment the past year and all of them are worth $7 million which was estimated at $6 million previously.

While it sounds crazy to forget a million dollars, it happens more frequently than you think. People just renew their policies without even thinking about it. If you have insufficient coverage, you won’t be able to claim for your full loss.

Overinsurance is just as real as underinsurance. Occasionally, some people will downsize but forget notifying their insurer. We all hate paying extra for insurance because there’s no real benefit, but sometimes people forget updating the values in their policy and they still have reasonably high values that haven’t been reassessed. 

Whenever there’s a slight change in your business activity, make sure to consult your broker. Even a slight change in your operations can sometimes be enough to breach your policy and you may not even be aware of it.

Protecting your business

There’s more to insurance than just protecting your buildings and equipment. Loss of profit insurance can protect you from losing income while you’re unable to operate. Unfortunately, many businesses don’t have loss of profit insurance or, their cover has been based on their accounting gross profit when it should be their insurance gross profit.

Every business should have this type of policy because in the unfortunate event that your property burns, the insurance company will pay you millions for the physical part you’ve insured. Of course, this doesn’t happen overnight. Usually, it takes three to eight months before it is completely paid. Your lost income is paid weekly or monthly while the claim is being sorted. You can also insure your staff’s payroll and you have the option of insuring only your full-time staff or include your casual staff members as well.

Some businesses tend to protect the full-timers only so as to avoid losing quality staff to the competition. If you have payroll insurance, then you’re good to go. Otherwise, your staff might not wait until you operate again and force them to find another job.

Making claims

Making insurance claims isn’t anyone’s cup of tea. Most of us prefer to rather not make one at all. But at some point, you will have to submit a formal request to your insurance company. But before you do, make sure to compile as much information about your business as possible, especially the physical aspects like buildings, machinery, equipment, stock, and materials. The more information you have, the better.

We strongly suggest keeping backups of receipts and those sorts of things. With cloud storage available, it’s much easier to backup important documents than ever. You don’t need to provide hard copies as most insurance companies are all electric. But you may notice that some of the older companies still use traditional filing cabinets and aren’t as sophisticated with tech as other insurers. It’s still worth going through your papers and scanning them just in case you need them.

When things go haywire

It’s not all the time that insurers are helpful. Whether it’s an honest error or a less-than-ideal staff, claims can sometimes take forever to get sorted or get knocked back for reasons that are seemingly spurious. In times like this though, there is an option available and that is to hire a broker. The benefit here is that a broker has thousands of policies with a particular company to which they can leverage that and say, “you guys need to pay this”. Of course they won’t fuss with losing one client, but if they deal with the broker and they’re not cooperative, they might end up losing business as well as millions of dollars worth of premiums.

Taking the time to manage your insurance will help save you plenty of stress and headaches in the long run. Hopefully with these tips, you can optimize your insurance policies and give you peace of mind while running your business.

Are you properly insured against a bushfire?

Posted on March 02, 2020 | by | Posted in Insurance

Ask any Australian what is on their mind at the moment and the majority will talk about one thing: Bushfires.

The bushfire crisis that has ravaged the east coast for the past few months has affected all of us. We’ve seen footage of the devastation, we’ve heard the statistics of buildings, homes, businesses and lives being lot; and we all are left with the one burning question – what if it were me.

Bushfires are a real and regular threat across Australia, and unfortunately, many people find that once the flames are out and the dust has settled, they are left with nothing. Which is why it’s so important to ensure your insurance policies – both personal and business – include bushfire coverage.

The bushfires in Australia’s east has resulted in the loss of more than 2100 homes, and of course all the belongings within them. Farms are in ruins and livestock are lost. Businesses are unable to open due to towns being evacuated. Supplies are being cut off from being delivered due to roads being unsafe. All in all, it’s a disaster that unfortunately many businesses may not be able to recover from.

If a bushfire threatened your home or business, are you suitably insured?

If you live in an area that is at risk of bushfires, your Home and Contents insurance policy should have a clause that covers bushfire damage. A Business Insurance Policy will cover your business for damage or total loss of property (the premises your business is located in), however if you own and run a business, it’s important to check whether your Australian Business Insurance Policy covers everything you’d need if you were caught in a bushfire crisis. 

For complete peace of mind in the light of recent bushfires, business owners should consider an Industrial Special Risks policy, which goes over and above the standard Business Insurance Policy, and is particularly suitable for larger organisations with diverse operations.

