cyber insurance

Top Concerns for Today’s Business Owner

Leading international insurer Zurich has recently released their third annual global SME survey, revealing cybercrime, reputational damage and impact of competition to be the top concerns for today’s business owner.

The report surveyed 2,600 C-suite executives and managers in SMEs across 13 countries in Europe, the Americas, and Asia Pacific.  It determined that concerns about cybercrime have tripled since 2013, from 4 per cent to 11 per cent, while concerns about reputational damage, have almost doubled, from 8 per cent to 14 per cent.  Both of these perceived risks featured on the first survey was in 2013, but have clearly continued to dominate the list of business concerns.

With effective risk management strategies and appropriate insurance in place, it is possible to reduce these risks to your business.

Protecting Your Business From Cybercrime

The fear of being victim of a cyber attack is not unfounded.  The Threat Intelligence Brief report [Webroot, 2016] found Australia to be a lucrative market for cybercriminals.  The report found Australian-based cyber threats, including malicious IP addresses, suspicious URLs and phishing sites, more than doubled in 2015.  Cybercriminals target a range of businesses, often preying on SMEs that hold personal or sensitive information such as customer credit card information or employee bank details etc.

As a business owner you must be vigilant. There are certain steps you can take to minimise the risk of being the next victim of a cyber attack, such as defining internal cyber security measures, being extremely careful with sensitive information, and having a data breach response plan in place. A comprehensive insurance policy is also necessary for helping to protect your assets and your business against considerable financial loss.  Cyber Insurance can cover the key issues that your business may face in relation to using and protecting data and utilising digital media and communications.

Protecting Your Business Reputation

As a business owner, you know the importance of your company’s reputation.  Businesses with strong reputations attract better people, are perceived as providing more value, and have more loyal customers who are willing to buy broader ranges of products and services. Businesses with stronger reputations tend to be more successful, so protecting that reputation is understandably a huge concern for business owners.

There are a huge number of potential incidents that can negatively affect your business’ reputation. Health and safety incidents to product recalls; quality control errors; business and service interruptions; financial losses; ethical violations; allegations over business practice; and facing legal action from a third party are all examples of the risks that can affect businesses.

The slightest unintentional error can quickly escalate into a major incident, which damages your reputation, costs you resources and affects your bottom line.  In order to reduce the likelihood of this happening, it is vital to effectively manage your business risk. Your insurance broker can offer risk management advice and help to ensure your company is equipped with the necessary resources to mitigate the effects of a reputational risk crisis. Your broker will speak to you about the specific risks that your business is exposed to, and help you put in place a comprehensive insurance plan that addresses all of these risks.  By ensuring you have the right insurance in place, you will be able to get your business back up and running again as quickly as possible.

Contact me to find out more about effectively protecting your business from cyber and reputational risk.

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.

insurance disputes

Insurance Disputes on the Rise: You Need Your Insurance Broker More Than Ever

According to a recent report issued by the Financial Ombudsman Service, insurance disputes have rapidly increased in the last financial year; returning to the highs seen in 2011-12 when several natural disasters struck the country.

General Insurance Lead Ombudsman John Price said that this increase is a result of a combination of factors including a lack of resourcing on the part of insurers which has lead to an increase in the out-sourcing of complaints handling.  Social media also appeared to be raising awareness about complaints processes, which is likely to increase the number people coming forward, he added.  Furthermore, the FOS introduced shorter timeframes for resolving disputes and insurers were struggling to meet those deadlines.

