Travel Insurance, Corporate Travel Insurance

ASIC Orders Lenders to Improve the Marketing of Travel Insurance

As a result of pressure from the Australian Securities and Investments Commission (ASIC), a range of banks and credit card issuers nationwide have been forced to better disclose the terms and conditions of Travel Insurance policies marketed through rewards schemes.

An increase in consumer complaints to the Financial Services Ombudsman regarding the terms of credit card travel insurance prompted ASIC’s investigation into the problem. The complaints included uncertainty around who was covered by the policy, as well as the extent of exclusions and eligibility requirements.

Upon investigation of 17 credit card companies, ASIC found that many cardholders were not entitled to Travel Insurance as a result of specific exclusions and eligibility criteria. Several cardholders were therefore left out of pocket as a result of accumulated travelling expenses that they had originally assumed they were covered for by their credit card policy.

The investigation found that many of these cardholders were exempt from Travel Insurance cover under certain circumstances:

  • Cover was denied if cardholders did not meet monthly spending thresholds
  • Cover was limited to only one person, so supplementary cardholders were not protected by the policy
  • Cover was denied to some cardholders if they used their rewards points to pay for the cost of travel

ASIC found that in many cases, these terms and conditions were not clearly stated by the financial institutions. Several institutions failed to provide this information on their website, or direct links to it from their website, resulting in confusion amongst credit cardholders.

Organising the right Travel Insurance policy is an essential part of preparing for your trip. If you are uninsured or have inadequate cover, you (or your family) can be personally responsible for covering any medical or other costs resulting from unexpected incidents or accidents.

You should make sure your Travel Insurance covers all medical expenses for injury or illness, as well as theft of valuables, damage to baggage and cancellations or interruptions to flight plans. Accidents can happen to anyone, and medical costs overseas can reach hundreds of thousands of dollars.

We can provide advice to help you make sense of a range of Travel Insurance and Corporate Travel policies and source the most appropriate cover for your personal or business needs.

Speak to us about adding Travel Insurance to your policy today.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Property Cover, Property Insurance

NSW Storms Highlight Importance of Property Cover

The clean up across New South Wales is continuing after last month’s catastrophic storms, which affected thousands of homes and businesses across the state.

The Insurance Council of Australia stated that insurance companies have received almost 30,000 claims to date, and expect this figure to rise; estimating damages payouts as a result of the storms to total over $500 million.

The most recent storms are some of the worst to occur in New South Wales in over a century, but unfortunately the nation as a whole is all too often exposed to the unrelenting force of Mother Nature. The Queensland floods of 2011 affected over 5000 homes and businesses, while bushfires in 2012-2013 completely destroyed 33 properties in New South Wales and a further 170 in Tasmania. These natural disasters most often affect property and assets, and can prove to be costly to recover from.

To date, most of the claims lodged in relation to the NSW Storms have been property-related; the most common being to cover costs associated with repairing and replacing broken tiles, smashed windows and ruined carpets. This highlights the importance of protecting your business property against the destructive effects caused by the forces of nature.

The right Property Insurance policy can protect your assets and minimise the financial impact on your business in the face of severe weather conditions. It may also cover your business for theft, malicious/accidental damage or machinery breakdown.

Property Insurance can cover many property types from warehouses, shopping centres, factories and unit/apartment blocks as well as valuable business assets such as your work tools or portable equipment.

Depending on the value of your insured property and equipment, as well as how it is utilised and managed, different insurance solutions can provide your business with cover that suits your specific needs.

For more information, speak to your PSC Connect Authorised Representative.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Cyber Insurance, Cyber Crime

Most Businesses Significantly Underinsured for Cybercrime

According to the Ponemon Institute’s 2015 report ‘Global Cyber Impact’, 80% of companies worldwide are likely to suffer a data breach within the next 12 months – yet only 1 in 5 have a Cyber Liability policy in place.

Surveying 2,243 company representatives across 37 countries, the report released startling conclusions for today’s business owners. Despite the statistics indicating an overwhelming likelihood of a cyber breach, the vast majority of companies are significantly under-insured in this area, with most businesses more likely to purchase fire & property insurance than to take out a Cyber Policy.

This can be attributed to a lack of knowledge surrounding Cyber Coverage and Cybercrime.

SMEs Most Likely Targets of Cybercrime

Cyber criminals know that large corporations have extensive budgets for Cyber Security. This has resulted in hackers moving lower down the chain and specifically targeting SME businesses, as their security systems are easier to infiltrate and they often won’t have the administrative, financial and legal resources to fight back.

The cyber criminals of today are often advanced criminal organisations, looking for private information that they can sell on the black market. Any business that stores personal or sensitive information on clients, staff or management, or that uses cloud & IP solutions, has become a desirable target for hackers.

Cyber Risk is Not Covered in a General Liability Policy

While some business owners believe that their General Liability policy covers cyber risk, others assume their company is too small to be at risk of a data breach.

If your business relies on the internet, email, websites or computer software to operate, then your current insurance does not cover you for one of the most important aspects of your business: your data.

In order to appropriately protect your business from a cyber attack, you must have a specific cyber insurance policy in place. Cyber Insurance is designed to address the exposures you face from relying on the internet and computer programs, as well as from storing private information about your clients.

Depending on your business needs, a Cyber Insurance policy may cover:

  • Privacy Protection – Third party claims from a failure to keep data secure.
  • Breach Costs – Reimbursement of your own costs when a data breach occurs.
  • Business Interruption – Compensation for lost or reduced revenue.
  • Cyber Liability – Third party claims as a result of content in email, on the intranet, extranet or website.
  • 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 consultant fees, where a hacker holds, or threatens your network, programs or data.

Speak to your PSC Connect Authorised Representative to find out more about cyber risks. With extensive knowledge in the area, they can assess your specific needs and recommend the most appropriate insurance solution for your business.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.