News


Central Diesel – Business Interruption Case Study

This claim story is a testament to the work the insurance industry does — putting people’s livelihoods back on track. It showcases the way Insurance Advisernet and Zurich Insurance worked together for the best possible outcome for Central Diesel – a client of Tony Atkinson in South Australia. Also, it desmontrates just how vital the right advice and cover can be. Business interruption insurance is often the difference between survival and failure of a business.

http://www.youtube.com/watch?v=0Ac5XXUO2DU&feature=c4-overview-vl&list=PL790C7F77281F5BC1 Read more


Don’t turn a contract into a handcuff – The Boardroom Report

Our national campaign was picked up by the Australian Institute of Company Directors Magazine – The Boardroom Report which reaches 35,000 company directors. See full transcript below.

While signing contracts is part of doing business, not everyone understands the full implications of what they are signing, says Adrian Kitchin MAICD, managing director of insurance brokers Insurance Advisernet Australia.

He warns that owners of small and medium-sized enterprises (SMEs) could expose themselves to potential financial difficulty by entering into contracts without understanding the full implications or checking with their professional advisers.

“The business owner is typically focusing solely on the perceived benefit and not necessarily appreciating the liabilities and other consequences of what is being signed,” he says.

“More than ever, large organisations are transferring as much risk as possible from their organisation to the other party to the contract.”

Kitchin adds: “Even an experienced director who is well versed in commercial dealings, including contract negotiation, can sometimes make mistakes that are not immediately apparent.

“Best practice would be for a director to seek advice from his or her solicitor, accountant and insurance adviser prior to signing any commercial contract that binds the company. Quite often, seemingly innocuous terms can have far reaching effects that a director may not readily be able to establish from the wording of a contract.” Read more


Top Five ways to know if you’re getting the right insurance for your business.

In this short article, Adrian Kitchin, Managing Director of Insurance Advisernet Australia and New Zealand explains how you can be sure you’re getting the best insurance for your business. An important path to peace of mind for the business owner, allowing them to get on with business without having to worry if they are covered for any eventuality.  Read more


Top Five Reasons for protecting the key people in your business – including you

In this short article, Adrian Kitchin, Managing Director of Insurance Advisernet Australia and New Zealand explains why you should protect the key people in your business, including you. An important path to peace of mind for the business owner, allowing them to get on with business without having to worry if they are covered for any eventuality.  Read more


7 common mistakes business make with their insurance

1. They don’t Buy Insurance
This is relatively the biggest mistake business owners make on insurance. Insurance can seem like the benefit doesn’t justify the cost or maybe they don’t realize they need coverage. Business owners can sometimes feel that as long as they follow the rules, operate legally, and do what they are supposed to do, they will be ok. What many don’t realize is that even if they are sued and win, the cost of defending themselves against even an unfounded lawsuit may be enough to put them out of business.

2. Buying the Wrong Insurance
Business owners who don’t work with an insurance adviser to assess their risk and secure the right coverage to protect their business from losses, run the risk of having to cover costs that are not covered by the wording of the policy they purchase.

3. Buying Inadequate Coverage
Business Owners that do purchase insurance often don’t buy enough to cover their potential losses. Business owners don’t realize this mistake until it’s too late and they are stuck paying for solicitor fees and legal settlements out of pocket. Purchasing inadequate coverage is only slightly better than not having any coverage at all.

4. Going Without Business Interruption Insurance
You can cover your office or factory, which is nice if it burns down, you can get a new one built. But what about the sales or income you make during this time. This is often not covered and is called business interruption insurance. It provides financial support when something interrupts your ability to conduct business. Going without this coverage can endanger the business as much as going without liability or property coverage.

For example, there is a fire in a retail shop that destroys or damages all the merchandise forcing the shop to close for three weeks. The business owner’s property insurance covers the lost merchandise, but without business income coverage, the business owner has no way to recover the lost income from having the shop closed for that period of time.

5. Misunderstanding Coverage
Business owners who buy the right amount of the right coverage can still run into problems if they don’t understand what things are specifically excluded from their policy. Most business insurance policies are full of exclusions and business owners who don’t understand these exclusions can be left holding the bag when they thought they were covered.

