The Consequences of Policy Cancellation

The Consequences of Policy Cancellation

In past months, the business environment has changed drastically, with the coronavirus pandemic causing widespread stress, devastation and uncertainty.

For many individuals, the unfamiliar events unfolding across the globe have left them wondering whether or not various types of insurance are still worthwhile. Their business’ circumstances are likely far from the reality they once knew, so they may no longer need the same cover they once sought out – right?

Whether it’s Fire and Property insurance, Business Interruption insurance, Public Liability insurance or the like, experts have strongly suggested against discontinuing your cover in the midst of the COVID-19 outbreak.

While policy cancellation may be tempting, it can be incredibly harmful to your business’ ongoing viability, especially when many organisations are already under immense financial pressure.

In the following article, we’ll be breaking down why staying covered is so important, and discussing some of the key types of insurance individuals are questioning as of late.

Fire & Property Insurance

Many workplaces are currently unoccupied, with employees working remotely to aid in the containment of coronavirus in the community.

Your business may be closed, but this doesn’t mean that the risks your premises are subject to vanish. Unprecedented events can still occur, leaving you exposed to significant financial hardship, which may be all the more challenging to deal with in the current climate.

Even if your workplace isn’t as heavily trafficked as usual, fires, burst pipes, storms, burglaries, and the like can all still happen. Before cancelling your insurance policy, it’s important to consider how your business would cope and, ultimately, if you would have the means to survive this crisis, under such additional stress.

Public Liability Insurance

Similarly to the above, there is no saying that just because the environment within which you’re operating now has changed, you will no longer be at risk of being found liable for a certain occurrence.

If an unforeseen event happens, for instance, a pipe bursting and flooding a neighbour’s property or fire damaging the building you rent, this can end up being incredibly costly if you don’t have Public Liability insurance. 

In such cases, you’d need to defend your business, which, in of itself, can be a relatively expensive process. Beyond this, if your defence is unsuccessful and you’re found to be liable for the damages, many businesses would not have the means to recover from such financial strain.

It’s also worth taking into consideration that, in many cases, such as a fire that causes notable damage to property, the repair won’t happen overnight. This means that, if the impacted business is uninsured for such occurrence, they’ll need to cover the cost of repair, while also losing a significant portion of their future profit during the reparation process.

With this in mind, remaining insured in these uncertain times is essential in preserving the long-term viability of your organisation and helping you stay on track for future success in the event of the unexpected.

 

For more information, or if this article has brought up any insurance queries, please don’t hesitate to get in touch with your insurance broker.

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.

The Road out for Businesses: Preparing for a Post-Pandemic World

The Road out for Businesses: Preparing for a Post-Pandemic World

Managing the fallout from COVID-19 has become an incredibly daunting prospect for many Australian businesses, proving to be an undeniably challenging task.

With the economy plummeting, new pressures are emerging, bringing about an array of obstacles organisations must now overcome if they wish to maintain the ongoing viability of their operations. 

Across Australia, unemployment is mounting, with 2.16 million individuals out of work and accumulating less disposable income than they once would. With this in mind, economic recession and uncertainty have seen the collapse of buyer demand. Businesses are also facing: 

  • Significant regulatory modifications
  • Supply chain interruptions
  • Health and safety workplace implications

Implementing improvements and adjustments on an ‘as required’ basis or, in other words, in response to issues as they arise, will not be sufficient for organisations looking to survive the pandemic. By laying the groundwork now, introducing strong policies and procedures for managing the ever-changing business environment, companies can prepare for a prosperous future.

What To Be On The Lookout For

For many, business at the moment is relatively slow – so it’s the perfect time to start planning for the weeks and months to come.

Devising an updated organisational strategy will be crucial as, unsurprisingly; it likely won’t be ‘business as usual’ for some time. However, once restrictions do start being lifted, your business needs to be in the position to quickly, efficiently and effectively implement a clear plan-of-action; otherwise, you risk jeopardising your future success.

So, what should you be on the lookout for when transitioning out of strict COVID-19 restrictions?

When you’re looking ahead and preparing for the road out, taking the following points into consideration is absolutely crucial:

  • Is your business adequately staffed?
  • What will your business’ operations, workforce and the like look like post-pandemic?
  • How will staff members return to the workplace? This process may be staggered, as opposed to bringing back all employees at once. If this is the case, which team members will return, and in what order?
  • Are you prepared for some employees, for instance, those who are immune-compromised, choose to continue working remotely for some time?
  • If your premises have been unoccupied for a prolonged period of time, have they received the appropriate upkeep? Are they in a suitable state for employees to return to the workplace, in that they comply with relevant health and safety regulations?

