Risky Business

June 2012

People On Hand

Welcome to this month's edition of "Risky Business".  

With the end of the financial year fast approaching, this month we discuss Business Insurance package policies. Read more below.   


  Insurance News 

Business Insurance package policies - worth reviewing


30 June is fast approaching and many businesses have their insurance due at this time. Therefore  it is timely to review the extent of cover you have and whether you should also include additional covers for protection.


The Fire and Perils Cover


The Fire and Perils Cover - are your sums insured enough? Are you carrying more stock this year? Have you bought or replaced equipment (particularly computers and printers) that are more valuable? Have you replaced office contents? Do not forget that insurers place average/coinsurance clauses in policies that means in the event of a minor loss you will only receive a proportion of the items replacement cost if insured for less than 80% (with most insurers) of its full value.


Then if you are a building owner, it is recommended that you have regular valuations, not necessarily on what the property is worth, but what it would cost to rebuild it and how quickly so that you are back in business or able to collect rent from a tenant to pay all your regular bills and expenses.  


Click here for more information.


Then there are other sections available as extensions in the Fire Section, including Flood cover, Accidental Damage, Landlords fixtures and fittings, playing surfaces that may be relevant to your situation. Do not be afraid to discuss these with us and never assume they are automatically covered. In many cases they are not.


Closed Sign
Business Interruption Cover


This leads us on to  Business Interruption cover which is one of the most overlooked yet most important areas of cover. If you do not have this cover you should do. It is one of the areas of risk that can cause bankruptcy, along with Liability covers, if not taken. If you do have it, then you need to make sure it is adequate. CPR Insurance has access to LMI resources that can provide calculators to enable an accurate estimation of the sums insured you need. Also do not forget the Indemnity period as it can take longer than you think to get a business back to normal turnover following a Fire, Storm or any other insured peril.  


Click here for more information.




One of the more expensive sections of a Business Pack policy is the Burglary section. Fortunately this section can be sub-limited and is not subject to an average clause. You should however think about the scenario of a break-in. While it is rare thieves take everything, what is it they are most likely to take? What is easily carried out of the building of value that can easily be off-loaded? Money or cash is one area but this has its own section of the policy that should also be reviewed. What you may want to consider further is the adequacy of your security as the better this is, the less Burglars are likely to take. A good alarm system, deadlocks on doors, security lighting, CCTV camera systems, Bars or Grilles on windows, reinforced or strengthened plate glass windows or Roller-doors and depending on the situation, perimeter fencing and bollards are ways to reduce the chance of a break-in. The more we reduce these types of claims, the cheaper over time these premiums will become. 


Man walking Tightrope
Public and Products Liability Insurance 


Public and Products Liability Insurance is the must have for every business and is included within the Business Package policy. It is determined by either turnover or staff numbers, as well as the type of business you are in. Make sure that the description of business is correct or broad enough or there can be an argument with insurers if a claim arises. For example if you are a retail shop, the description should not be shown as an office. Further, is your cover adequate enough? Did you know that that the Insurance Council of Australia and the National Insurance Brokers Association all recommend a minimum of $20,000,000 cover? Not necessarily for claims settled today, but if that claim had to be settled long into the future which can happen with some matters. Further $20,000,000 may not be enough for various types of manufacturing industries particularly in the area of Product Liability which is aggregated to one limit.  


Click here for more information.  


Then do not forget about the other sections in a Business Pack policy available to you. These include Glass, Machinery Breakdown, Electronic Equipment Breakdown, Transit, Employee Dishonesty  and some Business Packs even include Motor vehicle. Even  Tax Audit and Management Liability cover can be included with some insurers.  


CPR Insurance Services have the expertise to save you from taking out the wrong cover. We can save you time in analysing the different covers available. We can save you with easy to understand explanations of all areas of general insurance. Do not ever hesitate to call us for assistance on this and other covers. CPR Insurance are experts who will save you!   


30th June


The simple answer is no. Perhaps it might be from the point of view of keeping everything neat from an Accounting point of view, however with so many client's policies falling due at this time of the year, underwriters and brokers are sometimes just too busy to do the best possible on your insurance programme. It is hard to get hold of underwriters if there is a problem or you need to negotiate terms. If seeking alternate terms from insurers, they sometimes decline to quote because they do have enough time to even just concentrate on existing policy holders.


We do believe we can do a better job for our clients, if we can either have the renewal details provided as early as possible to insurers even though many do not like to quote more than 30 days outside of expiry.

The other way is to move your expiry date earlier to either 31 May or 30 April or extend it to 31 July or 31 August. Insurers are generally quite accepting of this. It is a quieter time to do the best possible job on renewing your insurance programme and we believe we will usually get a better result for our clients. So consider a shift away from 30 June if you policies fall due then.

  Joke of the Month 

Blonde Locks
Blonde Locks


An airline captain was breaking in a very pretty new blonde stewardess. The route they were flying had a stay-over in another city, so upon their arrival, the captain showed the stewardess the best place for airline personnel to eat, shop and stay overnight.


The next morning as the pilot was preparing the crew for the day's route, he noticed the new stewardess was missing.


He knew which room she was in at the hotel and called her up wondering what happened to her.


She answered the phone, sobbing, and said she couldn't get out of her room.


"You can't get out of your room?" the captain asked, "Why not?"

The stewardess replied, "There are only three doors in here," she cried, "one is the bathroom, one is the closet, and one has a sign on it that says 'Do Not Disturb'!"





See you next month.




NAS Broker  


Fifty Plus


Types of Cover





NIBA Member




Couple at Computer