This is why a professional adviser is more than worth their fees, because for a small extra cost compared to total cost of the policy, the adviser can make sure these gaps or exclusions are either explained to you so you can make an informed decision, or covered in comparing two different suppliers. Some advisers who specialise in certain areas can even negotiate a specific wording in an exclusive policy for your occupation, so check if this is available to you as well.

6. Low Deductible
As a business owner you can decrease your costs while still protecting your business by increasing the deductible on your policy. Carrying a low deductible on your policy may seem like the better business decision because it offers more protection, but it may not be the right decision for your business. High deductibles reduce your overall operating costs yet still protect you from the kinds of losses that could compromise your business.

The best way for business owners to ensure they have the coverage and protection they need is to work with a professional insurance adviser. The adviser can assess your needs and then help you find the best insurance package to meet your needs at the right budget.

7. Thinking going direct is cheaper
There is no doubt in the Australian market, that there are cheap direct insurance policies available and lots of ads are on the radio and on TV that are attractive to the business owner. But going direct is not necessarily cheaper for the business owner in this market. A large adviser network can negotiate very good insurance pricing for their SME customers – and often with policies that are specific to an occupation or industry. Often, the direct insurer products are general, and have exclusions to allow for ‘cheaper’ pricing.

So don’t make the mistake of thinking going direct is cheaper. Because in the long run if the cheap policy doesn’t cover your needs it may well be the most expensive mistake you make when a claim is not covered. Read more


What is Business expenses Insurance?

If you are self-employed or in a small partnership, an extended absence from your business as a result of sickness or injury could have a severe financial impact on you and your family.

Not only would business revenue reduce or even stop but fixed expenses of the business may continue. Business expenses insurance can reimburse you for up to 100% of the fixed business expenses.

If business revenue reduces but expenses continue would you allow the business debt to grow and compromise the future viability of the business? Or fund the payment of the business expenses from other income or possibly look to sell personal assets? None of these alternatives is particularly appealing.

Business expenses insurance can reimburse you for up to 100% of the fixed business expenses that continue to be incurred while you are unable to work because of a sickness or injury – both your business and your personal finances are protected. Benefit payment is usually excluded if you suffer a sickness or injury as a result of:

• war or an act of war
• a self-inflicted act
• uncomplicated pregnancy

However, policies can differ and you need to have your financial adviser check the specific conditions that apply to any contract you are considering. It is also important to remember that benefit payments usually do not start immediately; an excess or waiting period can apply during which no benefit is payable. The waiting period is usually 14 or 30 days. Work with your adviser and choose one that suits your needs and your budget. Read more


Debt protection and insurance for self-managed super funds

With a number of changes being made to the investment rules for self-managed super funds, allowing investments in a wider range of assets including property assets, many self-managed super funds have a large percentage of assets tied up in a single investment – leading to lack of liquidity. Appropriate insurance cover becomes especially important when SMSFs look at property investment and have debt.

Often investors overlook the need for insurance when they establish a SMSF and they may not be aware that any existing insurance they have with an industry fund or retail offering may be lost.

The unexpected payout of a member’s benefits (due to a member’s death or total and permanent disability) could leave the SMSF facing a liquidity crisis. Without appropriate insurance in place, assets such as property within the SMSF may need to be sold to pay out member benefits.

This could have a number of devastating effects including:  Read more


Do you sign Business Contracts?

By Phil Siganto

Many small and medium business owners and managers can expose themselves to potential financial difficulty by entering into contracts. The business owner is typically focusing solely on the perceived benefit and not necessarily appreciating the liabilities and other consequences of what is being signed. At Insurance Advisernet we understand the risks associated with signing contracts and we are pleased to provide you with a free copy of “Mannings Guide to Contract Reviews”. This free guide explains the major issues that should be considered when signing any contract, large or small. Read more


Protecting your bread and butter

By Phil Siganto

If you own your own business, chances are it’s your livelihood. But what if something happened to you or your partner and you were unable to continue operating it? Read more