After a major insurable incident/loss it is critical to understand and follow the various claims management processes to maximise your policy entitlements for your business.
This process begins as soon as your business experiences negative impact. In the example of a fire on your business premises the first priority is to ensure public safety by calling the emergency services. Following this it’s essential to notify your insurance broker, Mitchell Insurance Management, a fire has occurred resulting in damage and business interruption to formally lodge an insurance claim.
You do not want to find out at time of claim that you are under insured and do not have enough funds to fix the damage or replace the items. The Insurance Council of Australia examined small to medium-sized businesses and found that 26% have no form of general insurance. Under insured businesses face a huge financial risk of high unplanned costs which can’t be covered by the savings made in paying a smaller premium.
In the event of a work-related accident, occupational health and safety (OH&S) and work health and safety (WHS) laws require that injured workers have access to first aid, workers’ compensation and return to work rehabilitation.
It’s your responsibility as an employer to:
maintain a safe workplace
maintain current workers’ compensation insurance
protect yourself and your workers from financial hardship in the event of a workplace injury
But what do you need to know about your workers compensation insurance and are you paying the right amount?
In general insurance there are two letters which sound similar – a Letter of Authority and a Letter of Appointment. They have expressly different purposes for you, the insured, to give your ‘okay’ for Mitchell Insurance Management, as your insurance broker, to act in a specific capacity for you.
Insurance can be incredibly complicated to fully understand. When insuring businesses or complex risks, it pays to have access to an insurance expert who can spend time with you, review your unique situation, and provide advice and guidance on the type, extent and value of insurance required to protect your assets.
This is a confronting question for most businesses. How much would you need to turnover in sales to replace lost profit? If you are working on a profit margin of 10%, for every $100,000 of profit lost to the business you will need to turn over another $1,000,000 in sales to replace the lost income. Or put simply you will do 10 times the amount of work to cover the lost money.
How would your business cope if one or two of your major customers fell over? Trade Credit Insurance protects your cash-flow by covering your losses if a debtor defaults on payment or becomes insolvent, giving you the peace of mind to focus on running your business. The security it provides may also boost your borrowing capacity with your bank.
In today’s ever-demanding business environment, the respective business entity, it’s directors and officers are under increasing scrutiny, and it has become common place for allegations of wrongful acts to be made.
The directors and officers in your company are in a position of significant responsibility. Whichever sector your company operates in, the directors and officers, including managers and supervisors can face allegations and claims for which they may be held personally liable. Even in a company with a limited liability status, personal liability is unlimited.
Any allegations of wrongdoing need to be investigated and defended accordingly. The legal defence costs to defend allegations of wrongful acts, (aside from any actual penalty if found guilty), can be financially crippling for businesses and individuals, even if the case doesn’t reach court. This means directors and officers personal finances are exposed and at risk.
Every business faces risks, whether you’re just starting out or if you have been running for a number of years. Those that practice good risk management create a positive risk culture, and reduce the likelihood of a liability event occurring. You’ll also increase the confidence within your business by demonstrating that risks are proactively identified, assessed and managed. It will seem less like a ‘chore’ and more a part of everyday business. Businesses which incorporate risk management into their everyday business are more likely to be proactive than reactive. Why wait to learn what is a risk to your business when you can avoid it in the first place?
An Insurance Broker IS a specialist who not only has the expertise to place the right cover, at the right terms for your business, but importantly like this video from Vero quite rightly depicts, has the knowledge and capacity to handle your claims professionally, efficiently and always acting in your best interests.
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