How Exposed is your Business Really?

Posted: by Matthew J Denehy

Insurance is about covering risk; risk that could have a very big impact on the livelihood of your business and for that matter, you personally! Risks that could force it into liquidation and drive you bankrupt.

It’s not glamorous and many people view insurance as a necessary evil looking for the fastest answers and the cheapest prices. Funny when you consider how much time, energy & money business owners put into making their business a success. Only to leave it vulnerable to risks they have not bothered to investigate or understand.

For example: ABC Media* is an importer and provider of digital media boxes to businesses for their phone & office based music and messaging. A sizeable business that has been flourishing for the past 8 years. They had business insurance and the owners assumed that the business was covered in the event of any adverse events.

A meeting with myself proved otherwise.

It is important to us to understand exactly what a client’s business does and has: all its areas of activities and assets.

Over the course of an in depth business audit I discovered that:

1. The fit out, equipment & inventory was insured for $150,000 even though its replacement cost was $370,000

2. The business had no consumer protection insurance. Even though ABC Media had liability insurance for their office operation, they were also an importer of products. As an Australian company under consumer protection laws it is deemed to be the manufacturer of those products, even if the actual overseas manufacturer still exists.

Can you imagine if any of the electrical & electronic digital boxes caused an accident / fire to a business and their premises burnt down what the loss would be, let alone the loss of profit that business would claim due to ABC Media being liable. Without insurance it was totally exposed

3. They had no cyber protection. Imagine if you will a “digital fire” rather than a physical fire, in the event of any loss from ransomware, hacking or even loss of business data due to poor back-ups and the cost of rectification of the system let alone the liability to any third party for the personal data that may be exposed to the public and the ongoing monitoring of that data after it is exposed.

4. The directors had no insurance themselves. In the case of any losses arising from business activities, directors could be held liable for their actions and in which case ALL their assets are exposed – even the family home.

It’s about asking the right questions and digging deep enough to identify a client’s real need, I see it as one of the fundamental differences with Agile Insurance Advice.
It’s the job of an insurance advisor to run through an in-depth audit process and provide advice to their clients that they can rely on. They identify the exposures and make recommendations for business owners to consider and decide. After all, it’s their risk!

A business insurance audit at no cost to you – to know that you are really covered

As a special offer to any NRBM business owners the Agile Insurance Advice team is offering a complimentary audit of your business insurances. If we uncover any significant exposures we will point them out and make recommendations for you to consider. If nothing is found we will
tell you and at least you will have the peace of mind to know you are covered.

This offer is open until 30th November 2016. To take it up just call 1800 781 468 or alternatively e-mail
*Name changed to protect privacy of the business

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