With this rise in claim disputes, it’s clear that claims are a contentious issue for insurers and consumers alike.  As such, the importance of using an insurance broker has become clearer than ever. Using an insurance broker should make you less likely to have a dispute. Additionally, with an insurance broker acting on your behalf, for many clients it also makes the entire claims process a lot less of a headache. Here are just some of the ways that your insurance broker can be of assistance for your business in the face of a claim:

  • Sourcing the Right Cover: According to the Financial Ombudsman Service, disputes most often arise as a result of failure to obtain the appropriate insurance coverage. With the advice of an insurance broker, you are more likely to be comprehensively covered.  This means that in the event you do have to make a claim, issues are less likely to arise.
  • Dealing with the Claim: After a disaster has impacted your business, your list of things to do is never-ending. Your insurance broker can deal with the claim on your behalf, and communicate with the insurer to ensure it is dealt with as efficiently and effectively as possible. Insurance brokers often have pre-existing relationships with insurers, which means they know how to get the best outcome and resolve any issues that may arise.
  • Reducing Likelihood of Future Claim: Your insurance broker will regularly review your business and your insurance policy to ensure you have the most appropriate cover in place going forward. They will provide a risk assessment of your business to determine any areas where you could minimise risk and reduce your likelihood of a claim.

As your insurance broker, we’re here for you and ready to help whether you have a claim or not.  Don’t hesitate to get in touch for further information or risk management advice.

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.

Drone Law

Drone Law Updates: What it Means for Business

The regulations concerning the commercial use of drones have been relaxed as of the 29th of September 2016.  With these more relaxed rules now in place, it’s important that businesses operating (or considering operating) drones are aware of the risks associated with these devises so that they can plan their risk management strategy accordingly.

The use of remotely piloted aircraft (RPA), or drones, in business has grown considerably in recent years.  In Australia, there are currently an estimated 700 registered commercial drone operators spanning industries including property, tourism, insurance, mining, engineering, marketing, entertainment and sports.  This “booming” drone industry is what prompted the CASA to reconsider regulations for commercial users.

Previous regulations required that operators hold both a Remote Operators Certificate and a Controllers Certificate as well as obtain a number of legal approvals.  In an attempt to reduce the cost and legal requirements around the use of certain types of drones, the updated CASA regulations mean people remotely piloting drones weighing under two kilograms will no longer need a remote pilot licence or a range of other approvals. This has made the use of drones much more accessible for business owners across Australia.  While this an exciting opportunity for businesses, it is important to be aware of the risks associated with drone use.

Drone Use Risk Minimisation

An RPA, or drone, is defined as an aircraft which attracts liability risk under the Damage by Aircraft Act.  The Damage by Aircraft Act was put in place to facilitate the recovery of damages for third parties that have suffered injury, loss, damage or destruction as a result of the aircraft itself or by objects or people on board an aircraft in flight.  When it comes to drone use, this means that if you have an accident and a third party property is damaged or a person is injured, it is likely to result in serious costs for your business.

If you are regularly operating a drone, or considering using one in your business it is important to understand the liability that you are taking on.  While you no longer need certain certifications to legally fly your drone, it makes sense to get these anyway.  Not only will these certifications help you to pilot your drone more effectively and as such minimize the risk to your business, but often you may require certifications in order to obtain a suitable insurance policy.

Obtaining relevant insurance cover is vital in protecting your business.  The most appropriate policy for your business will depend on your own circumstances, however you should ensure that your assets and third party liability are appropriately covered.  Some policies will extend to cover road transit whilst in the care of the insured, and may also include optional ground risks cover, which may be appropriate for your business. Your insurance broker can help you navigate the insurance market and find the most appropriate policy for your business’ drone use.

If you’re using or thinking of using drones in your business, contact us for more information on protecting your business under these new regulations.

This article is not intended to be legal advice and should not be relied on as such. Queries regarding legislation should be forwarded to your legal counsel.

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.

SME Insurance

6 Things All SME Owners Should Know About Insurance

As a business owner, you’ve not only put a lot of time and effort into building the business you love, but you’ve also had to become knowledgeable in a wide range of disciplines; from Accounting, to HR, IT, and Sales. One area that is often overlooked however, is Insurance.

Many small business owners and entrepreneurs find insurance very confusing with so many options, and as such may not have adequate protection for their company. Having the wrong type of insurance or not enough coverage in place can put even the most successful company out of business, fast.

The following are 6 things that you should be aware of when it comes to protecting your business.