By tackling challenges head-on and taking sufficient measures to secure the future of your business now, you’ll be giving your company a fighting chance at surviving the COVID-19 pandemic.

 

For more information, or if this article has brought up any queries, please don’t hesitate to get in touch with your insurance broker.

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.

Risk & Liability Post-Pandemic: How Will Employees be Impacted?

Risk & Liability Post-Pandemic: How Will Employees be Impacted?

The rapid spread of COVID-19 across the globe has brought about an array of distinct risks, which, in many cases, individuals haven’t ever had to consider before.

The day-to-day life of Australians has changed drastically in just a matter of weeks, with their professional and personal lives straying far from what they once were. 

Where possible, employees are now working remotely, which has, thus far, helped to contain community transmission of COVID-19. However, in the weeks and months to come, it’s expected that restrictions will slowly start to lift, with many employers welcoming staff’s staged return to the office or worksites.

While we’re undeniably taking commendable steps in the right direction, if individuals fail to manage the risks posed by COVID-19 sufficiently, future outbreaks will become all the more probable. With this in mind, employers inhibit a crucial role in preventing infections, both now and during the integration of their employees back into the workplace. 

How Will The Workplace Be Different?

Just as prior to COVID-19, employers have a legal obligation to adequately manage health and safety risks on their premises. However, the guidelines and regulations with which they must comply have changed and, in many cases, it’s to be expected that workplace processes will become far stricter, if they haven’t already.

It’s well known that coronavirus is highly infectious; thus, there are numerous, reasonably practical steps employers ought to be taking to keep their staff members safe. Beyond this, considerations also need to be made for dealing with third parties, such as customers and bystanders, who may be interacting with staff or attending worksites, offices and the like.

As an employee, contractor or volunteer, your work life will inevitably change upon your return to the workplace, with employers introducing systems for:

  • Ensuring staff members maintain the appropriate levels of hygiene;
  • Ensuring all staff abide by physical distancing requirements;
  • Managing and responding to infections or suspected cases appropriately.

While these new processes may seem rigorous and inconvenient, such action is absolutely paramount in keeping employees, as well as the greater community, safe during these uncertain times.

 

For more information, or if this article has brought up any queries, please don’t hesitate to get in touch with your insurance broker.

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.

Your Guide to Cyber Security During the COVID-19 Pandemic

Your Guide to Cyber Security During the COVID-19 Pandemic

In the midst of the coronavirus pandemic, 88% of Australian businesses have now either encouraged or required their staff members to work remotely.

While this is, of course, an essential measure to take in containing the spread of COVID-19, such arrangements can have numerous concerning security implications for organisations. 

In many cases, individual’s devices aren’t equipped with the appropriate technology to keep data safe for the duration of these current flexible working arrangements. This has, inevitably, left staff members particularly exposed to the threat of security breaches, with cybercriminals attempting to take advantage of these compromised situations.

Malware infections, unauthorised access, insecure devices and failed data security systems can be incredibly damaging to a business’ ongoing feasibility and, ultimately, their longevity. The confidential information of your employees, customers and business may be at risk, so it’s important to take swift action now as to avoid otherwise preventable breaches in the weeks and months to come.

Don’t leave your business susceptible to cyber attacks. There are various practical steps that can be taken to help keep remote access to your business’ networks secure.

 

Keeping Your Business’ Information Safe

In an effort to keep Australian businesses protected in the current climate, the Australian Government have shared a number of actionable, proactive tactics for enforcing reliable cyber security practices.

In summary, these include:

  • Reviewing and refining your business’ existing continuity plans and procedures.
  • Making sure that your security systems have been updated as required.
  • Preparing for the higher demand on remote access technologies by increasing your cyber security measures. Before rolling out any changes, make sure to conduct any appropriate tests.
  • Ensuring that, if you use a remote desktop client, it’s secure.
  • Checking that the laptops, phones and other work devices your staff members will be using are secure.
  • For access to systems, such as cloud services, introducing multi-factor authentication processes.
  • Providing staff and stakeholders with any relevant information and/or training to ensure they’re well equipped to follow the expected cyber security practices.
  • Considering other ways to minimise the risk of data breaches, such as ensuring staff have effective physical security measures in place, especially if they’re working with particularly sensitive information.

