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Asbestos Risk Management

Posted on May 20, 2021 | by | Posted in Uncategorized

In recent years, countries like Australia and the U.S. have experienced huge asbestos-related payouts due to improper risk management. Businesses today are strongly encouraged to update their risk management strategies and include asbestos as part of the equation.

Most of the buildings in Australia that were built before the 1980s contain large traces of asbestos. Properties and establishments used fibrous cement sheets which mainly consisted of asbestos and have caused people to develop conditions like mesothelioma and asbestosis.

Each year, around 700 cases are diagnosed in Australia according to the Asbestos Diseases Research Institute. Managing asbestos risks has never been more important and there are two critical exposures that should be heavily considered:

There are two critical exposures that must be considered.

• Property damage – asbestos contamination and cleanup
• Bodily injury – health risks associated with prolonged exposure to asbestos

Claiming that an asbestos illness stemmed from a specific exposure to asbestos can be challenging. Once the cause has been determined, the compensation calculations are quite basic but are very expensive.

Asbestos removal

Insurers have to take into account the removal process of asbestos. They need to guarantee that the asbestos contractors are licensed and accredited and that the asbestos is handled safely according to specified regulations. Upon removal, the material must be transported to an EPA-controlled environment such as a landfill site or waste recycling facility.

Contractors should secure general liability coverage under a specific dedicated occupational liability policy setup. They should also take out cover for their own employees for more effective risk management. 

A commercial operator should be qualified to remove two types of asbestos:

• Bonded asbestos found in roofing and eaves
• Fibrous asbestos found around hot water pipes and cement sheets
  

Specific policies are available for residential, commercial, and industrial asbestos removal. Then also exists a procedural expectation, which deals with the method of removing and transporting asbestos. Regardless of what type of asbestos removal is planned, a business should not proceed without appropriate accreditation, qualifications, and insurance cover.

Asbestos risk management

For many businesses, asbestos risks are a long-term issue. Claims can take years to develop and while remedial cleanup is immediate, it will take years to determine whether the remedial work is successful or not. With general liability being “loss occurring”, any claims will fixate on the date the work was completed rather than the date the claim is made.

The downside with a “claims made” cover is that the insurer must run off the risk even if they have retired or closed their business. This equals maintaining a minimum cover over the years as very few asbestos issues are ever Statute barred. It is crucial that you check the wording of liability policies held by tradesman and not just their licensure to conduct asbestos removal.

Most of the standard public liability policies in Australia either have limited or no cover for asbestos. While a tradesman may be licenced to conduct asbestos removal, it doesn’t mean they’re adequately insured. Typically, a specific exclusion exists in an asbestos policy. To write this exclusion back in, it should either specify asbestos work or endorse the amendment of asbestos exclusion. You’ll find the endorsement is listed on the policy schedule.

Keep in mind that Certificates of Currency don’t always list such endorsements so make sure to ask if it’s mentioned specifically in the documents. If in doubt, a quick look at the insurer’s policy wording on the internet will help you make an informed choice.

Fines and penalties

Civil penalties can significantly impact the finances of a business.. Occupational health and safety fines can reach beyond $500,000 with environmental ballooning up to $5.5 million. Public liability and professional indemnity policies are likely to exclude coverage for fines and penalties which is something worth noting.

It’s best to ensure your entire business is covered against potential statutory fines and penalties. These can be covered separately though the extent of the Acts and will vary from policy to policy.

Any tradesperson or professional dealing with asbestos cleanup/removal can benefit greatly  talking to a group of knowledgeable insurance brokers like Matrix Insurance. Our team can assist you in managing the risks associated with asbestos and help secure the right cover for you.

Take note that you need a General Liability cover with the highest possible limits due to the claims taking 10 to 30 to manifest. A Professional Indemnity cover for those that just provide reports, inspections, audit, and advice advice are more suited to a “Claims Made” policy which means a more up to date sum insured.

Before you hire any asbestos remover or consultant, check to see if they have the right cover in place as mainstream or standard insurance contracts typically exclude anything that involves property damage or bodily injury caused by asbestos.

Why You Should Avoid Cheap Motor Trade Insurance

Posted on May 19, 2021 | by | Posted in Uncategorized

Understandably, businesses in the motor trade industry want to keep their insurance costs as low as possible. After all, you don’t want to overspend on insurance policies that you don’t need. But there are a couple of risks associated with purchasing cheap insurance cover that could put you in a vulnerable position.

This is especially true when buying motor trade insurance from an illegitimate source. When browsing the web, you may encounter a bunch of motor trade insurance offers that claim to have affordable yearly policy rates. Some even claim to offer sufficient cover for your business even if the price is too good to be true.

