You May Need to Consider.

Risks may be uninsured for a number of reasons, for example:

• Inadequate loss limits - if the sum insured is less than the amount of your exposure, any loss in excess of the sum insured will not be insured.

• No insurance - if you elect not to insure a particular risk, you must bear all losses yourself.

• A deductible or excess under a policy – you must bear the first part of the loss up to the amount of the deductible or excess.

• Excluded perils – some policies exclude perils, e.g.as flood, storm surge and subsidence. You will not be insured for an excluded peril unless you ask for the cover (which can be expensive as there is generally a limited availability of cover in these areas)

Our concern lies not so much in the fact that you may retain certain insurable risks, but that you may do so without fully recognising the fact, and without making a conscious decision to do so. Such conscious decisions should be reviewed from time to time in the light of changing circumstances. A potential problem area could arise from a series of losses, each subject to a heavy deductible.

A further concern is the possibility of the aggregation of self-insured risks. For example , one incident could give rise to a number of losses, leading to a combined loss figure well above an affordable level (e.g., a fire or explosion at a major location could involve building, plant and stock damage, business interruption, parked trucks and their loads, not to mention legal liability for injured workers and third parties’ property or injury).

With this in mind, we have indicated below a number of risks that you may not insure at present. While no list of uninsured risks can ever by exhaustive, we have aimed to highlight the more significant omissions from your current Insurance Program. As any business is susceptible to change, we recommend you review these areas regularly to ensure that you are still comfortable with the scope of cover provided by your existing policies.

Public & Products Liability:

Public Liability also known as Broadform Liability, this cover provides protection in the event that you are liable for an injury to a third party (not your employees) or damage to a third parties property. Product Liability protects you in the event that you sell, manufacture or import a product that causes injury to a third party (client or customer).

Business Interruption:

Protects your financial investment/trading profit in the event of an insured loss under Section 1 – Fire & Perils. Business Interruption Insurance reimburses you for any reduction in revenue in the event of an insurance claim such as a fire. It will help to ensure your financial commitments can be met such as loans, rent, wages & bills. It can also assist in the event you need to relocate after the loss.

Professional Indemnity:

Provides protection if you are in a profession where you provide advice and or a service of a professional nature, and you can be held liable should someone suffer a loss due to incorrect advice and you are not holding up your professional standards.

General Property:

Provides coverage for your tools, equipment & stock from loss or damage away from the premises up to the sum insured.

Machinery & Electronic Breakdown:

Provides cover in the event of a machinery breakdown for equipment used within the business, with the option of additional cover for deterioration of stock for refrigerated items, should this be required.

Transit:

Provides cover for cargo/goods in transit, while being transported within Australia or overseas. This protects your stock whilst in transit from time of pick up, to time of delivery, and also in the event of a total loss or damage while at sea. You are able to take out one off moves, or annual policies whatever your needs may be.

Corporate Travel:

Insures all nominated personnel travelling on behalf of the Insured organisation. Cover can be selected for a range of exposures such as personal accident, medical expenses, additional expenses, personal liability, baggage and personal effects, travel documents, money, loss of deposits and kidnap and ransom and can be extended to cover directors, direct family members and key staff for pure leisure travel.

Cyber:

Provides coverage for direct costs incurred resulting from a cyber-breach or violation or legal liability (third party) compensation to a third party affected by the breach that traditional insurance policies do not adequately cover.

Typical key elements of cover are:

• Breach Costs - reimbursement of your costs when a data breach occurs.

• Cyber Business Interruption - Compensation for lost of reduced revenue.

• Hacker Damage - Reimbursement for costs to repair, replace or restore systems and data as a result of a hack.

• Cyber Extortion - Payment of ransom demands and specialist consultants fees where hacker holds your systems to ransom.

• Privacy Protection - costs and expenses associated with a privacy breach.

• Cyber Liability - Claims as a result of content in email, on the intranet, extranet or website.

Management Liability:

Is designed to cover the liability exposures faced by directors and the company in the day to day running of your business. It includes:

• Directors & Officers Liability - directors have certain responsibilities (over 700 state and territory laws impose personal liability on directors for a company’s breach of the law) and legal action can be brought against them for a failure of their duties. Directors can also be personally liable and their personal assets are at risk.

• Company Entity Cover - Actions can also be taken against the company for the directors failures and this section provides cover for that aspect.

