When you’re going out alone for the first time, there’s lots to organise and even more to pay for. While it is not always at the top of an entrepreneur’s To-Do list, ensuring you have the right startup business insurance cover is critical.
It can help protect your new business and its assets if something goes wrong. Without it, you may struggle to recover and remain viable after an accident or incident.
So, what insurance do new enterprises like yours need to start a business? Steadfast Technical Broking Manager Annette O’Brien shares some advice.
Start-up businesses are often advised to take out public and product liability insurance.
The first covers you for third-party injuries or property damage caused by your negligence. The second can help protect your business if a person or their property is harmed or damaged by a product you’ve manufactured or supplied.
Property insurance is designed to safeguard your assets – think plant and equipment, furniture, ICT devices and the like – against property damage, weather events such as storms, machinery breakdown and theft.
If you intend to hire employees or contractors, you will need to take out workers’ compensation insurance. This insurance will help protect against loss from work-related injuries and illnesses.
And should your employees need to use their own or company vehicles for work related purposes, you’ll likely need a comprehensive motor insurance policy.
While some new business owners baulk at the cost of business insurance, O’Brien says having coverage in place is part and parcel of operating professionally.
“Many insurers offer a business package that incorporates some or all of these common policies – your broker can help you source one that’s competitively priced and compatible with your business needs,” she says.
Depending on the nature of your enterprise, it may also be wise to take out specialised cover. If you provide professional services or advice, you’ll likely need professional indemnity insurance to help protect against claims related to errors, omissions or negligence.
In today’s world, cyber insurance is fast becoming a must-have, particularly for businesses that handle and store customers’ personal data.
Cyber-attacks and data breaches are now a daily occurrence – the Australian Cyber Security Centre received 94,000 cyber-crime reports in FY2023 – and they can be disruptive and damaging, particularly for organisations that lack the resources to remediate them.
Given the average cost per crime report is now $46,000 for small businesses, most start-ups would fall into that category, O’Brien points out.
“Cyber cover can help you mitigate the costs associated with data breaches and privacy violations,” O’Brien says. “Without it, your new business may struggle to recover from a significant incident.”
Insurance can help safeguard start-up businesses like yours against unexpected damage, disruption and disaster.
If you need help to determine the type and level of cover that’s right for your new enterprise, contact your AIB broker today.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
With the evolution and adoption of new technologies, lithium-ion batteries have become ubiquitous in our everyday life both at home and in businesses up and down the country. They power everything from our smartphones and laptops to electric vehicles and energy storage systems. While these batteries have become integral in powering our modern life, they come with their own set of risks, especially for businesses that rely on them. From an insurance perspective they’re seen as an ‘emerging risk’ and we’re hearing more and more news stories about lithium-ion battery risks. In this blog post, we’ll explore what lithium-ion batteries are, how they might be used in a business environment, the regulations surrounding them in Australia, and how businesses can protect themselves from potential risks.
Lithium-ion batteries are rechargeable energy storage devices known for their high energy density, efficiency and long life span. They’re now the most common battery used in rechargeable devices but come with a range of known risks. This is due to the chemicals used in their production and their internal processes. They work by moving lithium ions between the anode and cathode during charging and discharging cycles and they’re highly flammable.
In the business environment, lithium-ion batteries are prevalent in a variety of applications and devices including, but not limited to:
Among the biggest risks posed by lithium-ion batteries is overheating. This can lead to them exploding or causing fires, potentially resulting in property damage or personal injury from smoke inhalation or chemical burns. They can also be particularly difficult to extinguish if they do catch on fire as they can re-ignite and if it is a large battery, possibly burn for days.
Improper handling or damage such as puncturing or exposing the battery to extreme temperatures, can also increase the risk of failure.
According to a report by The Australian Competition and Consumer Commission, product recalls related to lithium batteries affected an estimated 89,000 products between 1 January 2017 and 31 December 2022 and at least one Australian is known to have died as a result of a fire caused by a lithium-ion battery.
Ensuring proper usage, storage and disposal of these batteries is crucial to mitigate these risks in everyday use. It’s also important to make sure you buy your devices, batteries and accessories from a reputable supplier to ensure the highest safety standards have been met when producing the device.
