Citycover Blog

A fire sparks discussion!

David Kimber – Citycover Insurance Adviser

A recent fire at Inala Shopping Centre has sparked another conversation about Business Interruption Insurance. Over 50 firefighters were needed to bring this large blaze under control in Brisbane’s south-west on August 26th 2017.

The centre housed restaurants, a chemist, and a medical centre, which were all alight when fire crews arrived at the scene at 1.30am. Up to 15 businesses were directly destroyed, or damaged by the fire, and the power was shut down to the complex affecting other businesses in the area.

Many companies had to cease trading, and the entire street was sealed off due to the extreme fire damage, with the roof collapsing, smoke and soot damage.

A devastating event such as this one, reminds us of the importance to consider Business Interruption insurance.

You could be covered if your business suffered fire damage, but you might not have cover if it’s a business nearby that goes up around you, and then impacts your ability to continue to trade.

This could impact you for days, weeks, or months, as it takes time for buildings to be cleaned, rebuilt and restored.

Another example of an event that caused a number of businesses to cease trading, was the contamination of Town Water supply in Roma back in 2012.

An outbreak of Salmonella contaminated Roma’s water system of 14 deep bores, six reservoirs and three underground storage tanks, which were interconnected via the reticulation system.

This affected a number of local businesses, and those which heavily relied on water to operate (i.e. Dentists), were unable to trade at the same capacity for some time. This caused a downturn in many business operations, and the loss of income for those businesses, would have been able to be claimed for under a Business Interruption insurance policy.

Events such as the Inala Shopping Centre fire and Roma’s contaminated water supply can immediately have the following effects on your business:

  • Production is disrupted
  • Income falls drastically
  • Redundancy and other payments may have to be made to employees who lose their jobs
  • Emergency measures, like hire of other premises and plant, must be paid for
  • Delays in rebuilding and replacement of plant can drain capital
  • Lost orders and a subsequent loss of customers may never be recouped
  • Recruiting and training new staff can delay recovery
  • Net profit can become a net loss

Risk Management plans should consider the loss of cash flow, as well as the provision of material damage cover for buildings, plant and stock.

Interruption to trading may last for a few months, a year or even longer. There is also the immediate extra expenses to get your business going again, as quickly as possible, so that you don’t ultimately loose your customers as well.

To discuss Business Interruption insurance in more detail and how this cover will respond in the event of a catastrophe, call your Insurance Adviser on (07) 3270 1500.

Workers Compensation offer!

As a valued client of Citycover Insurance Brokers, we are able to offer you the benefit of monthly instalments for your workers compensation premiums with our business partner, Hunter Premium Funding. Hunter Premium Funding pays the Workers Compensation insurance premium on your behalf and you then repay Hunter in monthly instalments.

For your Workers Compensation requirements in Queensland (i.e. WorkCover Queensland Premium Notice 2017), to receive a 5% discount on your annual premium you must secure premium funding prior to 12th September 2017.

For your Workers Compensation requirements in other states we will require your WC Premium Notice as follows;

  • NSW to receive a 3% discount on your annual premium, your premium must be secured prior to 30 days after the WC Premium Invoice Date.
  • Victoria to receive a 5% discount on your annual premium, your premium needed to be secured prior to 4th of August 2017. Alternatively a 3% discount is available prior to 1st October 2017.

Benefits of Premium Funding include:

    • Free up cash flow: By paying in monthly instalments you can free up your cash flow to use elsewhere in your business.
    • Tax deductibility: The interest payable on your funding may be tax deductible.
    • No additional security: The insurance policy acts as loan security. No need to provide Directors guarantees.
    • Competitive Pricing: Interest rates are fixed for the term of the loan and highly competitive, helping you to avoid market fluctuations and bank fees.
    • If you miss a monthly payment to your Underwriter/Workers Comp: The balance of your annual premium will be payable immediately in full. Premium Funding ensures your premiums are paid on time offering you greater payment flexibility.

To arrange a quote or to learn more about Premium Funding, please email your Workers Compensation Premium Notice 2017 to your Citycover Insurance Adviser at info@citycover.com.au or call them directly on (07) 3270 1500 to discuss/arrange.

Congratulations!

We would like to say a big thank you to all of our clients who referred a new client to Citycover this financial year. It is without doubt the most rewarding moment for one of our Insurance Advisers to be valued enough to be referred onto a colleague, family member or a friend.