• Crime - is covering loss of money or property as a result of a fraudulent or dishonest act be an employee, a risk that is excluded by your burglary policy.

• Statutory Liability - Covers the Company, its Directors, Officers & Senior Managers & Employees for proceedings brought by regulatory bodies (Workcover) for breaches of statutory law. Covers defence costs but not penalties.

• Employment Practices - This covers claims made by past, present, future or prospective employees for an actual or alleged employment practice wrongful act, such as discrimination, unfair dismissal, sexual harassment, defamation and adverse changes in employment conditions.

Statutory Liability - Legal Costs (For Investigations & Defence)

Covers the Company, its Directors, Officers & Senior Managers & Employees for proceedings brought by regulatory bodies (Workcover) for breaches of statutory law. Covers defence costs but not penalties.

Trade Credit:

This policy provides indemnity for financial loss due to insolvency of customers, to whom goods have been sold and delivered of for whom work has been undertaken on normal credit terms.

Product Recall:

This policy covers the recall of the product manufactured by the insured.

Taxation Audit:

Provides cover for professional fees associated with audits such as:

• Australian Tax Office Income Tax Audit, Fringe Benefits Tax and Capital Gains Tax Audits

• WorkCover Authority Audit of WorkCover returns

• Payroll Tax Audits

• Optional extensions to cover audits of business owners personal affairs

Commercial Property Valuations:

Under Insurance

If you are under insured this can have a major effect on a claim on your property insurance. The underwriter has the ability to reduce your claim by the percentage of under insurance. For example if you have a building worth $1,000,000 to replace it, and it is only insured for $500,000 then you suffered from storm damage of $100,000 the claim can be reduced to $50,000 less your excess by the underwriter. To avoid under insurance issues, we recommend that you get your building and plant professionally valued.

Class of Insurance / Risks

• Accounts Receivable/Book Debts

• Advance Business Interruption

• Airport Operator’s Liability

• Association Liability

• Aviation Hull and Liability

• Bankers’ Blanket Bond

• Bloodstock or Livestock

• Burglary and/or Theft

• Business Interruption

• Cancellation and Abandonment

• Charterer’s Legal Liability

• Commercial Package

• Completed Operations

• Compulsory Third Party

• Construction Risks / Liability

• Container Liability

• Contract Penalties / Liquidated Damages

• Control of Well (Operator’s Extra Expense)

• Corporate Travel

• Crops (Growing)

• Cyber Liability

• Cyber Security (first party)

• Directors’ and Officers’ Liability / Company Reimbursement

• Disability

• Electronic Computer Crime

• Electronic Equipment / Breakdown / Business Interruption

• Employers Liability

• Employment Practices Liability

• Environmental Impairment Liability

• Extended Warranty

• Export Credit

• Extra Territorial Workers’ Compensation

• Fidelity Guarantee

• Film/Film Producers Guarantee

• Fine Arts

• Fire and Extraneous Perils

• General Property

• Glass

• Group Personal Accident

• Home and Contents

• Industrial Special Risks

• Infringement of Copyright

• IT Liability

• Key Person

• Kidnap, Ransom and/or Extortion

• Legal Expenses

• Libel and Slander / Defamation

• Life Assurance

• Livestock

• Loss of Hire / Standby Charges

• Machinery Breakdown (Material Damage / Business Interruption)

• Management Liability

• Manufacturers Output / Sellers Contingency

• Marine Hull

• Marine Cargo: Overseas Inland Inland & Overseas

• Medical Crisis / Trauma

• Money

• Mortgage and Lease Guarantee

• Mortgage Protection

• Motor Vehicle

• Non-Owned Aviation Liability

• Personal Accident / Illness - Plant & Equipment

• Pleasurecraft - Pluvius (Weather)

• Political Risk

• Product Performance Guarantee

• Product Tamper / Contamination

• Product Recall

• Professional Indemnity / Errors & Omissions

• Protection & Indemnity

• Public and Products Liability

• Salary Continuance

• Surety Bonds

• Third Party Strikes

• Takeover

• Taxation Audit

• Technology Liability

• Trailers

• Trade Credit

• Trustee Liability

• Umbrella Liability

• Valuables

• Voluntary Group Accident Schemes

• Workers’ Compensation:

  Workcover Make Up Pay/Deductible

  Victoria

  New South Wales

  Queensland

  South Australia

  Western Australia

  Tasmania

  Northern Territory

  Australian Capital Territory

  Extra Territorial