Each event comes with unique risks, from corporate conferences to music festivals.
Weather disruptions, venue mishaps, supplier failures, and unforeseen cancellations are just a few pitfalls that could derail even the most meticulously planned occasions.
While recognising and mitigating these risks is paramount, insurance can provide financial protection and peace of mind.
It could shield organisers from the costs associated with unforeseen circumstances.
Whether it's property damage, liability claims or event cancellation, the right insurance coverage can spell the difference between a minor setback and a catastrophic loss.
Why liability insurance is essential for events
Liability insurance is one of the main insurances that event companies rely on. This protects organisers from legal and financial liabilities arising from accidents or injuries that happen during the event.
From slips and falls to equipment malfunctions, liability insurance may provide protection against lawsuits and compensation claims, allowing organisers to focus on delivering memorable experiences.
Event cancellation insurance is another essential part of risk management for these businesses. Even after months of effort planning an event, unforeseen circumstances like extreme weather, natural disasters or unexpected vendor cancellations canderail an event at the last minute.
Event cancellation insurance may reimburse organisers for expenses and revenue and minimise the financial fallout of a cancelled or postponed event.
"Event organisers often take out policies for specific events. If they run five or six events a year on one property, the policy might cover all the events," says Michael White, Steadfast Broker Technical Manager.
Insurance For Small Businesses With Flood Risks?
What are the key risks posed by flooding?
Flooding can have a devastating impact on your small business, causing damage to your premises, fittings and fixtures, plant and equipment and stock and disrupting your ability to trade.
Even businesses outside of the flood zones can feel the impact of flooding, with supply chain disruption affecting their ability to access goods and demand surge increasing the difficulty of accessing some services.
“Flood insurance covers the situation when normally dry land is covered by water that has escaped or released from a lake, river, creek or other natural watercourse, or a reservoir, canal or dam.”
Flood Insurance, Understand Insurance, Insurance Council of Australia
Who should consider it?
While you can’t control the weather, insurance can help to protect small businesses across Australia from the risks posed by flooding to both their premises and trading. Any business located on a creek, lake or river should consider adding a flood insurance extension to their property policy.
Understanding how landlord insurance works?
What's typically covered in a landlord insurance policy?
A landlord policy typically comprises a combination of building, contents and landlord insurance.
Property damages from natural disasters (such as fire, flooding and storms) are likely to be covered, as are possessions kepton the rental premises for maintenance purposes, such as tools and gardening equipment.
The landlord component of the policy typically covers loss of rental income if the property becomes uninhabitable. This couldhappen as the result of a covered event, rent default, damage or theft by tenants and their guests, liability in the event of anaccident, and legal expenses, if necessary.
What landlord insurance doesn’t cover are the regular costs associated with being a landlord.
This could include construction defects, normal wear and tear, and ordinary expenses, such as plumber’s bills for clearing drains.
“The landlord component of the policy typically covers loss of rental income if the property becomes uninhabitable”
Paying for peace of mind
Landlord insurance has proven a worthwhile investment for Rodney Holder, whose property portfolio includes a block of units in the central Queensland town of Rockhampton as well as houses in Canberra and Brisbane.
His policy covered the cost of making good the damage caused by one less-than-careful tenant in his Canberra property,including torn curtains, a hot pot burn mark on a newly laid floor and a broken door on a new oven.
“As with any insurance, you’re paying for peace of mind,” Holder says. “It’s also tax deductible and a cost of doing business.”
Other claims can be significantly larger, warns Jo Napoli, the Principal of real estate agency The Rental Specialists.
She recently helped a client evict squatters from their investment property and says the bill for lost rent, new locks, damage to the premises and cleaning came to just under $10,000.
After being provided with a copy of the condition report, tenancy ledger, photographic evidence of the damage and invoices for repairs, the client’s insurer paid the claim within 14 days, Napoli says.
Contact us today to discuss any questions you may have
Trades Insurance At A Glance?
What are the key risks for tradies?
From putting up scaffolding to welding and bricklaying, there’s always a lot happening on a building site, no matter if it’s a tall structure or a residential dwelling and everything in between. Which is why it’s so important to have insurance.
The hazardous environment of most building sites is one of the biggest risks tradies such as electricians, plumbers and carpenters face. Hot works, incomplete electrics and scaffolding are just some of the hazards tradies navigate every day. The need to use often-dangerous tools can also increase the chance of physical injury. This means the risk of injury can be much higher than for people working in places like an office.
If you employ contractors, there can be an additional risk they will become injured and they could make a claim against you. Theft of tools from building sites or vehicles is another significant problem for trades workers.
“Almost 190 Australian tradespeople lodge workers compensation claims every day."
SafeWork Australia, 31 July 2022
Who should consider insurance?
Trades insurance is a good idea for sub-contractors and sole traders. If you are a subcontractor, you may be able to make a claim on the main contractor’s policy. But it can be dangerous to rely on these policies as you may not be covered and do not have any control over it.
Public and Products Liability Insurance At A Glance?
What is public liability insurance?
If an accident or unforeseeable incident causes damage or injury to someone (other than your employees), you may be found legally liable to cover the costs. Public liability insurance can help to protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence.
"Public liability insurance helps protect you and your business against the financial risk of being liable for negligence.” Australian Government, Business.gov.au
What is product liability insurance?