Proper storage of lithium-ion batteries is crucial to maintaining their performance and longevity. First, store lithium-ion batteries in a cool, dry place to avoid exposure to extreme temperatures, which can degrade their capacity. Ensure the batteries are charged to around 50% before storage, as this state of charge minimises stress and prolongs battery life. Avoid storing them in areas with high humidity to prevent potential moisture damage. Lastly, keep the batteries away from flammable materials and direct sunlight to reduce the risk of fire hazards.
One of the complications in Australia is that the different states and territories take varying approaches relating to electrical safety issues.
“The ACCC considers the most significant challenges arising from the current regulatory framework are the lack of uniform state and territory compulsory recall powers and lack of regulatory coverage for extra-low voltage products (which includes a significant proportion of Li-ion battery products).”
As such there is a lack of a consistent, comprehensive regulatory framework to protect Australian consumers and businesses.
If your business uses equipment containing lithium-ion batteries, it’s essential for you to understand what you can do to mitigate the risks. As we’ve highlighted above, proper storage of products and devices containing these batteries is paramount. In addition, we recommend the following:
While most insurers haven’t yet excluded lithium battery fires from their business insurance policies, it’s worth talking to your AIB broker to ensure that you have the right insurance cover in place that’s best suited to your needs and circumstances and offers some protection from lithium-ion battery risks.
Conclusion
While lithium-ion batteries are indispensable for modern business operations, they come with inherent risks that must be managed proactively. By understanding the nature of these batteries, adhering to regulations and implementing safety measures, businesses can protect their assets, employees and the environment. At AIB Insurance, we are committed to helping you navigate these challenges and safeguard your business against potential risks. For more information on how we can support your business, contact us today.
If you have a business, chances are you have insurance cover. Depending on the nature of your enterprise, you may hold property, workers’ compensation, public liability, professional indemnity, business interruption and cyber policies. Then there’s specialty cover for unique items, services and risks. Take Taylor Swift’s legs, for example. The superstar singer hit the headlines in 2015 when it emerged that her prized pins had been insured for an extraordinary $US40 million. Deciding whether to offer cover to a potential client and if so, how much it should cost isn’t always straightforward. That’s why insurance companies employ underwriters. But what is underwriting in insurance?
“It’s their job to take the information that’s been presented from a customer or broker and assess it to determine whether it falls within their target market and meets their insurable guidelines,” explains Chris Quick, Head of Market Management, Steadfast Underwriting Agencies.
We’ll look at what an underwriter does and why it’s important.
As part of the underwriting process, an underwriter will rate the risk associated with providing the cover that’s being sought, generally against a set of pre-determined criteria.
For example, when assessing an application for property cover on an older building, whether the premises have been rewired is likely to be a consideration, according to Quick.
“Having a customer or their broker explain the details of the risk can enable an underwriter to understand the complexities”
Different construction materials can have different risk ratings applied to them, as can regions and postcodes.
Correctly rating a risk enables an insurer to calculate a competitive premium that is compliant with its target loss ratio – the projected difference between the premiums it receives and the claims it pays out each year.
While a regular underwriter can usually assess most insurance applications that cross their desk, larger and more complex risks may need to be referred up the line. In these cases, it will often go to a senior or specialist underwriter with the authority to approve or decline them.
An insurance underwriter will also conduct a risk review towards the end of each insurance period, considering any changes in conditions and claims that may have been lodged. They’ll then re-rate a client’s risk accordingly.
Data plays a vital role in the decision-making process. Luckily, these days, underwriters have a wealth of it at their fingertips.
“There are business quoting tools and rating algorithms that save a lot of time and manual work, as well as specialised databases, such as multi-layered flood mapping. These allow underwriters to drill down and obtain detailed information at an individual property level,” Quick says.
“Artificial intelligence is also being deployed to automate administrative aspects of the underwriting process and provide brokers and customers with answers much more quickly than was possible in the past.”
But while that’s a trend that’s set to continue, human intervention will still be required in cases that don’t fit neatly into a template.
“Having a customer or their broker explain the details of the risk can enable an underwriter to understand the complexities and make an informed decision in a way that a computer program, however sophisticated, cannot do,” Quick says. “Even in today’s times, it’s a massively important role.”
Having the right insurance in place can help protect your small business from a range of accidents and incidents. A broker can help you make smarter decisions about the types of cover best suited to your needs and liaise with insurance underwriters on your behalf if your circumstances are complex or unique.