Our Referral promotion ended on the 30th June 2017, and was drawn at our offsite conference on the 14th of July. The entrants of our referral competition went into the draw to win a $5,000 Travel Voucher, and we wish to congratulate our valued client Hennie on the win of this prize and we wish him all the best for his upcoming travels.

We have a new Referral program and draw this Financial year, with monthly prizes, as the Citycover team wish to reward those clients who do give this business an opportunity to grow through referrals.

To find out how you can win, call your Citycover Adviser for further details on (07) 3270 1500.

Are you a Business Owner? Tell us what motivates you.

In order to help us understand our small business owners better, we have developed a short 1 minute survey that will help us identify your goals, aspirations and concerns.

Your responses will be completely anonymous and will be combined with those of other business owners to give us an insight into the current climate for SMEs and how we can better meet your needs.

It’s very quick and easy to take part – simply click here.

 

We thank you in advance and appreciate your feedback!

Product Recall: Eaton Industries Pty Ltd

Citycover has recently been made aware of a product recall issued by electrical product manufacturer, Eaton Industries Pty Ltd.

The recall relates to one of the most popular components used in light commercial switchboards across Australia. The recalled product is the Eaton Quicklag ELQ Earth Leakage Circuit Breaker, manufactured between 1 April 2004 and 15 December 2016. Each product has a serial number on the side, from which the date of manufacture can be determined.

There are potentially millions of these in use across Australia from schools through to offices and retail establishments. The recall notice suggests a non-compliant material has been used in the manufacture of a component, and when operating under short circuit conditions, the product may express ionised gases through the exhaust port which may result in conditions creating a fire risk.

What you Need to Do:

Building owners, managers and electrical contractors should check switchboards or load centres for potentially affected RCBO’s. The affected models can be identified by the presence of a green test button. Products without a test button or with a white or an orange test button are not impacted by this recall.

If you identify a recalled product, you can fill in an online form on the Eaton website. Following registration and confirmation of the recalled product, Eaton will arrange for a qualified electrician to attend the client’s site and replace the recalled product with the compliant product at no charge.

Click here to view the product recall notice issued by Eaton. You can find further information on the Eaton website, by contacting Eaton on 1800 870 851 between 9am to 5pm AEST or by visiting the Queensland Workcover website. Alternatively, you can contact your Account Executive at Citycover on (07) 3270 1500.

Tax Probe Insurance

Citycover Insurance Brokers can provide Insurance to protect Business Owners and Individuals seeking cover for Tax Audits. Given the current environment where there is a heightened likelihood of audits, taking up this kind of policy has never been more important.

The Tax Commissioner has predicted that almost 15% of small to medium enterprises, will be subject to the ATO’s compliance program, including some form of tax audit. This has lead to a dramatic increase in ATO field audits on small to medium-sized business, individuals and Self-Managed Superannuation Funds, with almost 80,000 audits conducted every financial year. Each audit can lead to additional work for your accountant and potentially significant costs for your business or for you personally.

Can you afford to pay?

There are many cover benefits associated with Tax Probe Insurance. It is designed to cover you for professional fees associated with tax audits and official investigations of your tax affairs.

What does it cover?

  • Standard cover for tax audits or other official investigations into your liability to pay designated tax carried out by any Commonwealth, State or Territory department, body or agency.
  • Optional cover for the audit of business directors’ own tax returns.
  • Travel and accommodation expenses incurred in the process of the audit or investigation of tax affairs.
  • Stand-alone cover includes the option to cover the audit of self-managed superannuation funds under the Superannuation Industry (Supervision) Act.

Cost of the Policy

The cost of Tax Probe Insurance is low compared to potentially large costs associated with a Tax Audit that you or your business might incur. Insurance Premiums also have the option of being tax deductible as a business expense.

Need cover?

Contact us at Citycover on (07) 3270 1500 to speak with one of our experienced insurance brokers today.

Extent of Cyber Attacks in Australia revealed.

According to the current Insurance Business article, a recent survey was conducted by the Australian Cyber Security Centre (ACSC). They surveyed 113 organisations, 90% of which claimed to have experienced some form of attempted or successful data security compromise during the 2015-16 financial year.

This highlights the need for Cyber Insurance.