Industrial Special Risks Insurance (ISR) provides property damage and business interruption cover for businesses. Industrial Special Risks insurance protects against a wide range of events such as fire, storm, earthquake, malicious and accidental damage. Therefore in a and will cover items including:

• Loss or damage to physical assets such as buildings, contents, plant and equipment, and stock.
• Business Interruption loss from physical damage to the building or contents. 
• Coverage in the event of failure of public utilities (power, gas or water outages).
• Coverage if access is prevented – for example if the road is blocked off preventing customers or suppliers to get access to your business.
• Costs associated with removal of debris.

Matrix Insurance is supporting NSW Rural Fire Service

Like all Australians, the team at Matrix Insurance have been affected by the news of bushfires and the destruction they have caused. As such, we are supporting the NSW Rural Fire Service and encourage others to donate also. Donations are still being received through this link: https://www.rfs.nsw.gov.au/news-and-media/general-news/how-you-can-help

If you would like to speak to an insurance specialist for your own peace of mind, give Matrix a call today.

How to Manage Risks in the Mining Sector With Specialist Insurance

Posted on February 24, 2020 | by | Posted in Insurance

Whether your company is involved in underground mining or surface mining, you’re probably aware that the mining industry is riddled with risks. From the obvious dangers associated with day-to-day operations to negative ramifications in the environment, these risks have the potential to significantly impact your business. Thus, it’s extremely important that your company is adequately protected with the right mining insurance policy.

Mining insurance helps protect you from losses or damages sustained due to such risks. If your company doesn’t have suitable mining insurance in place, you may struggle to weather the financial repercussions and hamper your bottom line significantly. In this article, we’ll be discussing everything you need to know about mining insurance and how it can help you manage the risks associated with the mining sector.

What is mining insurance?

As the name implies, mining insurance is a form of specialised business insurance that provides all the coverage options you need to insure your mining company against the risks of the industry. It works just like other business insurance policies that include liability, property, and income coverage. Mining insurance provides companies with a variety of coverage options that’s unique to the mining sector.

As such, the coverage options may prove quite complex, which is why we recommend you discuss everything with an independent insurance agent to find out your coverage needs and help you land competitively-priced policies to meet those needs.

The unique insurance needs of the mining industry

One of the major risks that companies deal with in the mining sector has to do with liability lawsuits filed against them. Because of this, mining companies have unique insurance requirements compared to other industries like farming and fishing. There are several different types of liability coverage that a mining insurance policy has to offer and these are:

• Pollution and environmental liability coverage –  It’s no secret that mining can cause environmental damage, even when precautionary measures are taken. It can be a messy operation, which is why you should strongly consider pollution and environmental liability coverage. This insurance provides coverage for hazmat cleanups related to sediment ponds, chemical storage tanks, filtration facilities, and other types of pollution. It also provides coverage for legal defense fees.
  
  
• Commercial auto liability coverage – Almost all mining companies utilize vehicles to transport workers to and from job sites. They also use vehicles to transport mined materials. This type of insurance will provide liability coverage for your company’s fleet of vehicles ranging from trucks and crew buses to tractor trailers and material carriers
  
  
• Foreign and multinational liability coverage – If your company engages in mining operations outside of your own country, this coverage is needed to protect you from liability lawsuits while conducting mining operations on foreign land.

The mining industry requires several types of equipment and machinery during operation. These machines are very expensive, which makes it crucial that these machines are properly covered by your insurance policy. Here are some examples:

• Boiler and machinery coverage – This type of insurance provides coverage for all sorts of machinery used by your company. It provides coverage for things like sprinkler testing and inspections, boiler inspections, replacements, and repairs in the event of equipment breakdown.
  
  
• Cargo insurance coverage – This type of insurance is designed to insure materials, ore, and equipment that are being transported from one location to another. This coverage applies for both a hired carrier or your own business-owned vehicles.

There are plenty of other insurance options out there for mining companies and these are just a few examples of what you might need to consider. For example, you’ll need a different type of insurance to protect your company against a mine cave-in. We suggest that you review all of your options with an insurance professional to avoid overlooking important coverages and end up with a coverage that you don’t actually need.

How Matrix Insurance Can Help

If you’re looking for a reliable insurance company to assist you with your insurance needs, look no further than Matrix Insurance. Our team of specialists have the knowledge and expertise in dealing with the complexities of the mining industry to create an insurance solution that fits your needs perfectly.

We understand that each of our clients have different insurance requirements. With this in mind, we carefully analyse your business to identify the risks your company is exposed to and propose an insurance package that will adequately protect you from them. Working in the mining industry is quite challenging, even more so when you’re searching for a reliable mining insurance.

Be prepared to weather any financial repercussions coming your way by contacting us today.