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.

Parts of Australia Risk Becoming Uninsurable

Climate change is undeniably a politically sensitive issue. However, the Insurance Council of Australia (ICA) has warned that it poses a very real, persistent threat that, as evidenced by science, will significantly impact our modern way of life in years to come.

Individuals are becoming increasingly concerned about the impending effect climate change will have around the globe, sparking an abundance of detailed studies on the issue.

 

The Impact of Climate Change in Australia

At the core of the climate crisis is the stipulation that greater carbon emissions are causing temperatures to sore worldwide, which has been supported by robust data. The Australian climate has warmed by more than 1°C since 1910 and, while at first glance this may not appear to be particularly significant, scientific findings definitely bring such change into perspective.

“Scientific records over the past million years show that as periodic ice ages ended, global average temperatures rose a total of 4-7 degrees Celsius over the course of about 5,000 years.”

 The ripple effect of such abnormal temperature fluctuations is being felt across the country with ecosystems such as the Great Barrier Reef already falling victim to the harrowing consequences. The reef is valued at over $57 billion, providing employment for over 64,000 people, but since 2016 about 30% of its coral has died. This catastrophe was caused by mass bleaching, an event that climate change made 175 times more likely.

Escalating average temperatures have also contributed to the growing threat of bushfires in Australia, with fire seasons becoming longer and increasingly dangerous due to harsh conditions.

 

The Implications of Climate Change on Insurance

It’s expected that by 2050 the total costs of natural disasters in Australia will almost double, reaching $39 billion. With this in mind, it comes as no surprise that certain high-risk areas are facing the very real possibility of being deemed uninsurable in the near future.

There are already about 350,000 properties across Australia that are considered uninsurable, and by 2100 it has been projected that this figure will grow to 720,000.

The Federal Government is being urged to increase their spending on disaster mitigation with Richard Ethoven, ICA President, suggesting they start contributing $200 million per year to the cause. However, the responsibility to introduce permanent, effective mitigation and resilience measures doesn’t rest purely on the Government.

If properties become uninsurable, insurance providers will be faced with the consequences of a declining market. For this reason, many believe that insurers ought to be doing what they can to lower carbon emissions, all the while developing maintainable policies that will be applicable in the foreseeable future.

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

The Combustible Cladding Crisis Continues to Impact Homeowners Across Australia

In 2014, the Lacrosse building fire in Victoria sparked serious concerns for the safety of buildings across the state. The true extent of this crisis has since come to light, with the consequences of costly, dangerous defects being endured by property owners throughout Australia.

 

The Impact on Property Owners

At least 3400 residential unit blocks, which comprise of about 170,000 apartments, are at risk of having been constructed using flammable cladding. As the number of impacted property owners across Australia continues to rise, the immanent need for a systematic, enforceable solution is becoming increasingly difficult to ignore.

In a bid to protect affected buildings from arson, the Victorian Government are keeping the growing list of about 1100 properties containing flammable cladding private. In many cases, buildings that were initially deemed compliant when reviewed against Australian standards have, upon appraisal, now been found to contain combustible cladding.

Often, homeowners receive little information regarding their property’s new ruling and, with an unclear course of action for the issue’s resolution, they experience immense emotional and financial strain. However, if impacted landholders decide to put their property on the market, such defects must be disclosed and, as such, it will likely be sold at a loss.

 

What’s Being Done to Rectify the Issue?

During August, a bill aimed at banning the importation of flammable cladding was reintroduced into the Australian parliament. However, such suggestion has received mixed responses, and while some individuals believe that allowing combustible cladding into the country is paramount, others reject the ban. This is because, when used in the appropriate circumstances, aluminium composite panel can be a safe and legitimate building material. For this reason, an import ban could negatively impact those using this resource for signage, wrapping ATMs and road barriers.

The Victorian Government have committed to paying $600 million toward the rectification of major defects, dedicating resources to the restoration of more than 500 buildings that have been classified as high-risk. However, such funding packages aren’t unanimous across the country. The New South Wales and Queensland Governments have expressed that they won’t be following in Victoria’s footsteps. They have concluded that the builders and insurers of impacted properties ought to be held financially accountable, rather than taxpayers.

In July, insurers ceased to offer exemption-free cover, worsening the professional indemnity crisis that materialised after the widespread discovery of combustible cladding in buildings. Until Governments across Australia reach a mutual agreement and enforce viable solutions aimed at rectifying impacted buildings, it’s unlikely that insurance providers will reinstate exemption-free cover. Thus, for the foreseeable future, the circumstances surrounding professional indemnity insurance are expected to remain relatively stagnate.