Cyber Liability Insurance is designed to provide cover for liability to a business caused by a data breach in which the customers’ personal information, (such as credit card numbers), is exposed or stolen by a hacker or other criminal who has gained access to the business’s electronic network.

“The cyber threat to Australian organisations is undeniable, unrelenting and continues to grow. If an organisation is connected to the internet, it is vulnerable. The incidents in the public eye are just the tip of the iceberg.” (From The Australian Cyber Security Centre Threat Report 2015)

The Survey found that the respondents experienced numerous malicious cyber threats on a daily basis, with spear phishing emails alone affecting organisations up to “hundreds of times a day,” ZDNet reported.

The report aimed to understand how prepared Australian organisations are in the face of the growing cyber threat, the ACSC said, noting that experiencing a cyber incident is not a matter of “if”, but “when” and “what type”.

The survey also found:

  • 86% of respondents faced attempts to compromise the confidentiality, integrity, or availability of their network data or system, with 58% experiencing at least one incident that successfully compromised data and/or systems.
  • Of the compromises experienced, 42% were due to malware, 42% due to phishing, and 19% were caused by distributed denial-of-service (DdoS) attacks.
  • Attempted or successful compromises caused tangible impacts to 60% of the organisations.

“Given that only 2% of organisations reported having completely outsourced IT functions, these figures suggest organisations are not adequately focusing on monitoring networks and detecting potentially malicious activity,” the ACSC report said.

A Cyber Liability Insurance policy provides:

  • Data liability which covers the financial consequences of losing data and can cover the cost of restoring, recollecting or recreating data after a leak or breach.
  • Privacy and crisis management cover which provides cover for costs related to the management of an incident, to repair reputations, the investigation and the remediation. It also includes legal costs, court attendance and fines that might be incurred.
  • Business Interruption which covers the loss of profit due to an interruption to the business following a cyber breach.
  • Extortion liability which provides cover for losses caused by extortion (or threat of) including ransom payments and the professional fees incurred in dealing with the extortion.
  • Cyber insurance also provides: Third-party damages caused by denial of access, costs related to data on third-party suppliers and costs related to the theft of data on third-party systems. It can also include specific defacement of website and intellectual property rights infringement.

If you would like to discuss Cyber Insurance today, contact your Insurance Broker at Citycover who can help you through the risks you currently face and the level of cover required. Phone: 07 3270 1500, Email. info@citycover.com.au

UBER and Insurance

Can Citycover arrange insurance for Ridesharing / UBER?

Yes we can!   We’ve done all the hard work for you and found comprehensive policies to cover drivers who work for UBER or other Ridesharing services. It’s important to seek advice from your Insurance Broker on the right cover, so in the event of a claim you are adequately insured. You will be required to provide a certificate of insurance, which we can organise and send straight to your email inbox.

Why should I use a broker for Car Insurance instead of going Direct?

Car Insurance is very competitive, and policies are often chosen on price alone. However there’s many differences between Private and Commercial Car Insurance Policies, and you may have legal requirements when driving a vehicle used for UBER / Ridesharing purposes.

When an accident occurs, this is usually an extremely stressful time, and often you can be left without a car, plus you will also need to organise repairs, and speak with Insurers. Citycover can handle all of this for you, and we know what you are entitled to in the event of a claim. Unfortunately the cheapest premium won’t get you the service you need during such an extremely stressful event.

So I drive for UBER. How does my Insurance work?

When the UBER app is on, and you have accepted a trip, your liability insurance becomes active until the passenger(s) exit the vehicle. When the UBER app is off, you are covered by your own private car insurance.

How do I know if I am covered for UBER?

As is with any insurance, you have a duty of disclosure to let your Broker/Insurer know that you are involved in Ridesharing activities. If you fail to disclose, they may have grounds to deny a claim.

Does my private car insurance automatically cover me for UBER driving?

The short answer is no. Private car insurance policies generally contain exclusions for carrying passengers for reward or hire. Under your Duty of Disclosure where you must let your Broker / Insurer know if you are involved in Ridesharing activities (see previous question). This will likely change the premium of your policy.

Is the price more expensive for UBER drivers?

As there is higher risk using your vehicle for Business or Commercial purposes, in comparison with using it privately, the premium of your insurance is likely to be more expensive.