 

For any insurance queries this article may have raised, please do not hesitate to get in touch with your insurance advisor or broker.

 

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.

Managing the Temporary Closure of Your Business

Managing the Temporary Closure of Your Business

With two thirds of Australian companies taking a hit to revenue as a direct result of COVID-19, many business owners are now making the tough decision to temporarily close their doors.

A growing number of organisations are finding that, due to coronavirus restrictions, they have no choice but to rethink the way they conduct their day-to-day operations for the time being. Whether this means bringing business matters to a complete halt, or organising for staff to work from home, your premises may be left unattended for an extended period of time.

These are unusual circumstances and, because of this, it’s important to understand what action you can and, ultimately, should be taking to protect your workplace while it’s left unattended. 

As there’s no saying when Government restrictions will officially end, your organisation needs to be both alert and adaptable in the weeks and months to come. The business landscape is ever-changing, even more so given the existing climate; so building a strong approach to risk management is crucial.

 

Measures for Risk Management

Before leaving your workplace, there are various measures you can take to help keep your business’ premises safe and secure for the foreseeable future.

Steps for improved risk management include the following:

  • Waste: Before closing, remove any external waste, pallets or empty skips.
  • Waste Bins: Empty and relocate waste bins, ensuring they’re kept at least 10 metres from the building if possible. If waste bins can only be stored closer to the premises, lockable lids are suggested.
  • Fire Systems: Check the functionality of any fire and/or sprinkler systems.
  • Fire Doors: Make sure that all internal fire doors are closed and secure.
  • Building Utilities: Non-essential electrical devices and building utilities ought to be shutdown. In addition to this, non-essential service, gas valves and the like will need to be isolated.
  • Inspections: Conduct periodic internal and external inspections of the premises when possible. It is, of course, essential that you take any relevant Government restrictions into account before and during your inspections.
  • Physical Security: Ensure that fences, window, shutters, gates and other physical security measures are set-up as required.
  • Intruder Alarm: Make sure your premises are equipped with the appropriate intruder alarm system and remote signalling capabilities. By having multiple key holders nearby, your business will have the means to respond to alarm activation quickly.
  • Maintenance: Essential maintenance will need to continue, so long as this is reasonably practical given the circumstances. This may involve keeping gutters and drains clear of debris, as well as ensuring remote alerts from Building Management Systems (BMS) receive the appropriate response.
  • Dangerous Goods: Make sure any dangerous goods on your premises are stored as usual and that, in keeping them there, they will remain secure.

 

It’s also worth noting that, if staff members are taking on additional tasks or responsibilities due to a limited employee presence, they must not complete work for which they’re not qualified or trained. This includes tasks that involve operating certain machinery, and working at height.

For any insurance queries this article may have raised, please do not hesitate to get in touch with your insurance advisor or broker.

 

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.

How Your Broker Can Help During These Uncertain Times

How Your Broker Can Help During These Uncertain Times

Recent events have seen the COVID-19 pandemic sweep across the globe, dramatically changing life as we know it.

As a community, we’re continuing to take measures to lessen the impact of coronavirus in Australia, such as working remotely and practising social distancing. As these uncertain times play out, it’s normal to feel uneasy and, if you do, you’re certainly not alone.

Given the existing climate, your broker can no longer meet with you in person. However, they remain committed to providing you with insurance advice and support when you need it most. As a valued client, you can rely on your broker to continue delivering the quality service you’ve grown to expect. 

There are various alternative contact options now in place.  Your broker is now accessible through a range of digital communications, including phone and email, and they can set up a video meeting with your for more in-depth matters. This allows you to stay well informed on insurance matters as the coronavirus pandemic unfolds, while also helping to keep everyone safe. 

In the weeks and months to come, there are numerous ways your broker may be of assistance.

 

Share Valuable Industry Knowledge

The insurance sector is inherently complicated and, in the midst of the coronavirus pandemic, this has only been further amplified.

The current landscape is changing rapidly and, when it comes to insurance, staying up-to-date on the latest matters that will impact you may prove to be difficult. As an expert in the field, your broker understands the intricacies of insurance and can ensure you’re well informed as events progress. 

Your broker is just a phone call or email away, giving you the invaluable peace of mind that, if you need clarification, advice or support, it will be well within your reach. In what’s already a particularly distressing time for many individuals, this can help alleviate unnecessary additional stress.

