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Breaking down the differences: public liability vs professional indemnity insurance explained

Posted on March 04, 2024 | by | Posted in Insurance

The world of insurance can be a little overwhelming to navigate, and understanding whether you need public liability or professional indemnity insurance is one of the complexities that many people come across. There are instances where you may need both depending on your profession but in short, public liability protects you against lawsuits for damage or injury that may occur to a customer or their property, while professional indemnity insurance is to cover you personally in the event of professional negligence or errors. Let’s look a little deeper into what this means.

Public liability

Public liability is a type of insurance suited to any sized business that could potentially be sued for damages arising from a client or member of the public claiming they were injured or had property damage due to your business activities. Examples of public liability claims could include a customer slipping on a wet floor and sustaining injuries or a delivery driver damaging a customer’s letterbox as they entered the driveway. 

Professional indemnity

Professional indemnity insurance will cover you personally against a client or patient bringing charges of negligence. You may be a surgeon who performed a procedure your patient was not happy with or a financial adviser who has a client who feels you gave bad advice resulting in a significant financial loss. Essentially, professional indemnity insurance is to ensure that any costs associated with a dissatisfied customer who feels you were negligent in performing your professional services are covered.

How to tell which insurance you need

Some industry and registration requirements for certain professions and trades will dictate which insurance you need; however, the best way to discover what is required to keep you covered appropriately is to consult an experienced insurance broker such as Matrix Insurance. While there may not be a regulatory requirement for certain insurance, assessing your risk status will reveal if you need public liability insurance, professional indemnity, or both.

Public liability cases

To execute a public liability insurance claim, a member of the public will first need to establish that you failed to exercise a duty of care. In this event, their injury or damage could have come about from faulty equipment, maintenance issues, or avoidable hazards that could have reasonably been rectified or cordoned off before any injuries occurred. Examples include an overloaded shelf collapsing and crushing a customer, a puddle on the floor causing a slip hazard, or perhaps you have a lot of moving machinery in an area the public can access, allowing for accidental collision or impact injury.

Professional indemnity cases

Typically, we would think of professional indemnity as a type of insurance that is attributable to healthcare professionals and malpractice lawsuits. It actually extends to all professions, with examples being an IT consultant accused of breach of confidentiality, an accountant making an error that causes serious financial issues, or a lawyer accused of misrepresentation. If you offer services that could cause financial losses or physical injury, professional indemnity will keep you covered for any potential costs arising from claims of malpractice.

Costs associated with lawsuits

If a claim is made against you there are several types of damages that you could be liable for. Medical costs, compensation based on the severity of the injury, construction costs in the case of property damage, and loss of income could all be brought against you. Couple this with your legal fees and potentially the legal fees of the person suing, it can amount to quite a substantial sum of money. Having the appropriate insurance safeguards you in the event of a claim against you, seriously affecting you and your business financially.

Where to from here?

If you are still unsure if you need public liability insurance or professional indemnity insurance, consider this. Does the service you provide have room for error? Is there a possibility you may cause property damage? Are there any hazards within your premises that may cause injury? From something as simple as serving coffee that burns a customer, or a lawnmowing service that accidentally breaks a window from a stone flying up, or a masseuse who may have gone a little too hard on a person’s body, the potential for lawsuits or claims for compensation are constantly present.

The vast number of options available in the market when considering insurance makes it a wise choice to enlist an experienced insurance broker. Find someone with a proven track history of successfully finding the best insurance for their clients such as Matrix Insurance. With a nationwide client base, and a wealth of access to some of the best insurers in Australia, the ideal match for your insurance needs is but a phone call away.

The Risks of Underinsurance: Why You Should Be Cautious

Posted on January 10, 2024 | by | Posted in Insurance

Securing comprehensive insurance coverage in today’s dynamic business landscape is a crucial element to maintaining success, security, and peace of mind. However, many businesses are not aware that they are underinsured, and this could have devastating repercussions if they ever need to claim. In today’s blog post, we want to explore the risks of what might happen when businesses find themselves underinsured. 

First of all, we need to understand underinsurance 

Underinsurance can occur when a business doesn’t look into the details of its insurance and fails to secure adequate insurance coverage to protect its assets and liability completely. This detrimental shortfall can happen for various reasons, including misjudgement of the company’s value, a failure to reassess coverage needs over time, or a misunderstanding of the potential risks they might face. 

Why might underinsurance occur?

Incorrectly assessing the value of a business – One of the most common reasons is inaccurately assessing the overall value of a business. As a business grows, assets, revenue, and potential liabilities evolve with it. Failing to regularly reassess all these things can result in outdated, inadequate coverage. 