For a discussion about your requirements, contact your AIB Insurance broker today.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
Winter in Australia can bring its own set of challenges when it comes to unpredictable weather. While the cooler months can mean severe storms are less frequent and less severe, they do still occur. There are some simple seasonal tasks that can help protect your home and business and avoid potential insurance claims. Here are some practical tips from the AIB Claims team to prepare for winter and safeguard your property during the colder months.
Your roof is your first line of defence against winter weather. Regularly check for damaged or missing tiles, shingles or metal sheets. Ensure gutters and downpipes are clear of debris to prevent water buildup and leaks. It’s also wise to inspect attic insulation to avoid heat loss and condensation issues.
Properly maintained heating systems are crucial for keeping your home or business warm and safe. Schedule regular maintenance for your heaters and chimneys to ensure they are working efficiently and safely. This also helps in preventing potential fire hazards caused by faulty heating equipment.
Strong winds can cause significant damage to fences, windows and doors. Now is a great time to inspect them and ensure they are in good condition and properly sealed. Install storm shutters or use protective films to reduce the risk of glass breakage. Regularly check for any drafts and fix them to keep the cold air out and the warm air in.
Overgrown trees and loose branches can pose a significant threat during winter storms. Trim trees and remove any dead or weak branches that could fall and cause damage. Clear your yard of loose items that could become projectiles in strong winds, reducing the risk of damage to your property and surrounding areas.
Review your home and business insurance policies to ensure you have adequate coverage for winter-related incidents. Understand what is covered under your policy and consider adding additional coverage if necessary. Knowing your coverage limits can provide peace of mind and help you prepare for potential claims.
Create an emergency preparedness plan for your home or business. This should include emergency contact numbers, evacuation routes and a checklist of essential items. Ensure all family members or employees are familiar with the plan and conduct regular drills to stay prepared.
By taking these preventive measures, you can protect your home and business from potential winter damage and reduce the likelihood of insurance claims. At AIB, we’re here to help you stay safe and secure throughout the winter months. If you have any questions about your coverage or need assistance, don’t hesitate to contact us.
For more information and personalised advice, contact the AIB team for a quote or call us at 07 5409 4600
As the insurance market continues to harden, the significance of delivering efficient quotation submissions to underwriters and insurers has never been more pronounced. Streamlining this process is paramount to enable underwriters and insurers to thoroughly and accurately review the risks involved, ultimately securing appropriate cover for your clients.
In today’s challenging market environment, where premiums are rising and capacity is tightening, prioritsing efficiency and providing clear, comprehensive quotation submissions not only expedites the assessment process but also enhances the likelihood of obtaining favourable terms and coverage for your clients.
AIB takes immense pride in its reputation for proficiency and swift response times. With a dedicated team committed to delivering exceptional service, we prioritise promptness in addressing broker inquiries, processing quote submissions, and providing timely assistance at every stage of the insurance journey. By consistently striving for excellence in our operations, we aim to exceed expectations and cultivate enduring partnerships built on trust, reliability, and superior service delivery. We’ve put together a guide for brokers to help us achieve the best outcomes for you and your clients.
To streamline quoting and elevate client service, brokers must prioritise accuracy, utilise email submissions for convenience, communicate effectively with underwriters, leverage technology updates, and adhere to best practices for follow-up. Implementing these strategies not only enhances efficiency but also ensures client satisfaction. Therefore, it’s essential for brokers to adopt these tips and strategies to deliver superior service and achieve optimal outcomes for their clients.
There’s a lot to like about working for yourself, including freedom and flexibility. But it’s not without its risks. Insurance for freelancers can be a safety net should things go wrong and without the right insurance cover your income and personal assets could be at risk.
In a worst-case scenario, you could be forced to sell your home or other assets you’ve worked hard to amass.
There are many different ways to freelance in many different industries. Some options include writing, graphic designing, web development, marketing and virtual assistant.
Each job will have different risks and insurance requirements. So, it’s important to speak with an insurance broker and tailor your insurance program to your field.
But when it comes to insurance for freelancers there are some common insurance policies freelancers typically take out, so let’s take a look at what they are.
If a client believes they’ve suffered a financial loss due to advice or services you’ve provided or failed to provide, they may decide to seek compensation from you.
Professional Indemnity insurance is there to help protect you if this occurs. It can cover the cost of your legal defence and any settlements you may have to pay to the other party up to your policy limit.