1. Certain Types of Insurance Are Compulsory

Some types of insurance are mandatory for Australian businesses. Your insurance obligations will vary depending on your circumstances and the state that you operate in, however you may require insurance in the following situations:

  • If you employ people, you may need Workers Compensation to protect your employees in the event of an accident or sickness
  • If your business owns a motor vehicle, you may need to have certain types of insurance in place such as compulsory third party insurance.
  • When competing for business your customers may require that you have a Public Liability Insurance policy in place

2. Your Insurance Needs Should Not Be Underestimated

Many business owners underestimate the amount of insurance that they need and can be overwhelmed by all the different coverages that are available on the market, and choose the simplest, or cheapest cover. However this can be a costly mistake … A claim where you don’t have adequate insurance in place could mean the demise of your business. Your assets should be insurance for replacement value and your indemnity period for your Loss of Profits cover should be at least 12 months

3. Consider the Specifics of Your Business

While there are core elements of insurance that all businesses should consider, there are also coverage needs specific to different business types and industries. For example, a food and grocery distributor may require a number of cold storage units in order to operate, a manufacturing plant will need immediate machinery replacement cover, while a fitness instructor may have greater liability needs.

4. Professional Advice Is Important

Every business is unique, and so are the risks that they face. Your insurance advisor is an expert in navigating the insurance market and can help guide you through the options available for your business. No one business is the same therefore a tailored solution should be provided that meets your needs.

5. Your Insurance Advisor Can Help You Long Term

To ensure that you have someone that fully understands your business and its needs you need to be able to build a long term and trusting relationship with your insurance advisor.. As your business develops, your adviser will be there to work with you to ensure that you have considered the risks and that appropriate cover is in place. Also, in the unfortunate event of a claim, they will be be your advocate and help you work through the claim to ensure you reach a suitable resolution as quick as possible.

6. Remember to Budget for Insurance Costs

It is a good idea to budget for insurance costs when you’re drawing up a business plan. In the same way that you’d budget for staff, premises, marketing or advertising, insurance costs should also be included in these costs. The cost of your insurance will vary depending on the details of your specific business. Your insurance advistor can help you with costs from a number of insurers.

Taking out Business Insurance is the best way to protect your business and ensure its continued success into the future. Contact your insurance advisor for more information.

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.

Life Insurance

Cover the Biggest Asset Your Business Has: YOU

While many business owners understand the importance of a comprehensive insurance program, most Australian business owners are less likely to understand that a life insurance policy is equally important.

According to a Rice Walker Actuaries estimate, the cover held by those with life insurance through their Superannuation represents only 20% of the cover needed to support their families. In fact, 60% of people with dependant children only have enough life insurance cover for less than one year if they were to pass away.

The people who work for you depend on you for business continuity and so do yours and their families. Often small business owners have much of their assets tied up in their business, and a smooth transition helps ensure that the business continues to be an asset your family can rely on.

The people who work for you depend on you for business continuity, and so does your family. Often small business owners have much of their assets tied up in their business, and a smooth transition helps ensure that the business continues to be an asset your family can rely on.

What does life insurance cover you for?

Small businesses arrange life insurance for a number of reasons. It can be used for issues ranging from ensuring the daily operations of your business if the owner dies, to buying out a director or partner’s share from their family, or to providing income to help find a replacement for a key staff member.

  • Personal life insurance. A personal life insurance policy is usually held separately from policies associated with your business insurances. Personal coverage provides protection in the event of your death to help your family financially.
  • Key person insurance. Business owners may take out individual policies on key staff such as partners, executives or staff who significantly affect your company profits. Policies should be owned by your business and cover the cost of replacing that staff member, as well as any potential lost revenue in their absence.
  • Buy-sell agreements. Life insurance can be used to fund a buy-sell agreement, where the surviving business partners buy out the shares of a deceased partner at a previously agreed-upon price. The life insurance policy covers that agreed cost and is usually outlined in a contract among the owners of your business.

How to choose the right life insurance policy

You can choose from a wide array of life insurance products dependant on your company’s specific needs and size.

