Monthly Archives: September 2013

Top 4 business insurance mistakes

Running a business often means dedicating all your time and effort to it, so you don’t want one incident or mistake to bring down the business you have worked so hard to build! Choosing the wrong insurance for your business is one mistake you cannot afford to make.

Business insurance can help protect you and your business when it needs it most so placing the right insurance is a must. Obtaining the right insurance means avoiding common mistakes that many business owners make in choosing the best insurance policy for their businesses. Below are 4 common mistakes, you can avoid:

    • Not considering business insurance important

The biggest mistake business owners commit is not considering business insurance important. Some small business owners believe as they are small they can trade without business insurance. But it is important to understand that a business, whether small or big, should obtain insurance. Not having business insurance is inviting trouble, when the decision to seek protection & place insurance can cover your business against potential losses. Even if you are a start up and funds are scarce do not compromise with inadequate coverage. Ideally, create a budget for insurance at the business planning stage and take the best cover for your needs well in time. Pay by the month funding makes insurance viable.

    • Lapse in obtaining timely insurance

Letting your insurance lapse is like not having insurance at all. If you don’t renew your insurance policy, you will end up paying for any damages from a lawsuit or a calamity by yourself.

    • Obtaining the wrong insurance

Many business owners consider buying business insurance through retail insurance companies they are dealing for the car or home insurance. They find this as an easy option, without realising that insurers that specialise in car insurance or a property insurance company may not necessarily recommend the best business insurance policies for you.  These “direct insurers”, can only offer you their own policy so are biased. They cannot access the entire business insurance market. Therefore, it is usually not the best idea to buy your business insurance policy from a direct insurer. Rather talk to a business insurance specialist at an insurance broker who can act for you.

    • Failing to update your insurance policy to reflect new information

Another mistake to avoid as a business owner is not informing your insurance broker about a change in business activities or assets. This means, should there be an issue etc. you may end up struggling to get a claim paid in part or in full.

General advice Disclaimer

This Blog contains general advice only. It has been prepared without taking into account your particular objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Smart Business Insurance (this Company) and the Blog authors makes no representations or warranties with respect to this Blog or its contents.

This Company does not warrant that the information on this Blog is accurate, complete or current.

Please click here to for the complete disclaimer details.

What does Business Insurance have to do with the AFL Finals Series?

To the untrained eye the relationship between Business Insurance and the AFL footy appears tenuous at best.

For example, if your team makes the AFL Finals and finishes in positions 5,6,7 or 8, you would love them to have the sameInsurance policy that the top 4 get – the coveted double chance.

Early in the third quarter of their Elimination Final, Richmond, with a 32 point lead over Carlton, would have liked to take out Business Interruption Insurance to protect their profits – their lead!

AFL CGU But with no Insurance policy available to them, the teams that performed better throughout the home and away season to finish 5th& 6th, in Richmond and Collingwood, were bundled out by teams that finished 7th in Port Adelaide and 9th* in Carlton. (*that’s another story)

On the other hand the teams that finished 2nd and 4th in Geelong and Sydney, despite losingare both alive for another week of finals as they claimed on the bestinsurance policy in the business of AFL Football – the Double Chance.
Qbe-afl

Sydney in particular are no strangers to the Business of Insurance as their major sponsor of 27 years is QBE – one of Australia’s leading Business Insurance Companies.

Similarly, Geelong survived despite losing their final. Is it that, because as the Cats they have 9 lives?, Or because one of their major sponsors NIB provides Health & Life Insurance? A happy coincidence perhaps?

However, having a leading Insurance company as your major sponsor is no guarantee of surviving week one of finals as Collingwood found out, despite being sponsored by top insurer CGU.

vero-afL

Nor was Richmond saved by its sponsor, online car Insurer BINGLE, from a major crash in the second half of their Elimination Final.

Further, not only does having a leading Insurance Company not protect you against damage in an Elimination Final, it doesn’t guarantee you of even making the finals.

The Brisbane Lions have a partnership with one of the best Business Insurance Companies going around in Vero. And while performance matters with Vero it couldn’t get the Brisbane Lions into the top 8 or even 9!

In fact the insurance relationship couldn’t save the Brisbane Lions coach; who hopefully took out Income protection at the start of the year.

Likewise the West Coast Eagles sponsorship by Direct Insurer SGIO could not help the fancied Eagles make the finals or save club, coach and Legend John Worsfold his job.

So as you can see when it comes to the Business of Football, the Insurance Business plays a much larger role in AFL Footy that is immediately apparent.

This blog is written by Mark Vanzo, a Carlton supporter & Managing Director of Melbourne headquartered

National Business Insurance Broker – SMART Business Insurance.

Disclaimer: The author makes no claims in relation to the likely performance of one AFL Insurer sponsored club over another.

General advice Disclaimer

This Blog contains general advice only. It has been prepared without taking into account your particular objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Smart Business Insurance (this Company) and the Blog authors makes no representations or warranties with respect to this Blog or its contents.

This Company does not warrant that the information on this Blog is accurate, complete or current.

Please click here to for the complete disclaimer details.

Top 8 tips on how you can ensure safety for workers

Workplace safety doesn’t really have to be complicated – listed below are a few tips to make workplaces safer and healthier for workers.

The rights to work in healthy and safe environment have been given to the employee by law and cannot be changed or removed by the employer. Small businesses, which must take out workers compensation insurance, can introduce simple safety measures to reduce the chances of injury and ill-health.

  • Safety gear
  • Workers safety should be every business’ motto. All employers should aim for their employees to be safe and to carry out their tasks with utmost safety. Therefore, it is important that employees follow safety rules and guidelines. Employees should at all times (when working) wear the protective equipment to suit the task. It can be to the employer’s benefit to provide workers with appropriate safety gear. Employees should be aware of the particular hazards of their job, be cautious and take steps to reduce the risk of injury at work.

  • Workers’ Compensation Insurance
  • Employers must take up workers’ compensation insurance. Workers’ compensation is insurance cover providing medical benefits and wage replacement to employees who get injured at work. The insurance is taken to compensate the employee for injuries sustained.

  • Fire extinguishers
  • Businesses face huge potential losses due to fire. It is therefore important for employers to ensure that functioning extinguishers are in place and clearly marked.

  • Electrical safety
  • Electrical short circuits are a primary cause of fire in business premises so employers should ensure that sockets, plugs and switches are in a good condition, floors are clear of unnecessary wires etc and that safety switches are hardwired into electrical switchboards for safety.

  • First Aid
  • Companies should ensure that sufficient employees are versed with the basics of first aid, so that they can help each other in case of injury or illness. A first aid box should be kept in the work area and workers should know how and what to use when needed.

  • Strict rules
  • Employers should have strict working rules; workers should not be allowed inside the work area when they are under the influence of alcohol or drugs. Drugs and alcohol contribute to almost 3 percent of workplace fatalities.

  • Reduce work stress
  • Work stress and work pressure are two separate things, while the latter is often necessary in a business for workers (to perform better). Work stress because of peer conflicts, workers and employee conflicts etc can cause illness. Friendly & consultative work practices can minimise work stress.

  • Sick leave
  • Finally, legitimately sick workers should take sick leave. Sick workers playing the martyr can have negative effects by prolonging their own recovery and exposing more workers to illness.

 

General advice Disclaimer

This Blog contains general advice only. It has been prepared without taking into account your particular objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Smart Business Insurance (this Company) and the Blog authors makes no representations or warranties with respect to this Blog or its contents.

This Company does not warrant that the information on this Blog is accurate, complete or current.

Please click here to for the complete disclaimer details.