“Irrespective of the merits of the claim, having a client take legal action against you can be stressful and time-consuming,” Steadfast Broker Support Manager John Clark says. “It’s also very expensive. PI cover can help you protect your assets and reputation.”
All business owners are legally required to take reasonable steps to ensure the safety of their customers, staff, suppliers and members of the public. The same applies to freelancers.
Public liability insurance may protect you against legal action from individuals or organisations that claim to have suffered an injury or property damage, in the event you are held liable.
“If you’re working with clients face-to-face, in their homes or premises or in public spaces, this is essential cover,” Clark says. “Public liability claims can be protracted and very costly, and having to pay someone out could potentially be ruinous for a sole trader.”
As a freelancer, your income depends on your ability to work. If you’re unable to do so for an extended period of time as a result of illness or injury, you may end up having financial difficulties.
Income protection insurance is a safety net that can help keep you afloat until you’re able to resume operations. Depending on the type and level of cover you choose, you may be able to receive up to 70 per cent of your regular income in monthly payments for the duration of the benefit period in the event of a successful claim.
“As a freelancer, you don’t have sick leave or access to workers compensation insurance, and unless you have significant reserves, being off work can lead to significant hardship,” Clark says.
“Income protection insurance can give you the opportunity to recover without that added financial pressure.”
Whether they consist simply of a desk, laptop and phone or valuable specialist equipment, it’s impossible to work without your tools of trade.
Business and portable equipment insurance may provide protection against loss from damage or theft when you’re working from your home or office, at a client site, or when you’re on the move.
When you’re working for yourself, safeguarding your operations, income and assets is vital. An AIB insurance broker can help you evaluate your requirements and source affordable insurance policies that are the right fit for your risk profile. To get started, contact us today.
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your AIB insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Australia is home to more than 100,000 manufacturing businesses. If yours is one of them, you’re probably familiar with the challenges that come with operating in this sector. There’s no shortage of things that can go wrong and without the right insurance cover in place, it’s easy to end up out of pocket or, in a worst-case scenario, out of business. If you’re exploring insurance for a manufacturing business, these are some of the more common exposures you need to safeguard against.
If a customer suffers an injury to themselves or their property because of using or consuming your products, they may decide to seek compensation. Product liability insurance can help cover those settlements and the costs associated with product recalls.
Public and product liability wording can be extended to cover amounts that the insured becomes legally liable to pay as compensation for financial loss, arising out of a negligent act, error, or omission in connection with the business.
“Say, for example, you’ve fabricated a lift for a shopping centre and that lift proves to be faulty, tenants within the centre may claim they’ve suffered financial losses as a result,” Steadfast Broker Technical Manager Michael White explains.
The nature of your business is an important factor to consider when determining the level of cover you’re likely to need.
Property insurance can help you rebuild and re-open, should your premises be knocked out of action by a natural disaster, while machinery insurance can assist you to replace any plant that’s damaged or destroyed.
Food processing businesses that keep a significant volume of ingredients or stock in cold storage may wish to add machinery breakdown cover to their policies.
If equipment or parts aren’t available or need to be imported, the rectification process can be extremely protracted.
“Specialist machinery can’t be purchased off the shelf,” White says. “It could take months or even years before it’s delivered and then it may need to be commissioned by a representative from the supplier. It’s important business owners understand just how long it can potentially take before their lines are up and running again.”
Business interruption insurance can be critical for manufacturing businesses. Designed to help your enterprise keep operating after a catastrophic event, such as a fire caused by faulty equipment, it can cover ongoing operational costs while you recover.
Business interruption insurance can also provide financial relief if supply chain disruption makes it impossible to obtain the materials needed in the manufacturing process.
“Without the right cover in place, a significant disruption to production could send your manufacturing business to the wall,” White says.
“Business interruption insurance is there to keep you ticking over financially until you’re able to recommence operations.
Regardless of the nature of your business, there’s always a risk of accidents and injuries in the workplace. Implementing stringent workplace health and safety procedures and ensuring all employees receive adequate training before setting foot on the factory floor can help you reduce it.
Your employees are entitled to seek compensation for any physical or mental injuries they incur while on the job. Should that occur, workers’ compensation cover can help you defray the cost.
If you haven’t reviewed your business insurance for a while, now is a great time to do so. A broker can help ensure you have the right cover for your specific business needs and circumstances.
Contact an AIB Insurance broker today to discuss your manufacturing cover needs.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
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