Cutting costs – In an attempt to reduce costs, businesses sometimes opt for minimal insurance to keep their premiums low without fully understanding the potential risks involved. Even the shortest term of cost-cutting measures can expose a business to significant risk. 

Failing to anticipate risks – Sometimes, businesses may underestimate the potential risks they face and fail to anticipate emerging ones. Without an in-depth understanding of potential threats, a business might not purchase enough coverage against them. 

The risks of underinsuring a business 

Unfortunately, businesses underinsuring themselves is a common occurrence, so it is essential to understand the risks involved when a business fails to assess everything correctly. 

Financial vulnerability – When a business is underinsured, the most immediate risk is its vulnerability. In the event of significant loss, property damage, theft, or natural disaster, it may be likely that the business will never get back on its feet. 

Facing legal consequences – underinsurance also exposes businesses to legal consequences if they are unable to fulfil financial obligations that arise from liability claims. This can result in long-lasting disputes, hefty fines, and damage to its reputation. 

Limited recovery options – Inadequate coverage may also limit business recovery options. This can impact replacing damaged assets, mitigating the financial impact of lawsuits, recovering from cyberattacks, and much more. 

Find out how to avoid underinsuring your business. 

If you are unsure if your business has been assessed incorrectly for its insurance packages, it is essential to look into it immediately. Matrix Insurance Is proud to provide trusted insurance solutions to businesses in Perth and all over Australia. If you want to mitigate risk, we are the ones you need. Our comprehensive risk assessments ensure you understand all potential risks to your business. We also regularly assess your business and review its coverage so it always aligns. Our customised insurance solutions and business expertise are what you need to keep your business safe. 

Why Professional Indemnity and Liability Insurance is Essential for Marketing Consultants

Posted on January 10, 2024 | by | Posted in Insurance

For marketing consultants, business revolves around navigating the intricacies of client expectations and the challenges within their industry. When it comes to safeguarding your practice, it should always be of the utmost importance. Professional indemnity and public liability insurance act as indispensable protection against potential risks, providing a tremendous amount of financial protection and peace of mind. This is why we want to discuss what they both mean to your business and the genuine risks of operating without them. 

Knowing what professional indemnity and liability insurance is 

Professional indemnity insurance – This is designed to protect businesses and professionals from any legal action that may arise from the professional advice or services they provide. For marketing consultants, this can cover claims for errors, negligence, or omissions arising when providing services to clients. 

Liability insurance – This encompasses public and product liability, protecting against claims that relate to property damage or bodily injury caused by the consultant’s business operations or on their premises. The public aspect focuses on incidents involving clients or third parties, while the product extends coverage to the potential harm caused by products or services. 

Four primary risks that can be avoided with indemnity and liability insurance 

Though the risks can extend to several things, there are four primary risks we believe are the most important to discuss: legal consequences, financial strain, property and personal injury claims, and damage to client relationships. 

Legal consequences – For marketing consultants, nothing is certain. The nature of the game is to provide strategic advice and creative services, so if a client doesn’t do well from a decision, there is a chance they will take legal action. Without professional indemnity insurance, one could face a significant legal battle. 

Financial strain – Without insurance, you may be responsible for legal costs and compensation, potentially threatening the stability of your business. In today’s business climate, it is uncertain what legal costs will come your way, so being protected is imperative. 

Property and personal injury claims – Marketing consultants often deal with clients on their premises. Without the correct liability insurance, there could be legal claims if a client or third party sustains an injury or property damage relating to your business. 

Damage to client relationships – Legal disputes can be detrimental to client relationships and significantly decrease levels of trust. Even if the claim is unfounded, the existence of legal action being taken against you can create massive tension. Professional indemnity insurance aids you in navigating such situations, preserving client trust, and maintaining professional standing. 

Protecting yourself has never been easier 

If you run any sort of business, you need an insurer who understands its unique risks. Matrix Insurance offers seamless access to professional indemnity and liability insurance, eradicating your concerns for the future. Our team are proud to be at the helm of Australia’s insurance industry, creating tailored solutions governed by our expertise and passion for our work. If you want an easy time and professional advice to keep your business safe, Matrix Insurance is your go-to place. 

Insurance Brokers’ Strategies for Combating Fraud and 

Posted on December 12, 2023 | by | Posted in Insurance

Insurance fraud is an unfortunate event and overall headache, but there are steps that you can take to help prevent fraud and mitigate losses. No matter what industry you’re involved with — healthcare, automobile, etc. — there is always a risk of insurance fraud. From false health claims benefits to exaggerations about vehicular damage, there are multiple ways that others can attempt to extract more from an insurance company.