However, don’t fall for their deceptive tricks. These so-called insurance companies are in it to take your money and provide zero covers in return. Before purchasing motor trade insurance, it helps to research the company’s credentials and ask their previous clients for feedback so you can get a good idea of their services.

Risks associated with buying cheap motor trade insurance

It can be quite tempting to grab a discount insurance offer from a shady company but know that these offers come with their pitfalls. According to the Insurance Fraud Bureau of Australia (IFBA), fake insurances cost the economy around $2.2 billion per year. There are plenty of fake companies that sell auto and motor trade insurance to unsuspecting victims using exaggeration and non-disclosure.

Exaggeration refers to a policyholder deliberately inflating the amount of damage or loss for a higher payout. Non-disclosure, on the other hand, refers to the policyholder not giving full information regarding the client’s insurance policy. These types of insurance fraud deceive many insurers and contribute to a growing concern within the industry.

Perhaps the biggest risk to cheap motor trade insurance is that you’re likely to be underinsured. Even if the insurance company claims they’re an ethical business, your policy may feel fake because of the restrictions that barely cover anything regarding motor trading.

Lastly, your claims may be paid at a slow pace. Granted, this can happen even with well-known insurance companies, but if you’re paying for a relatively unknown company, chances are you’ll struggle with making claims. It makes sense because a company that specialises in very low premiums will be a bit stingy when it comes to returning some of that money from their customers.

What to consider when buying motor trade insurance

Whether your business engages in buying, selling, or valeting vehicles, having the right insurance is important so that you and your employees can confidently work on other people’s cars. That said, there are plenty of options available when it comes to motor trade insurance, all of which can make it difficult for you to choose. To help you make an informed decision, here are the three main questions you should ask yourself before buying motor trade insurance.

1. Where does your business operate?

Motor trade insurance policies typically cover stock, equipment, employer’s liability, public liability, and more. One cover that’s specific to this type of insurance is Road Risks which protects the insurer when driving customer cars or unsold stock. Keep in mind that a Risks only policy does not cover vehicles stored at a business address, so if you have a forecourt, showroom, or anything similar, it’s best to include premises cover in your policy for full protection.

2. Who drives the vehicles and what are they?

Most people tend to overlook the basics when it comes to motor trade insurance. The thing is that some trade insurance policies have restrictions on the type of vehicles covered. If you work on luxury cars and other unique vehicles such as performance cars, agricultural vehicles, commercial cars, or motorbikes, make sure to inform your broker in advance.

It’s also important that you choose the right people who will move the vehicles in your care. Whether it be a few approved drivers or several of your staff, having flexible cover for everyone in the business will help reduce your risk of financial loss. Talk to your insurer to ensure the people handling the vehicles are insured, especially if you employ apprentices or have staff that’s under the age of 25.

3. How much cover should you have?

Many policies will have an “indemnity level”. This figure is the maximum amount an insurer would pay in the event of a claim. If a claim’s value is higher than this, you may have to make up the shortfall yourself. Your broker will be able to assess the types of risk your business faces and check your indemnity limit is not too low.

Finding the right insurance for you

We know that dealing with insurance policies can be quite complex, especially if you’re new to motor trade insurance. To help you make an informed purchase, our team here at Matrix Insurance is ready to help. As one of the most reputable insurance brokers in Perth, we pride ourselves on providing our clients with the best insurance solutions possible.

Don’t let your business get exposed to the financial risks associated with motor trading. For more information on our services, contact us today and we’ll be more than happy to assist you.

Will your insurance protect you in a natural disaster?

Posted on April 29, 2021 | by | Posted in Uncategorized

News reports following Tropical Cyclone Seroja are causing mass shock and disbelief across the country as we take in the vision of a town that has been devastated.

Tropical Cyclone Seroja has been declared an “insurance catastrophe” with the damage bill expected to top $25 million in the coming days.

Statistics so far report up to 10 properties being destroyed, and significant damage to more than 150 homes and businesses in the town of Kalbarri and surrounding areas. Re-build of the town is expected to take up to two years, mainly due to WA’s skill shortage in the trade industry; but also because of the fact many buildings have asbestos which needs to now be removed safely.

Tropical Cyclone Seroja has caused the most damage in the region since Cyclone Elaine hit in 1999, which shows that while natural disasters may be rare, they do happen, and we need to be prepared for them.

Are you insured against a natural disaster?

In the wake of a tragic event, many people will take a look at their own circumstances. If the events of the past few days have shown us anything, it’s that there’s never been a better time to take a look at your own insurance.

According to research in the Disaster Recover Journal (Volume 13, Issue 2) after a natural disaster occurs, up to half of small businesses that suffer major losses will fail. Commercial or business insurance is a lifeline in the event of a natural disaster, as long as you are sufficiently covered.

When reviewing your business insurance, it’s important to note that not all policies are the same, and you should never assume that you are covered for everything.