Much like business insurance, different policies have different covers and benefits so it is important to seek advice from a professional who can work with you to advise on the right life insurance option for you.

 

PSC Connect works with life insurance specialists who can advise you on what life insurance options will work for you. Contact us if you would like to know more.

 

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.

Small Business Insurance Claims

5 Most Common Small Business Claims: How To Protect Your Business

Australia’s biggest business insurer, CGU has recently released information on the 5 most common small business claims. The report examined their Business Pack claims and identified Theft & Burglary, Storm Damage, Property Damage, Machinery & Equipment Breakdown and Liability as the biggest risks to Australian businesses.

To avoid unnecessary cost and potential disruption to your business you should try to minimise the chances of these losses occurring . By knowing these common business risks, you can take steps to minimise your risk exposure.

1. Theft & Burglary

In order to prevent a theft or burglary on your premises it’s important to make sure your business is as protected as possible. There are several ways that you can do this. First and foremost, you should ensure you have fixed security systems in place as well as lighting in exterior and interior areas in order to deter trespassers. Ensure your business is not an easy target for thieves by securing all doors, windows and other access points when the business is unattended. Anti-theft policies should be put in place and all employees educated on these processes.

2. Storm Damage

Storm damage is a huge cause of insurance claims for Australian businesses. While you can’t control the weather, there are certain things that you can do to protect your business from this risk.

It’s important to understand the geography of your area, specifically considering storm damage risks such as the proximity of surrounding trees, and elevation for storm water run-off. Drainage systems should be maintained and cleared of all material that may have built up over time While the geographical location of your business may not be easily changed, if you are aware of potential dangers you can reduce the chance of a storm having a severe impact on your business. For example, any overhanging tree branches should be trimmed back, other loose objects should be secured, and outdoor equipment should be anchored.

3. Property Damage (Accidental & Malicious)

Property damage, both accidental and malicious, can result in significant costs to your business. The best ways to protect your business from this risk are similar to the above suggestions, in terms of ensuring your business is secure and in good repair. To ensure the continuing operation of your business, it’s important to maintain your premises and proactively repair any small issues before they become bigger ones.  Waste material should be removed from the premises and not left to build up against an exterior wall.

4. Machinery & Equipment breakdown

The majority of businesses these days rely on certain pieces of machinery and equipment in order to operate effectively. When these items do not work properly, it can have a significant impact on the business.

In order to minimise the risk of your machinery or equipment breaking down, you should be proactive in implementing regular checks and ensuring maintenance is up to date. All equipment and machinery should be properly stored, with electrical connections clear of dust and obstructions. Remember that all pieces of equipment should only be used in the way they were intended, and should only be operated by experienced and trained operators.

5. Liability

Liability claims are some of the most unpredictable and distressing claims that a business may face. They arise as a result of a third party sustaining injury or property damage from an activity associated with your business. These situations are difficult to plan for and can be catastrophic in terms of impact. Minimising risk can be difficult, however there are certain steps that you can take to reduce the risk of a liability claim. Ensure walkways and floors are kept dry and clear of tripping hazards at all times with adequate lighting to prevent slips, trips and falls. Furthermore, any dangerous areas of your business should be restricted to the public. This includes places that house machinery or hazardous materials. You should also have systems in place to ensure you and your employees handle clients’ property with care and diligence.

While all business owners should consider the above steps, a comprehensive business insurance policy can ensure your business is adequately protected. Speak to your insurance advisor to ensure that you have the right cover in place.

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.

Tax Audit Insurance

How to Sail Through a Tax Audit

The possibility of being subject to a Tax Audit is increasing every year. If your business finds itself on the receiving end of an audit, you’re likely to face substantial disruption to your operations and incur significant costs. The entire process of a tax audit can be an incredibly intimidating for SMEs, which is why most business owners panic at the mere thought of it.

However, there are however several things that business owners can do in the coming financial year to save time, money and stress in the event that they are audited.