Luckily, with proper training and widespread knowledge, you can find ways to combat fraud and overall ensure policyholder security. Let’s outline a few critical factors in preventing insurance fraud. 

Preventing Fraud: Best Practices and Tips

There will always seem to be a scam on the horizon, but with a few best practice policies, you can prevent fraudulent claims while still maintaining exceptional customer service. 

• Educate Your Claims Team Regularly: Many employees receive crucial fraud prevention training to start a job but make this a regular practice within the workspace. Technology and fraudsters constantly adapt, so your company needs to work just as hard to stay current. By maintaining diligence in these practices with regular training, you can help mitigate current fraudulent trends.
• Get the Whole Staff Involved: While your claims team is a key factor in preventing fraudulent claims, keep your other departments up-to-date on new trends and warning signs to look out for. Another department may notice a red flag in a claim, helping all teams in the process. 
• Stay Up to Date: The only way your team will stay current is if you do. Be proactive in your prevention: attend conferences, research current trends and speak to others about what best practices they may implement within their company. Knowledge is power, but you need to stay active to access it. Staying up to date helps you, your team and your company later down the line. 
• Analyse the Data: Tracking your data and implementing predictive analytics can help make connections in detecting and preventing fraudulent claims. This is a more common practice with disability claims, but it benefits other insurance areas as well. 
• Follow Best Practices with Claims: A key aspect for any insurance company is to set proper protocols for claims and ensure all staff are aware and follow policies completely. Allowance of copies or waivers for certificates can quickly cut corners in ways that are not beneficial to the company. Keep your team knowledgeable and follow strict protocols to lessen any potential claims. 

Detecting fraud is crucial to help insurance companies process legitimate claims. By keeping your staff trained, informing multiple departments of potential warning flags and implementing proper policy protocol, you will help your team and your company in the long run. 

Matrix for Your Insurance Needs

Correct protection against insurance fraud requires noticing and handling questionable activity quickly. At Matrix Insurance, we are well-versed in helping detect possible insurance fraud. 

With access to over 120 different insurers and quality service Australia-wide, we are well-prepared to assist you in handling all your insurance needs. Skip the stress and the headaches and allow the experts to help with your insurance needs. 

The Role of Insurance in Business Continuity and Disaster Recovery Planning

Posted on December 06, 2023 | by | Posted in Insurance

In a world with an increasingly unpredictable climate where weather events can have devastating consequences, the role of insurance in ensuring business continuity is more important than ever before. Whether droughts, floods or bushfires are threatening your business, making sure it is fully insured can take a huge weight off your mind.

Cyber attacks are also a major concern in today’s world. They can devastate businesses by destroying digital infrastructure or exposing sensitive information.

What is the difference between business continuity and disaster recovery?

Business continuity is the structure and procedures put in place to ensure that the essential functions of a business continue to function during and after a disaster, whereas disaster recovery is the rescue of data or capital that is lost or damaged.

The role of insurance in business continuity and disaster recovery

1. Financial protection – Insurance companies can give business owners peace of mind by covering the costs associated with equipment replacement, property damage and business interruption. This financial safety net is a massive comfort to business owners who can concentrate on keeping the company running.

2. Business Interruption Insurance – This form of insurance is key to the disaster recovery process. It ensures that expenses can still be paid during downtime as businesses count their losses in the initial stages of a disaster.

It can be especially valuable to small or new businesses that may find it impossible to recover otherwise from disaster-incurred costs. 

3. Cyber Insurance – Technology is an unavoidable part of our lives and an integral part of most businesses these days. Data storage, communications and projections are all reliant on a functioning and secure network, so it can be devastating when these systems are breached or compromised. 

Cyber insurance helps protect against the financial consequences of data breaches, ransomware attacks, and other cyber incidents, ensuring that businesses can recover and rebuild their digital infrastructure.

4. Peace of mind – Comprehensive insurance provides business owners with the peace of mind that their financial assets are backed up. It provides trust and confidence for stakeholders and investors too, who will find comfort in the company’s foresight. 

In summary

As the climate becomes ever more unpredictable and weather events such as floods and bushfires threaten us annually, business owners must prepare for the worst. Creating a business continuity plan with an insurance provider could be the difference between a company being destroyed by the event or thriving in its wake. 

Sadly, you are more likely to be a victim of theft through cybercrime than your physical assets being taken. If you are insuring against theft, fire and damage you should also be considering hackers as a major priority too. Thankfully, Cyber Liability Insurance exists to protect you during these events, providing Business Interruption Support while you re-secure your network.

Matrix Insurance Services in Perth is experienced in finding you the ideal insurance policy, ensuring your business continues to function, whatever the scenario.