The cost of your insurance is influenced by a number of factors, including the type of vehicle you are using, the location it is stored and how often you are using it for UBER / Ridesharing activities, plus your claims history etc.  It’s important you disclose this information accurately.

What does Public Liability Insurance cover me for with UBER?

Public Liability Insurance is one of the most important covers you can have. It covers you in the event you cause personal injury to a third party and their property in the event of a car accident. Cover available includes legal costs and expenses, third party property in your care custody and control, protection from the financial consequences of causing property damage or personal injury to another person, and protection that stops the need for you to pay money out of your own pocket or risk bankruptcy. We suggest taking out a minimum $5m Liability cover now that UBER is regulated.

There’s different UBER Services, are they all covered?

Most rideshare policies only cover UBER X. There’s other services including UBER Eats, UBER XL, UBER Select, UBER Pool and UBER Black. It’s important you let us know so we can find the right cover for you.

I have a claim, what do I do?

Firstly, if it’s an emergency, dial 000.

Citycover’s claims team are available on (07) 3270 1500, and our emergency after hours contact number is 0419 710 868. You don’t have to worry as we lodge, liaise with third parties and manage your entire claim from start to finish.

Call us on (07) 3270 1500 to arrange cover today.

What is Professional Indemnity Insurance?

Professional Indemnity Cover is designed for professionals who provide advice or services to their customers. It protects your business against legal costs and claims by third parties for damages arising from acts, errors or omissions, or breaches of professional duty in the course of your business.

Examples:

  • Architect sued by his client for the costs of rectifying an extension built from a flawed design.
  • Logistics company sued by a competitor for copyright infringement and intellectual property theft relating to their business model and their website.
  • Web designer’s client sued by image owners for using unlicensed pictures on his website. Client sued the web designer.
  • IT consultancy’s web hosting partner company hacked – consultancy’s clients’ websites offline for a day. Consultancy sued for loss of business by a client.
  • Marketing agency omitted a digit from a client’s phone number and left out their web address in a printed advert. Commercial decision made to reprint advert at agency’s cost.

Who Need Professional Indemnity Insurance?
***Just to list a few***

  • Business and Management Consultants
  • Marketing Consultants
  • Lawyers
  • Medical Professionals
  • Real Estate Agent
  • Accountants
  • Bookkeepers
  • IT professionals
  • Architects
  • Engineers
  • Designers
  • Fitness Professionals

Some of the things you are covered for:

  • Cover for civil liabilities including (but not limited to) breach of duty, defamation, loss of or damage to documents, infringement of intellectual property and more
  • Automatic reinstatement of the Policy Limit
  • Claims investigation costs (i.e. costs of investigating, defending and settling claims)
  • Automatic reinstatement of the Policy Limit
  • Continuous cover extension

Some things that are not covered:

  • Insolvency of the insured
  • Claims and circumstances known before the period of insurance
  • Intentional damage
  • Contractual liability
  • Terrorism

How to get cover?
There is a range of PI products on the market and not all PI polies are the same. To ensure you are covered correctly or to see if you require insurance, contact us at Citycover at (07) 3270 1500 to speak with one of our experienced insurance brokers.

Cyclone Debbie Information

Important Communication:

Citycover Insurance Brokers have taken pre-emptive action to ensure we are in the best possible position to assist those who are affected by Cyclone Debbie today.

Our office will be closed due to the advice from QLD Authorities in respect to the weather in Brisbane.

However our entire team are all on call working from home and are available to assist you with any of your urgent insurance needs.

Our emergency claims contact number is: 0419 710 868.

Your Account Executive’s Details will be below.

Please refer to your insurance policy for further information including your Policy Number.

Daneille Crawford – 0432 075 833
David Kimber – 0488 444 494
Eloise McCarthy – 0411 049 724
Jonathan Hobson – 0438 488 486
Kale Townsend – 0488 447 774
Liz Walker – 0412 216 080
Lydia Flemming – 0477 400 774
Mal Llora – 0402 887 166
Mark Sandow – 0412 220 913
Nilima Pokala – 0438 760 437
Paul McGregor – 0431 240 516
Stewart Harker – 0412 216 038

The storm is in full force as we speak. Our number one priority is the safety and well-being of our clients.

Please stay safe and know that Citycover are committed to assisting those that need help today.