While the circumstances under which your broker provides their service have changed, they’re still just as committed to delivering relevant, technical industry expertise you can rely on.

 

Provide Information From Insurers

Your broker partners with you and, in doing this, takes the hard work out of staying up-to-date on the latest news and updates from relevant insurers.

Having already established a strong relationship with your insurer, a broker can advise you of any policy changes that may impact you. This means that, if you need to make a claim, you’ll be well informed as to whether the given circumstances will be covered under your policy.

During these uncertain times, a broker can help bring some clarity to the insurance matters affecting you.

 

Making a Claim

With shocking events unfolding worldwide, we’re living in incredibly volatile times. This, of course, gives rise to the very real threat of unforeseen events transpiring, some of which may have been all but inconceivable just a few months ago.

Your broker has a deep understanding of your insurance policy and, because of this, can promptly address any queries you have as they come up.

If, at any stage you do need to make a claim, your broker will be there to guide you every step of the way. They can assist you with everything from investigating and actioning your claim to liaising with relevant insurance providers – taking the hard work out of this process.

For more information, or if this article has brought up any queries, please don’t hesitate to get in touch with your insurance broker.

 

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.

What you should do in the Event of an Insurance Claim

With an insurance broker in your corner, you’ll be well equipped to overcome setbacks and get back to business in the event of a claim.

In business, small setbacks all too often develop into significant, costly long-term burdens. Beyond impacting revenue, such downfalls can hinder a company’s professional reputation and threaten the livelihoods of existing employees.

By arming yourself with a suitable insurance policy, if the unexpected does happen, you’ll have the means to get back on your feet sooner.

If you find yourself in a position where you need to make a claim, there are various key steps you’ll need to take.

1. Get Advice & Get Insured

In the event of an insurance claim, you’ll be glad you invested time into finding a broker who understands your distinct business context and who, consequently, has paired you with an appropriate cover solution.

‘Insurance speak’ can be confusing to the average person; however, with a strong understanding of such jargon, your insurance professional will ensure you fully understand the implications of your policy.

By taking precautions before committing to a policy, you can rest at ease knowing that, if you do need to make a claim, the process of doing so will be relatively straightforward.

2. Manage the Event

Before lodging an insurance claim, you’ll need to manage the event at hand to prevent further damage or loss. Taking any necessary action such as evacuating the premises and assessing the causes of the issue is crucial, so long as this doesn’t jeopardise the safety of involved individuals.

3. Contact Your Insurance Professional

You’ll then need to notify your insurance broker of your circumstances and inform them that, to the best of your knowledge, such loss or damage will be covered under your policy.

Working on your behalf, your insurance professional will start taking the required measures to formally investigate and action your claim. With a strong understanding of the technicalities surrounding various policies, such as their terms and conditions or exclusions, an insurance broker can be an incredibly valuable resource for those in this position.

Those who haven’t established a relationship with an insurance broker will likely find themselves in a far more difficult situation. This is because, even if they have no prior knowledge of insurance, they will need to review their Product Disclosure Statement and assess the validity of their claim/s themselves. After doing so, if an individual believes they’re eligible, they will need to contact their insurance provider directly to pursue their claim.

4. Gather Relevant Documentation

In terms of preparing and collating relevant paperwork, your insurance broker will be invaluable.

Ensuring you have collectively completed all required paperwork to get your claim in motion, an insurance broker can speed up the overall process. They understand which information is crucial to include in an insurance claim and, because of this, can help ensure that any key details aren’t overlooked.

5. Get Your Clean-Up in Motion

If your insurance provider is locally based, they may have existing relationships with service providers who can assist you in getting back on your feet.

Whether you need help cleaning up your premises, natural disaster assistance or the like, it’s definitely worth asking your insurance broker if there’s anyone they would recommend.

6. Overcoming Financial Pressure

While your business may not be in full swing, it’s likely that numerous employees will still require wages in the weeks or months following an event. In addition to this, ongoing costs, such as bills, may place further strain on your business’ finances.

However, in some instances, your insurance broker will be in the position to organise progress payments with the insurer. This can help your business address any ongoing financial demands while your claim is being processed. Thus, it’s suggested that you confirm the conditions of your policy with your insurance broker.

7. Your Claim Has Been Processed: What Now?

Once your business is back up and running, it’s a great time to review your existing policies with your insurance broker.