While most policies will cover issues such as fire and theft, many standard commercial property policies may not cover losses from certain types of natural disasters, floods, and other major weather events. 

Some policies require you to have specific cover for natural disasters that are separate from the standard policy. 

Get the cover you need

If you’re in a disaster-prone area, it’s worth conducting a risk assessment of your business, and speaking to your broker to discuss a complete policy that suits your needs. 

Matrix Insurance has seen many instances where businesses simply were not correctly covered, and unfortunately, this can result in the business closing if a disaster occurs. 

The team at Matrix is happy to meet with clients and discuss their needs, and then tailor a package to suit. Often the ideal business insurance package will come from mixing different insurance policies into a single package, from business interruption to professional indemnity to natural disaster insurance.

It’s not worth taking the risk, and with Tropical Cyclone Seroja still very much in the news, all business owners should right now be taking a look at their own natural disaster insurance cover.

Contact Matrix Insurance today to discuss your policy requirements.

What’s the Difference Between Public Liability Insurance and General Liability Insurance?

Posted on December 23, 2020 | by Alex | Posted in Uncategorized

When it comes to choosing liability insurance, business owners usually have two options to select from; public liability insurance and general liability insurance. Liability coverage is a special form of business insurance that’s intended to cover any legal responsibilities the policyholder may have during an incident or event.

Both types of liability insurance have their own advantages. But the question is, how do you choose the right one for your needs? In this article, we’ll be discussing the differences between public liability insurance and general liability insurance so that you can make an informed decision.

What is public liability insurance? (PLI)

Public liability insurance is a type of insurance that’s designed for businesses who interact with members of the general public. Think of it as the starting point of insurance coverage for businesses that are retail or public-access oriented. Basically, PLI protects the policyholder against claims of property damage or personal injury by a third as a result of their business operations.

For example, if a customer were to slip while inside your business premises or their property were damaged while you’re conducting business, they may take legal action against you for their loss. This is where public liability insurance comes in. Depending on the policy you choose, PLI can cover incidents that occur in your workplace and other locations as well.

Keep in mind that public liability insurance only covers claims made by third parties, meaning that claims made by your staff or investors are excluded. If you work with clients and customers in public spaces, it’s vital to protect your business against potential claims. Hence, it’s imperative that you should familiarise yourself with all the exclusions that are not covered by PLI policies to ensure you’re getting adequate coverage for your business.

If you want more comprehensive insurance coverage, then you will have to look into general liability insurance which we’ll go over down below.

What is general liability insurance?

General liability insurance provides business owners with coverage for property damage or personal injury suffered during the course of business operations. GLI also covers medical expenses and attorney fees that may arise during an incident. The advantage of GLI over PLI is the wider scope of incidents and events it covers, hence the name.

Acquiring a general liability insurance policy is perfect for large-scale businesses that need additional insurance coverage, including protection of its assets in case of a catastrophic incident whereas public liability only covers liabilities stemming from public claims.

Do keep in mind that general public insurance does not cover everything. For instance, professional liability and worker’s compensation aren’t covered with GLI, meaning you’ll need to acquire additional insurance to cover liabilities from employee injuries and negligence claims.

One limiting factor of GLI is the price. GLI is more expensive than PLI due to the more comprehensive coverage. This makes the extensive policies of general liability insurance more suited for larger businesses since most SMEs may find it quite out of their pocket.

Comparing PLI vs. GLI

Like with most types of insurance policies, there are strengths and weaknesses associated with PLI and GLI. PLI policies provide a minimum amount of liability coverage such as liabilities against public claims of accidents, negligence, and injury. Because of this, the PLI policies tend to be more on the economic side.

While that’s all well and good, a PLI may end up leaving coverage gaps in the event that an employee, vendor, or investor is involved as it does only protects against claims from the public. Any expenses exceeding the coverage in the policy are shouldered by the business owner.

In comparison to GLI which is more comprehensive in nature, you can feel more confident that your business is protected from a wide range of financial threats. While GLI policies may be out of reach for SMEs, they do provide a superior level of coverage that established businesses can take advantage of.

Ensuring the assets of your company are covered against liabilities stemming from third-party claims is a crucial part of your business. Considering that these claims can be very expensive, paying them from your own pocket can significantly affect your bottom line.

Learn more from expert professionals

Public liability insurance and general liability insurance are two of the most common types of insurance that can protect you from huge financial losses. In order to determine which insurance is right for you, you need to know the risks your company is exposed to and the differences between policies.

This is why you want to hear expert advice from professionals like Matrix Insurance to help you make an informed decision. Insurance for businesses can be quite complex and it can feel overwhelming at times. By working with insurance brokers like Matrix Insurance, you can feel confident that your business has sufficient coverage without breaking the bank.