Be Organised

First off, it’s important to be organised. Ensure your business documents are filed appropriately, so that you have easy access to all of your financial records exactly when you need them. It helps to have a system for employees to follow and a specific place for filing receipts and important documents, as well as any passwords for accessing online documents that you may have.

A potential consideration is to use a cloud-based accounting software program. There are several solutions available that allow you to take a picture of an expense and upload it automatically, which not only saves physical storage, but also the hassle of searching through paperwork and receipts that you need for tax purposes.

Hire a Professional

Small business accounting can quickly become complex if you try to do it on your own, so a good accountant or bookkeeper is often a smart investment. An accountant will typically save your business far more than they cost, and they will be able to carry out a range of tax related tasks. Some of the things an accountant or bookkeeper may be able to do for your business include:

  • Keeping you up to date with the latest tax laws
  • Preparing annual statements of accounts
  • Keeping your company’s status updated in the government’s company register
  • Maintaining records of directors and other administrative personnel
  • Dealing with payroll and ensuring that all employees’ tax codes and payments are recorded correctly

Having a record of all of the above will come in handy in the event of a tax audit.

Take Out Tax Audit Insurance

Research conducted by First Class Accounts showed that 48% of business owners had no idea that Tax Audit Insurance existed. However in the event of a Tax Audit, an appropriate policy could save your business thousands of dollars.

In the event that your business finds itself subject to a Tax Audit, costs can accumulate quickly. Having to engage the services of professionals such as accountants, bookkeepers and lawyers can be expensive; Tax Audit Insurance is relatively inexpensive in comparison and will cover the professional fees that arise from an audit.

We can give you more information on Tax Audit Insurance and whether it may be an appropriate option 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.

Insurance Brokers

Insurance Brokers: Your Best Friend at Claims Time

Without an insurance broker on your side, making an insurance claim can be complex, frustrating, and time-consuming. To make matters worse, you have to do it all at the worst possible time, after an unforeseen event has negatively impacted your business. While you’re trying to rebuild your business and recover from the event itself, you don’t want to be filling out forms and waiting on hold while claims staff deal with your request.

However, if you purchase your insurance through a broker, you don’t have to go it alone.

Insurance Brokers don’t simply find your cover and leave you to it; we work with you and your business for the long term, ensuring you always get the most out of your insurance cover. In the unfortunate event that you have to make a claim, we really come into our own. The following are just some of the ways that your broker will help you when it comes to claim time.

We Act on Your Behalf

Using a broker helps to alleviate some of the stress at an undeniably difficult time. We are your first point of call at the time of a disaster and will communicate with the insurer on your behalf throughout the process. We will keep you informed for the duration of the claim and act as an intermediary between you and the insurer so matter is resolved as quickly and easily as possible. We work for you, not the insurer, and as such, will work hard to secure the best possible outcome for your business.

We Know the Claims Process

Completing forms and collating the necessary documents and information required to support your claim can seem overwhelming. Your insurance broker will help you throughout the process, from helping complete claims information to lodging the claim and ensuring you receive the payment you are entitled to. Furthermore, in most cases Insurance Brokers have more experience than the average insurance company claims representative, which can only work to your benefit.

We Know Insurers

We speak the same language as insurers. We also work hard to develop strong relationships with the insurers that we work with, which means we know how to get the best possible outcome from them. We know each policy inside out, and apply our expert knowledge to every claim. If the claim is disputed, we know how to best resolve the issues and have more bargaining power to negotiate with the insurer on your behalf.

We Ensure You are Protected in Future

Once you have been appropriately compensated for the damage you suffered that meant you had to claim in the first place, your insurance broker will ensure you have the correct cover going forward. We will also be happy to carry out a business risk assessment and advise you of ways to minimise your chances of further losses in the future.

Using an Insurance Broker who understands the complexities of your policy and who is familiar with the claims process makes claims time quicker, more efficient and considerably less stressful for business owners facing a difficult time.

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.

Tax Advantages

Tax Advantages Have A Down Side

The Federal Government passed new laws in 2015 to allow small businesses (with an aggregated turnover of less than $2M) to claim an immediate deduction for the cost of each and every depreciating asset that they purchase costing less than $20,000 up until 30 June 2017.

