Lewis Insurance Services

30/04/2024

Emerging Risks of Lithium Battery Fires

https://www.lewisinsurance.com.au/ia-risk-alert-emerging-risks-of-lithium-battery-fires/

11/04/2024

Thinking of selling your business or looking to head into retirement? Do you know what Run Off cover is or ever wondered if this is something you need to look into? If so, this article is for you.. 📖

When the time comes to bid farewell to your business due to a sale or retirement, it's not just the memories you'll want to preserve. Many financial liabilities can continue after you leave the business, so talking to your accountant and insurance adviser is important. Run-off cover is key to provid...

08/04/2024

In the ever-evolving landscape of the business world, companies constantly face myriad challenges that can disrupt their operations. From natural disasters and pandemics to cyber-attacks and supply chain issues, these disruptions can significantly impact a business’s ability to function efficiently. Amidst such uncertainties, understanding the concepts of business interruption and Additional Increase in Cost of Working (AICOW) becomes crucial for organisations to mitigate risks and navigate through unforeseen challenges.

Understanding Business Interruption

Business interruption insurance is critical to a comprehensive business risk management strategy. It is designed to protect businesses from losses stemming from unavoidable interruptions to their operations. Such interruptions can result from various causes, including fire, flood, theft, or even a global pandemic, leading to a halt or slowdown in business activities.

Business interruption insurance primarily aims to cover the loss of income that a business suffers after a disaster. The income loss covered may be due to the business’s temporary closure or the rebuilding process after a disaster. This type of insurance can also cover operating expenses, like electricity, that continue even though business activities have temporarily stopped.

Delving into AICOW

Additional Increase in Cost of Working (AICOW) is a supplementary coverage within the ambit of business interruption insurance. It specifically addresses the additional expenses a business incurs to minimise the loss of gross profit following an insured event. These are over and above the normal operational costs and are incurred specifically to expedite the return to business as usual.

AICOW can include expenses such as renting temporary premises, leasing emergency equipment, or even increasing the workforce to catch up on backlogs. This coverage is pivotal because it enables businesses to implement swift and effective measures to mitigate losses without waiting for the complete restoration of the damaged property or infrastructure.

The Synergy of Business Interruption and AICOW

Integrating business interruption insurance with AICOW coverage provides a robust safety net for businesses. While the former ensures that a company can weather the storm of lost income during unforeseen closures, the latter empowers businesses to take proactive steps in minimising the duration and impact of such interruptions.

For businesses, the key to effectively leveraging these coverages lies in thoroughly understanding their policy details and proactively planning for potential disruptions. This entails conducting regular risk assessments, developing contingency plans, and maintaining clear communication with insurance providers to understand the scope and limitations of their coverage.

Navigating Through Challenges

In today’s dynamic business environment, the question is not if disruptions will occur but rather when. In this context, business interruption insurance and AICOW play critical roles in ensuring business resilience. By providing financial support and covering additional costs incurred during recovery efforts, these mechanisms enable businesses to navigate the aftermath of disruptions confidently.

However, it’s important for businesses to regularly review their insurance coverages to ensure they are in line with their evolving risk profiles and operational changes. This proactive approach ensures that when the unexpected happens, companies are prepared to survive and thrive, turning challenges into opportunities for growth and development.

While the path of business is fraught with uncertainties, the strategic integration of business interruption insurance and AICOW coverage equips companies with the tools to face disruptions head-on. By understanding and leveraging these financial safeguards, businesses can ensure continuity, safeguard their interests, and pave the way for a resilient and prosperous future.

05/04/2024

Is Your Insurance Cover Keeping Up with Your Business?

https://www.lewisinsurance.com.au/is-your-insurance-cover-keeping-up-with-your-business/

27/03/2024

As a Business owner, there are many risks and exposures you need to be aware of and manage to ensure the continual success and survival of your business.

Have you ever wondered what would happen to your business should you suffer an unexpected loss? Do you have a strong business continuity plan in place to help manage unforeseen circumstances? ✅

When planning ahead, remember it's not just total losses that can have a negative financial impact on your business, it's partial and indirect losses as well.

Click on the link below to read more ⬇ or contact one of our friendly advisers for more information 📞

https://www.lewisinsurance.com.au/when-should-a-business-have-loss-of-profits-insurance/

23/02/2024

Plant and equipment insurance is vital for businesses that utilise heavy machinery and complex equipment in their operations. This specialised form of insurance safeguards against a wide range of risks, providing essential financial protection and supporting business continuity.

Have a read through the below article for a more detailed look at why this insurance is critical and contact Lewis Insurance Lewis Insurance Services if you would like to know more.

Plant and equipment insurance is vital for businesses that utilise heavy machinery and complex equipment in their operations. This specialised form of insurance safeguards against a wide range of risks, providing essential financial protection and supporting business continuity. Here's a more detail...

09/02/2024

What is the difference between a Principal's Indemnity and an Interested Party for insurance policies?

Understanding key insurance terms like "Principal's Indemnity" and "Interested Party" is important for business owners, with a lease contract or bank financing for the premises.

Understanding these concepts will help you to ensure your key risks are managed and that the right type and amount of insurance is in place.