To learn more about PLI and GLI, feel free to contact us today. We look forward to hearing from you!

Reasons Why Your Business Should Have Cyber Insurance

Posted on October 28, 2020 | by alex | Posted in Uncategorized

Most SME owners think that cybercrime isn’t really much of a concern for their business. After all, why would hackers bother with small companies when they can attack larger targets like Google or eBay? Unfortunately, cybercriminals take an equal-opportunity with their approach. While they’re certainly capable of targeting large corporations, they also realise that big companies invest more on cybersecurity. This means they’d much prefer targeting multiple small businesses and extort $1,000 from them rather than hacking a big company’s mainframe in hopes of stealing $1 million.

It’s the cyberattacks like WannaCry and Petya that gained mainstream media attention for devastating government departments and multinationals. But it appears that tech-savvy crooks that prey on SMEs aren’t generating headlines which makes it even more concerning for business owners in general. This makes cyber liability insurance more important than ever as it safeguards businesses from unwanted costs due to cyber attacks.

In this article, we’ll be going over some compelling reasons why you should have cyber insurance and why it’s a good investment for your business.

What is cybercrime?

Cybercrime is any criminal act that targets a computer, mainframe, or any networked device for malicious intent.These acts are conducted by cybercriminals who range from rogue individuals to organised hack groups. They use all kinds of malware to steal data, money, and even cause damage to important files.

According to Microsoft, the global costs of damages brought by cybercrime amounts to US$500 billion (A$660 billion) annually and around 20% of those figures are from SMEs. While it can be difficult to obtain accurate data (not all businesses want to admit they’ve been hacked), it’s estimated that more than ¼ of cyberattacks are targeted towards the small businesses.

To make matters worse, the number of cyberattacks have increased exponentially in recent years. It’s estimated that around 4,000 ransomware attacks occur each day and 230,000 new malware samples are produced.

Cyber crime involves the following activities:

• Identity theft
• Cyber stalking
• Use of malware
• Use of viruses
• Computer and network hacking
• Online scams
• Phishing scams
• Fraud
• Information theft
• Extortion

Basically anyone who uses a device connected to the internet (whether it be a computer or a smartphone) can potentially be a victim of cybercrime if not careful with their browsing/internet activities.

What happens if my security is breached?

The two types of cyber attacks SME owners need to be aware of are data breaches and ransomwares. A data breach involves stealing data like addresses and bank account details from a customer or the staff. This data is then used for crimes like fraud, extortion, and identitify theft.. In the case of a ransomware attack, files get encrypted and locked up. This can disrupt business operations and cut down the flow of revenue. To regain access to the files, the business owner will have to pay a ransom (around $1,000) for the hackers to decrypt them.

Back in the day, SMEs that failed to protect any sensitive data only had to worry about suffering reputational and legal consequences in case the data breach got leaked. But in February of 2018, the Federal Government introduced the Notifiable Data Breach (NDB) scheme in Australia. The NDB scheme requires organisations and businesses to notify individuals affected by data breaches that are likely to result in serious harm.

Anyone that fails to comply with the NDB scheme can expect to pay hefty fines that can reach over $2 million AUD. Of course, complying with the scheme can result in customers filing legal claims at businesses that weren’t able to protect their data. At the very least, customers with this kind of experience will not be inclined to trust that business in the future which can greatly affect their public perception.

But I’m using a firewall. Do I still need cyber insurance?

Firewalls work great at protecting computers from cyber attacks by shielding the network from maliciou software and unnecessary traffic. To further minimise the risk of cyber attacks, we recommend following some value-based security tips like the ones listed below:

• Installing reputable anti-virus programs
• Having secure data back-ups
• Firewall technology
• Data encryption
• Introducing and enforcing sensible policies around the use of equipment (especially BYOD gear) such as smartphones and laptops

But even if you’re using a firewall (and followed the aforementione security tips), they don’t guaranteed 100% protection against cyber attacks. If major banks and multinational tech companies can fall victim to cyberattacks, anyone can.

What does cyber security cover?

The good news is that while you can’t fully eliminate the threats of cyber attacks, you can insure your business against the costs associated with it. This is where cyber insurance comes in. Cyber insurance covers you for expenses relating to the following cyber attacks:

• Interrupted business
• Hiring negotiators and paying a ransom
• Recovering or replacing records or data
• Liability and loss of third-party data
• Defence of legal claims
• Copyright infringement 
• Misuse of intellectual property online
• Crisis management and monitoring
• Prevention of further attacks

SMEs are susceptible to internet-based risks and the effects can prove devastating if you don’t have adequate insurance in place. With cyber insurance, you can feel confident knowing that your businesses is protected in case the unthinkable occurs. For more information on cyber insurance, feel free to contact us today and let us help you obtain the right policies for your needs.