In this year’s budget, announced on the 3rd of May, the Government raised the threshold to $10M, meaning even more businesses will take advantage of this ‘accelerated depreciation’ incentive, which is designed to help small businesses invest more, grow more and employ more.

96% of all Australian businesses are small businesses, and it’s likely that many of them are already taking advantage of these Government initiatives.

Are Your Business Assets Constantly Changing? 

These Tax Advantage measures are designed to incentivise small business owners’ spending, which means that the business assets are likely to grow.

It’s common for business owners to forget to contact their insurance adviser each time they purchase a sizeable asset, which means they are likely to find themselves underinsured.

What is Underinsurance?

According to CGU, brokers estimate between 70-80% of businesses are underinsured, which could result in huge losses for them when trying to rebuild and repair after damage to their business.

Underinsurance occurs when a policy provides inadequate cover to the policyholder. For example, if a business property is valued at $1 million on the insurance policy, then the business expands and the property becomes worth $1.5 million, the business is not covered for the appropriate amount. The policyholder is often unaware of such as discrepancy until the event of a disaster, when they find themselves having to payout the amount that is not covered by the policy.

This often results in a significant financial burden, sometimes so great that the business can’t survive. Policyholders are often underinsured due to improper guidance or planning, but there are steps you can take to avoid underinsuring your assets.

How to Avoid Underinsurance

As a small business owner, your business is your livelihood and should be protected. There are certain steps you can take to ensure you don’t fall into the underinsurance trap:

  • Assess Costs Accurately: Ensure your insurance cover represents the true value of the business including buildings, equipment and assets. Your policy should also allow for the cost of rebuilding and recovery, which is known as the replacement value. Don’t try to lower your premium by insuring only a percentage of the replacement value as this can cause financial trouble if disaster strikes.
  • Keep Up to Date: If you make any improvements in your business, renovations or acquisitions, it’s important to notify your broker or your insurer to ensure that the sum insured is kept up to date.
  • Speak to Your Broker: Accurately valuing your business requires a number of considerations and can be extremely challenging to get right. Your broker specialises in advising businesses of their risk exposure to ensure they are not underinsured.

With new tax advantages, it’s likely that your business will be constantly evolving and growing over the coming years. It’s important that your insurance is reassessed as changes occur, to account for these new developments.

We can help ensure your business is adequately covered and you don’t find yourself in the difficult position of being underinsured when it counts.

 

This article references information from the ATO website, please click here to view the content in its entirety:

https://www.ato.gov.au/General/New-legislation/In-detail/Direct-taxes/Income-tax-for-businesses/Small-Business—expanding-accelerated-depreciation/

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.

Self Managed Super Fund

Changes to Insurance Laws for SMSFs This Financial Year

Did You Purchase Personal Assets Through Your SMSF?

They may not be insured under your standard home and contents policy from the 1st of July 2016.

There are major changes regarding the laws around SMSFs that mean personal use assets must be insured separately by 1/7/2016 including personal use assets acquired prior to 1 July 2011.

The following assets owned by an SMSF are subject to this requirement:

  • Artwork – including paintings, sculptures, drawings and engravings
  • Photographs
  • Jewellery
  • Antiques
  • Artefacts
  • Coins, Medallions or Bank Notes
  • Postage Stamps or First-Day Covers
  • Rare Folios, Manuscripts or Books
  • Memorabilia
  • Wine or Spirits
  • Motor Vehicles and Motorcyles
  • Recreational Boats

The changes to the laws around SMSFs mean that any of the above assets cannot be covered under a home and contents policy, group policy, master policy or business policy.  These items must be insured separately and in the name of the SMSF, prior to the 1st of July 2016.

It’s important to act now to avoid penalties for non-compliance.

We have knowledge in this area and will be happy to advise you on how to best cover your assets.  We have connections with specialist Underwriting Agencies that deal with all of the above categories to ensure we can source the most appropriate cover for you.

Contact us for more information.

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.