If you have to make a claim, or have any queries regarding the topics discussed in this article, please with your insurance advisor.

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.

In the Current Climate: Are You Better With a Broker?

In the ever-changing modern environment, insurance is a necessity for organisations across Australia, providing them with valuable peace-of-mind in a dynamic business climate.

During their day-to-day operations, businesses are exposed to a plethora of risks. Being aware of, assessing and managing such threats is vital. This is because, in the event of a disaster, those who haven’t acquired the appropriate cover often leave themselves exposed to high costs.

If you incur substantial losses, will you have the means to bounce back?

Acting with and on behalf of you, your insurance broker will provide professional guidance and advice so that you can make informed cover decisions. Examining your needs, budget and the like, an insurance professional can assist you in discovering a relevant, suitable solution for your distinct requirements.

It all comes down to understanding what’s important to you and, consequently, finding an insurance policy that will help keep your business protected.

 

How Can a Broker Help You? 

With extensive experience in the insurance landscape, brokers understand the complexities involved in matching someone with cover that works for them.

Unsure whether to enlist expert assistance from an insurance broker? The following are some of the top reasons that others in your position choose a broker for all of their insurance needs:

  • As a qualified insurance professional, your broker has specialist knowledge in the field. Brokers apply an objective standpoint and advanced understanding of insurance concepts, which is all but unmatched by the average person buying cover directly online.
  • Brokers partner with you, taking the hard work out of becoming insured. This gives you more time to focus on your business and/or alternative commitments, without compromising on the quality of your cover solution.
  • Insurance brokers work to understand your needs, thoroughly assessing your unique risk profile. In doing this, they deliver a personalised experience and results that are tailored to your distinct needs, rather than using a ‘one size fits all’ approach.
  • The insurance environment is rapidly evolving and because of this, emerging issues are constantly coming to light. Insurance brokers are at the forefront of the market, keeping you informed on the latest issues that could impact you.
  • Brokers are advocates for their clients. This means that, in the midst of crisis, if you need to make a claim, your insurance broker can remove a significant level of stress from the process.

For more information, or if you have any queries regarding the topics discussed in this article, please speak with your insurance provider.

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.

The Australian Bushfires & Their Impact on the Insurance Industry

In recent months, Australians have come face-to-face with some of the most catastrophic bushfires in history, spreading devastation across the nation.

During the 2019-2020 bushfire season, fires have ravaged through more than ten million hectares of land, taking the lives of at least 29 people and leaving over 2,000 homes destroyed in their path.

The harrowing consequences of this national disaster will likely be endured well into the future, with the bushfires pushing more than one hundred threatened species towards extinction. It’s now expected that more than one billion animals have perished.

Recently, significant rainfall across Victoria and New South Wales has aided fire fighters in establishing greater control of the fires and the speed at which they are spreading. This has, in turn, dramatically reduced bushfire activity in impacted areas. However, as of January the 21st, there were still 87 active bushfires in New South Wales, along with another 17 burning in Victoria.

The Australian bushfire crisis remains all but over, and in the midst of disaster, the threat of further destruction and anguish remains inadmissible.

 

Fears of Underinsurance

Since the 8th of November, there have been over 13,750 bushfire-related insurance claims lodged, totalling more than $1.34 billion in compensation. As further assessments of bushfire impacted communities are made possible, this figure is expected to grow.

However, as homeowners prepare to rebuild, it’s feared that a number of individuals will discover the funds they are insured for are insufficient. With the intention of avoiding expensive premiums, many people opt for a lower sum. While this may save costs at the time, when disaster strikes, individuals can find themselves underinsured.

Underinsurance can be particularly damaging for communities, leaving claimants without the required funds to start rebuilding their properties.

In some instances, when taking out their insurance, homeowners also overlook the need to rebuild in accordance with new bushfire standards. This can require more expensive materials and, ultimately, adds further strain on those who are already experiencing significant losses.

 

Response from Insurers

In a bid to stop people in affected towns panic-buying insurance, Suncorp and IAG have embargoed 67 areas across Victoria and New South Wales. This means that various brands, including AAMI and CGU, will no longer be supplying those in certain locations with new policies, additional cover requests until the embargo is lifted. The number of embargoes in effect is constantly being reviewed and, once it’s determined that the imminent threat has passed, insurers plan to lift restrictions accordingly.