Principal's Indemnity

Definition: a principal is the person or company that engages or employs your business. Many principals include a clause or requirement in their contracts or work orders that you or your insurer will be responsible (indemnify them) for all losses and damage and also pay their legal costs if there is an accident when doing the work.
Insurance policies do not automatically extend to indemnify Principals. So, you need to speak to your insurance adviser and provide details of the work to be undertaken and why the principal has required that they be indemnified by you and your insurance.
Principals do not have any right to discuss the insurance policy cover or make any changes with the insurance company, only the person that purchases the insurance policy (Named Insured) has this right. Principals can check with the insurer to see if a policy is current, they can notify a claim to the insurer, if not already reported and may also some limited involvement in the claim settlement. They do not receive any claim settlement money, as they are not the Named Insured.
Implications for Clients: Insurers need to be advised of any requirements to cover the principal, if they agree an additional premium is likely to be payable as the insurer is agreeing to extend cover to your principal, increasing the risk.

Interested Party

Definition: An Interested Party is a person or company that has a connection to what is being insured. For example, the owner or landlord of a building usually requires to be noted on the property insurance, as they are interested in building repairs or claims being made. They are not an Insured under an Insurance policy, so have limited rights under the law.
Insurance policies don't usually note Interested Parties, although some policies may include landlords and banks/ financiers automatically. It’s always best if you speak to your insurance adviser and discuss any interested parties that are required to be listed on your insurance.
Interested Parties do not have any right to discuss the insurance policy cover or make any changes to the insurance with the insurance company. Only the person who purchases the insurance policy (Named Insured) has this right. Interested parties can notify a claim the insurer if not already reported and may also have some limited involvement in the claim settlement or can check to see if the policy is current. They do not receive any claim settlement money, as they are not the Named Insured.
Implications for Clients: Insurers should be notified of any Interested Parties, this is usually done at no additional premium, as the insurer is not extending cover. The rights of an Interested Party are limited. They can confirm insurance is in place/ renewed and will only be contracted in the event of a major claim.

Both the Principal's Indemnity and the Interested Party can be noted on insurance policies in accordance with a contract or agreement. The insurer needs to be advised of the reasons and may charge an additional premium for extending the cover to a principal.

Understanding these concepts can help to ensure you have the right type and amount of insurance cover in place. Speak with your insurance adviser for further advice.

01/11/2023

Are there consequences if I fail to Disclosure Important information to an Insurer?

Click the link below and find out 👇👇
https://www.lewisinsurance.com.au/insurance-policies-and-your-duty-of-disclosure/

29/10/2023

How your operations impact Workers’ Compensation insurance premiums

Insurance companies charge an amount of money for each policy, called the premium, which is based on a set of rating factors that take into account your business operations, the industry and prior claims history.

All industries have risks; for example, construction, logging, and mining are physically demanding and have a higher likelihood of machinery-related personal injury claims or exposure to dust, while warehousing and logistics have a higher incidence of back and arm injuries.

Although office-based occupations may have a low personal injury risk, there is an increased risk of mental health issues leading to anxiety or depression. These types of physiological injuries can also have long terms affects, not only physical-related injuries.

Therefore, managing your operational environment and ensuring your employee well-being is key to reducing or potentially eliminating the risk of injury and workers’ compensation claims.

There are very good (free) guides to risk management online, including SafeWork NSW Workplace or When to use risk management.

It’s been proven that a business with a high level of risk management will have fewer claims involving employees and visitors. Therefore, directly reducing both the length of the time away from work and size of the claim and also premium.

Employers with a poor safety record or inadequate risk management will likely have higher insurance premiums than those who prioritise safety and invest in risk management.

Ultimately, working conditions can have a significant impact on your insurance premiums.

General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

24/08/2023

Both consumers and businesses have been impacted by inflation over the past three years.

Although Inflation is generally decreasing, the cost of building materials, machinery and equipment and car parts have increased by 25% in the past three years.

Like any other business, insurers have been impacted by inflation, including costs of repairing cars and rebuilding costs, which have been passed onto customers through increased premiums.

It's important to understanding the reasons behind inflation and how this impacts your business.

Speak to your Insurance Adviser today to discuss options for you and your business.

12/04/2023

Every business and industry has occupational and safety hazards that can result in injury to employees and contractors. Some workplaces have a higher risk of work-related incidents than others. Despite how big or small your business is, regardless of the industry or the state or territory, all business owners are required to protect the health, safety and welfare of their employees and other people at work.

While worker's compensation insurance helps to manage the financial costs of medical bills, wage payments and lump sum awards for permanent injury, it doesn't pay other hidden costs such as reduced productivity, team member stress, reputational damage, overtime etc.

What is work health and safety (WHS)?

It's essential and also required, under OH&S laws, to manage workplace risks for employees, customers, visitors and suppliers. Managing WHS may initially cost money and time to implement safe practices and install safety equipment. However, not taking action can result in prosecution, fines and loss of skilled staff.

Managing health and safety

A workplace health and safety management system is a set of policies, procedures and plans that systematically manage health and safety at work and can help to minimise the risk of injury and illness from workplace operations.

There is a lot of free material online to assist in managing work health and safety risks, including How to Manage Work Health and Safety Risks from WorkSafe QLD.

Well-designed policies and procedures help organisations comply with work health and safety legislation and regulations, assist employees by minimising injuries at the work site, as well as minimising indirect costs to the company.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs.This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

Disclaimer:
This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement.