Tax Audit Insurance Cover
The Australian Tax Office (ATO) predicts up to 15% of SMEs will be subject to the ATO's compliance program - including some form of tax audit. This is a time consuming and expensive affair that could leave clients with a bill for thousands of dollars.
Tax Audit Expense Insurance covers professional fees in addition to the regular fees you ordinarily pay your Accountant, that you get charged for when associated with audits and other official investigations including ATO Income Tax, Fringe Benefits and Capital Gains Tax audits, audits of WorkCover returns and Payroll Tax.
Some insurers offer extra protection to trustees of self-managed superannuation funds.
We are able to buy this cover as a stand-alone product, or you can add it into your Business Package Policy or even some Management Liability policies.
If you are an Accountant, we can also set up a scheme for your clients to access exclusively or arrange a policy to cover all your clients automatically which can be offered as an "add in" to use your firm as better value firm to deal with.
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Employee Dishonesty Insurance
This cover is also known traditionally as "Fidelity" or the more recent terms of Crime cover, Employee Theft or Employee Fraud.
Most of the policies concern only internal theft by staff but some Commercial Crime policies also cover external events. These are more specialist covers and certainly worth considering, but for small to medium businesses unfortunately they often have an ongoing problem with their own staff helping themselves.
The loss covered by the policy is when a staff member dishonestly or fraudulently takes their company's assets such as money, negotiable instruments or goods during business operations.
There is still an onus on the Insured policyholder to follow certain conditions of the cover when needing to make a claim including only being able to report a matter where it has occurred in the past 12 months and you have up to one year if the policy is not renewed or lapsed to find and report the matter to insurers.
The policy also covers the claim preparation costs in establishing the extent of loss. Also the section can be extended to include Super Funds and Social Club funds.
This cover can be bought as a stand-alone policy but is quite cost effective when taken as a section of a Business Pack or within a Management Liability policy. Some Professional Indemnity policies can be extended also for Fidelity coverage but this is aimed at the Trust Funds or money belonging to clients that Professionals can often be responsible for.
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An Irish Perspective
Paddy asks Mick: "Why do Scuba divers always fall backwards off their boats into the water?"
Mick replies: "Think about it Paddy. If they fell forwards, they'd still be in the boat."