However, not all insurers have boycotted bushfire-prone areas, with providers such as QBE continuing to offer cover to locals from threatened towns.

 

Reinsurance Implications

Despite the sheer magnitude of the ongoing bushfires, it’s expected that their impact on reinsurance will not exceed that of previous events.

Large remote areas were hit the hardest by the fires, and in the majority of instances, less than 10,000 people resided in affected towns. The current bushfire has left one property exposed every 4.5km2, compared to more than one every 1km2 during prior significant fire seasons (ACT in 2003, Victoria in 2009, NSW in 2013).

The terms of reinsurance contracts impose certain limitations, such as those relating to the total duration of the disaster and the distance or territorial boundary covered.

Due to these conditions and the circumstances surrounding Australia’s ongoing bushfires, it’s expected that reinsurance costs will not be as substantial as prior, similar cases. For instance, Black Tuesday and Black Saturday, where insured loss totalled $2.16b and $1.76b consecutively.

If you have any queries regarding the topics discussed in this article, please speak with your insurance advisor.

 

Sources

https://www.insurancebusinessmag.com/au/news/breaking-news/aon-reveals-impact-of-the-australia-fires-on-reinsurance-210475.aspx

https://www.dailytelegraph.com.au/bushfiresupport/fathers-son-newlyweds-21-lives-lost-to-nsws-deadly-bushfires/news-story/0ba931abc7ce3f1bac820429873b75c2

https://www.cnet.com/how-to/australian-fires-everything-we-know-about-the-crisis-and-how-you-can-help/

https://www.insurancenews.com.au/breaking-news/underinsurance-fears-flagged-as-bushfire-losses-hit-1-34-billion

https://www.theguardian.com/australia-news/2020/jan/21/australia-fires-has-the-rain-put-out-the-bushfires-and-could-they-flare-again

https://sydney.edu.au/news-opinion/news/2020/01/08/australian-bushfires-more-than-one-billion-animals-impacted.html

https://www.theguardian.com/australia-news/video/2020/jan/22/why-it-could-take-a-century-for-australias-animals-to-recover-from-the-bushfires-video-explainer

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.

Is Your Business Protected Against Ransomware Attacks?

Ransomware software is rapidly evolving, with advancements leading to a growing number of increasingly sophisticated attacks on Australian businesses.

Ransomware attacks are conducted by perpetrators who use malicious software to encrypt computer files, making them inaccessible. Once the software has been successfully downloaded onto the targeted computer, the victim’s data is held at ransom by the cybercriminal. Cyber attacks of this nature can be incredibly difficult to track, putting valuable company information at risk and imposing significant security threats.

 

The Impact of Ransomware on Australian Businesses

There have been more reported ransomware attacks during 2019 than in the entirety of 2018 but, alarmingly, 49% of Small and Medium-Sized Enterprises (SMEs) don’t have a response plan for managing data breaches. Without strong systems in place to manage incidents, organisations may find themselves still recovering from ransomware attacks weeks, if not months, after their occurrence.

A recent report has found that, of those surveyed, 47% were unaware of or didn’t understand their obligations under the Notifiable Data Breaches scheme. When an organisation experiences a data breach, they must notify any individual whose personal information is directly involved in or affected by the incident. If those who aren’t familiar with the requirements outlined in the Notifiable Data Breaches scheme fail to report a breach, they may unknowingly expose their business to significant financial penalties.

Typically, large organisations have more extensive response plans for managing ransomware attacks than SMEs. It’s not uncommon for SMEs to experience “breach fatigue” and, as a result of this, underestimate their organisation’s exposure to harmful cyber attacks. When only 27% of Australian SMEs have cyber risk insurance, the concerning nature of such assumption is amplified.

 

How to Protect Your Business Against Ransomware Attacks

By ensuring you take the appropriate measures, you can lower your risk of falling victim to ransomware attacks and avoid exposing your business to catastrophic security breaches. With a comprehensive response plan, you will be better prepared to manage the fallout, protect your data and make a quick recovery.

Some simple ways you can protect your business against ransomware attacks include:

  • Being cautious of suspicious, unexpected emails;
  • Ensuring you are using up-to-date anti-virus software;
  • Keeping at least one reliable back-up of your data and performing regular tests to ensure information can be restored;
  • Creating a comprehensive incident management plan.

Find out which cyber risk insurance policy would be best suited to your needs by getting in touch with your insurance advisor.

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.