If you have any queries relating to your building’s cladding or your other insurances, please get 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.

Employee or Contractor? What’s Riskier for Your Business?

If you are planning on expanding your workforce, deciding whether to hire a new employee or contractor can be difficult. There are, of course, various benefits and risks associated with each of these options that could significantly influence your final decision. Before going ahead with your preferred choice, it is crucial that you consider these and fully assess the types of recruitment available to your business and the risks that each of them brings. By doing this, you will be able to discover the ideal solution for your distinct needs.

 

Hiring a Contractor

Contractors are becoming an increasingly prominent group in the job market, with almost one-third of Australians preferring the flexibility of freelance work. By temporarily recruiting a contractor, your business will likely be able to save on employment costs. While an employee may have a lower hourly rate than a contractor, you are also required to cover their holiday pay, insurance, sick leave, equipment and the like. This means that, in the long-term, the total costs for hiring a contractor will often be less than those of an employee.

Contractors provide businesses with a more flexible employment solution, being that they can be hired on an as-needed basis. Because contractors are specialised in the service they are offering they also, typically, require less management when completing assigned tasks.

It is, however, important to consider the difficulties that hiring a contractor can pose. When working as a contractor, it is not uncommon for individuals to be employed by multiple companies simultaneously. Because of this, they may fail to prioritise business objectives and appear less committed or loyal than an employee. It is also vital to note that, while they are required to follow set guidelines, contractors can often decide how best to complete the task for which they have been hired. For instance, if they prefer to work outside of normal work hours, this could negatively impact your communication capabilities.

Each business has different needs, priorities and objectives. As such, hiring a contractor will not always be the perfect solution and, in many cases, companies are better suited to alternative employment options.

 

Hiring an Employee

By hiring employees, you can support the development of a strong, loyal and dedicated team of individuals who have a shared vision for your business. Employees are often more invested in the long-term success of the company at which they work than an external source would be. With a comprehensive understanding of organisational processes, they also play a significant role in ensuring all company procedures continue to run smoothly.

By hiring an employee, as opposed to a contractor, businesses are able to keep everything in-house. This means that, during the day-to-day operations of your company, you can efficiently manage workloads and lead staff all while keeping private information secure.

While hiring an employee can offer many benefits to your business, there are still numerous challenges with this type of employment. Significant time and money must be invested in employees to ensure they are well equipped to perform their role, while also having access to required equipment and resources. You also risk hiring someone who is not a good fit for your business, which can often be difficult, costly and time-consuming to manage.

Regardless of whether you choose to hire an employee or contractor, there will be various insurance considerations that will need to be taken into account.

For reliable insights into how each alternative will impact your insurance and risk management solutions, speak 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.

Does Your Property Insurance Cover You for Airbnb?

Airbnb has over 650,000 hosts worldwide and, if you are one of them, ensuring you have the right insurance for your property is crucial.

A global company, Airbnb helps members arrange temporary accommodation solutions in over 191 countries. This online marketplace makes board and lodging, homestays and travel experiences readily available to users, all while assisting hosts in gaining additional value from their property.

The substantial growth of the sharing economy in recent years has led to the emergence of an incredibly diverse, widespread sector that can offer immense benefit to both guests and property owners. It is important that, in response to this advancement, cover providers continue to adapt and refine their products to meet modern demands.

In a recent survey, it was found that 54% of accommodation hosts who have at least one Australian property listed on Airbnb were unsure about whether they had adequate cover. By determining the extent to which your property is protected against unexpected events, you can proceed with home-sharing activities in confidence.

Once a property has been listed on Airbnb, the owner is offered Host Protection Insurance at no additional cost. It is, however, essential to note that this cover is not as comprehensive as a Home and Contents or Landlords Insurance policy. The cover provided by Host Protection Insurance is not all-inclusive and, because of this, may still fail to account for particular incidents.

With Host Protection Insurance, you can gain up to $1 million in liability coverage for each occurrence involving property damage claims or third party bodily injury. However, in most cases, you will not be covered against malicious damage, theft, damage resulting from natural disasters, auto accidents such as vehicle collisions and any consequential legal expenses.

Those who explore alternative cover options need to ensure that their Home or Landlord Insurer is made aware of their properties use as an Airbnb. If such information has not been disclosed then, regardless of whether an incident involves Airbnb guests or not, the insurer holds the right to decline any claims lodged by the host.

It is not uncommon for insurers to offer policies that do not cover properties that have been listed on Airbnb. As such, when searching for your perfect insurance solution, you may find seeking professional advice and assistance particularly advantageous.

For more information, get 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.