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Business Risks to be Aware of in 2020
Cyber-crime, climate change, natural catastrophes, bushfires, floods and storms are all real-world problems that businesses need to contend with in Australia. We also can’t ignore the recent COVID-19 virus that has posed significant problems for many SMEs. Then there is the Brexit challenge, as well as any trade fall outs that stem from COVID-19 and the interplay between China and the rest of the world (notably Australia, UK and US).
Let’s take a look at some of the problems that face Australian businesses and how the right type of insurance cover can reduce your risks and help to mitigate potential losses.
Cyber-crime and cyber insurance
Cyber-crime costs the Australian economy more than $1 billion each year and it continues to climb. Recent research has found that 43% of all cyber-crime is targeted at SMEs with 53% of employees in medium sized businesses admitting to have compromised their employer’s networks. These problems stemmed from downloading apps, opening links in unverified emails and sharing these emails among work colleagues, and not updating software regularly.
Opening emails and embedded links from unverified sources cost businesses more than $60 million alone in 2018. Then there’s the fake invoices that are sent to customers and the loss of personal customer information. This is just the tip of the iceberg, but the take home message is that SMEs need to have a cyber policy in place, because it can easily happen to any business.
Employees also need to be consistently and regularly trained about cyber-crime and how their actions can compromise their employer’s business. However, no business is infallible, meaning that even with the best of intentions, your business may become a victim of cyber-crime. This is why all SMEs need Cyber Insurance to reduce their risks should it ever occur to their business.
Employees also need to be consistently and regularly trained about cyber-crime and how their actions can compromise their employer’s business. However, no business is infallible, meaning that even with the best of intentions, your business may become a victim of cyber-crime. This is why all SMEs need Cyber Insurance to reduce their risks should it ever occur to their business.
Inability to trade and Business Interruption Insurance
Natural disasters, loss of essential equipment and even arson, are all causes of businesses being unable to trade for a significant period of time. Bushfires, storms, cyclones and floods, someone stealing machinery that’s the focal point of your production line, an arsonist setting fire to your warehouse. These are all tragedies that can put your business out of action for days, weeks or months. So who pays your bills?
The building lease still needs to be paid, as well as the utility bills, suppliers, employees, work cover, and any other machinery, equipment and vehicle leases. Just because your business is unable to trade, doesn’t mean that your bills go away. This is where Business Interruption Insurance comes into play because it helps you pay these essential bills during the time you can’t trade. Always discuss these risks with an experienced insurance adviser so that your business has the cover that’s needed.
What about Brexit, trade fall outs and climate change?
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
What about Brexit, trade fall outs and climate change?
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Lisa Carter
Loss of supply chains and access to resources, Brexit, trade fall outs and climate change are all problems that may well be faced by SMEs in the near future. Your best option is to identify how these risks may affect your business and then put strategies and insurances in place to mitigate your risks. You can also leverage the expertise of your local insurance adviser who will be up to date on all potential challenges to your industry in the near future.
To speak to an insurance adviser about managing your businesses risks and safeguarding it against further challenges, contac Lisa Carter today.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
Clear Insurance Pty Ltd. ABN. 41 601 916 689. AFSL No. 548953.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
All information above has been provided by the author.
Lisa Carter, Clear Insurance, ABN 41601916689, AFSL 548953
QUESTIONS? JUST ASK
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