Your small business insurance needs for 2019
New Year, new you, right?
Well, when it comes to your business, it's more a case of: New Year, new risks.
If you're looking for a New Year's resolution for your business, here are five trending risks where you should consider insurance cover to get your business insurance on track for the year ahead.
1. Legislation, regulation and the Federal Election
An Allianz survey recently identified changes in legislation and regulation as topping the list of business risks Australia business will be facing this year.
In fact, 36 per cent of respondents to the survey said they were most concerned about “increasing and more onerous regulation” - up 28 per cent from 2018.
This sentiment reflects a number of timely factors, including trade wars and tariffs (given the current tension between China and the USA), economic sanctions, protectionism, Brexit, and Euro-zone disintegration.
The next Federal Election must also be held on – or before – 18 May 2019, with many pundits predicting Labor will replace the Coalition in government.
A change in government could likely see a number of Coalition policies rolled back, as well as the implementation of Labor's own policies.
The policies and slated legislative changes that could affect your business will depend on what industry you're in, so speak to one of our brokers , for a detailed summary of insurance implications.
2. Cyber risks
Over the last two years, almost half (43 per cent) of Australian organisations who responded to a survey cconducted by PwC, said they had suffered a cyber attack. However PwC believes the actual figure is “probably much higher”.
PwC adds businesses still aren't doing enough to guard themselves against cyber threats.
The survey also showed, almost half (48 per cent) of businesses had not completed a cyber vulnerability assessment, while over one-third (36 per cent) didn’t have a cybersecurity plan in operation.
“Once solely the domain of large corporations, tech solutions that rely on Artificial Intelligence (AI) or Machine Learning solutions are increasingly being taken up by small businesses”
3. Business Interruption
Allianz’s survey also showed that cyber incidents ranked as the most feared business interruption trigger for businesses.
However it's far from the only business interruption concern.
The results of the survey illustrated that businesses are also worrying about issues such as the impact that fire, explosion and natural catastrophes will have on business revenue.
The right Business Interruption Insurance policy can minimise some of these risks for your business. A business interruption policy can help ensure your business continues to run smoothly if the insured property is damaged or lost after a catastrophic event such as fire.
It can cover such things as ongoing costs, so your business can recover and rebuild.
4. Technological trends
Technology is a fluid beast to tame in the business world, and the pace of change is only accelerating.
Once solely the domain of large corporations, tech solutions that rely on Artificial Intelligence (AI) or Machine Learning solutions are increasingly being taken up by small businesses.
Some are trialing new products to get the jump on their competitors, others are doing it on the fly because their rivals are, while others are using it to cut down costs and have chatbots act on their business's behalf.
Whatever your business' reasons, you need to make sure you correctly implement the technology and have the right Business Insurance, to help you cover off your risks.
5. The rise of the remote worker
Technology has changed the way employees work. It's no longer a nine-to-five world out there, with cloud computing technology enabling workers to access their emails and company files from anywhere in the world.
As such, employees are increasingly demanding more flexible hours and their employer's permission to work from home.
According to a global study by the International Workplace Group, 70 per cent of employees are working at least one day a week somewhere other than the office. More than half (53 per cent) work remotely for half the week or more.
This brings with it a whole set of Workplace Health and Safety risks, due to your duty of care as an employer to ensure employees are working in a safe environment.
In instances like this, it is crucial to have the most suitable Professional Indemnity Insurance, Management Liability Insurance and Workers’ Compensation Insurance to help ensure you are covered in the event of an accident or legal action.
However, if you decide to go the other route and harness the power of the “gig economy” by outsourcing to freelancers and contractors, that introduces a whole set of “grey area” risks on whether they can be deemed an employee of yours.
As such, this could open your business up to a potential lawsuit from the contractor around salaries, superannuation and working conditions down the track.
Just as everyone has their own fresh outlook and resolutions for 2019, every business faces its own unique risks and potential insurance solutions.
So, for expert advice on the best insurance solutions for your business, talk to one of our brokers to help ensure your business is covered and you can have a happy and prosperous 2019.