No matter how stringent your company is, mistakes can happen. For example, you may design or sell a product that causes a customer harm. Even if you’re not at fault, you could risk serious financial damage through legal and court costs if a customer decides to sue you. Product liability insurance is designed to help protect your business if you’re sued because a product you sell, assemble or supply has caused harm to a person or property.
Who should consider it?
While public and product liability insurance isn’t mandatory for most businesses, it is recommended for all companies. That’s because the unpredictable nature of accidents makes them hard to prevent – and the costs of being sued can be extraordinarily high.
Strata Insurance at a glance?
What is Strata insurance?
If you own a townhouse, unit, or apartment and you’re sharing common space with others, you don’t want to be left to foot the bill if there’s damage to shared parts of the building or items.
Strata insurance protects the building and common areas or facilities, with the premiums paid for by the owners’ corporation.
“Strata insurance is complex and owners corporations and corporate bodies need trusted people to navigate them to the best outcome.” Strata Community Association, 2021 Who should consider it? Strata insurance is compulsory in every state – so if you are a lot owner in a townhouse, unit, flat, apartment or duplex, the owner’s corporation will need strata insurance.
An insurance broker can arrange strata insurance on behalf of the owners’ corporation.
For more information give us a call on 1300 887 911
Motor insurance at a glance?
What is motor insurance?
Motor insurance can cover your motor vehicle against accidental damage and theft. It can also protect you from the financial costs of repairing or replacing another person’s vehicle caused by an accident where you’re at fault. With a motor insurance policy, you can choose to insure your car for an agreed amount, or for the market value of your vehicle- up to $150,000. Above $150,000 will be considered on referral
While 99% of Australians claim to be safe road users, 71% admit to breaking road laws".
Australian Road Safety Foundation, 2022
Who should consider it?
If your car is damaged in an accident or stolen, comprehensive motor insurance pays for repairs to your vehicle – or replacement costs if your car is written off. Third party property damage (TPPD) insurance – covers the costs you may be liable to pay if you are at fault and damage someone else’s car. Third Party Property Damage insurance can be purchased as part of a comprehensive cover or as a standalone policy. However, if you only have standalone cover, there's no cover for any damage to your own car.
What usually isn't covered?
Each policy is different, but generally you won’t be covered if the vehicle is:
Being driven by an unlicensed driver unless you did not know that the driver was unlicenced.
Being driven by you or any other person while under the influence of any drug or alcohol unless you did not know that the driver was affected.
Being used in any motor sport or time trial.
Exclusions, the excess you need to pay, and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk and the insurer
Professional indemnity insurance at a glance?
What is professional indemnity insurance?
Anyone can make a mistake – but if your business is found liable for negligence, the costs can be financially devastating. Not only can it lead to an expensive lawsuit, but your business’ hard-earned reputation may be damaged as a result.
That’s why professional indemnity insurance matters – for help protecting your assets and brand if your advice causes a client to take legal action against you.
“Professional indemnity insurance helps cover the cost of legal action due to your professional advice.”
Who should consider it?
Professional indemnity insurance is mandatory in some industries, such as medicine, accounting, law and financial advisers – with the requirements differing from state to state.
But even in cases where it’s not required by law, it’s recommended for anyone who is providing professional services or advice in exchange for a fee – like, graphic designers, IT consultants and more. Regardless of your legal obligation, it’s often a customer requirement that you have this cover in place.
Helping small businesses prepare for natural disasters?
Climate change and other factors mean the risk of natural disasters adversely impacting small businesses is rising. But there are many steps firms can take to reduce the risk of flood, fire and other catastrophes affecting their operations.
While we can’t control the weather, there are plenty of actions small businesses can take so that in the event of a natural disaster, their premises and their staff have good protection.
It is important to have a plan, There are lots of resources to assist businesses to prepare for natural disasters. What’s important is to have a plan in place and understand the steps to follow if a major catastrophe is imminent.
How to prepare for fire
The first step in preparing for a fire is to understand the risks you face. This starts with an assessment of how your physical premises could be affected by bush or other types of fires.
- Review how close the building is to vegetation, as well as the type of vegetation and its dryness.
- Learn how different weather patterns and topography could affect your business premises. The incline of the land on which the building stands is key here, with buildings on a slope or located at the top of a hill surrounded by bush typically at greater risk of fire damage.
- Keep an eye on weather patterns and be aware of present threats by regularly checking media such as local radio stations.
How to prepare for storms, floods and cyclones
The La Niña weather pattern means it’s critical to be prepared for more frequent and severe storms and rain events. As with bushfires, the first step is to clear gutters and downpipes of debris and anything else blocking them to help prevent water ingress in the event of a storm. It’s advisable to hire experienced tradespeople to do this work.
Always keep an eye on upcoming weather patterns so you can be prepared for a storm, which can often form suddenly. If there is a storm approaching, ensure vehicles are undercover to protect them from hail. Also make sure any objects surrounding the business premises that are untethered such as signage are tied down to prevent them from causing damage to people or property.
It’s also essential for the business to develop a communication and evacuation plan and processes to follow if a storm or other weather event is approaching. This involves making sure first aid kits are accessible and stocked.
Back up all the business’ data, ideally in the cloud. Depending on the nature of the threat, it may be advisable to remove any IT and electronic equipment from the business premises or re-locate equipment on lower floors to higher ground. This also applies to any stock that could be damaged by either storms, floods or cyclones.
What does product liability insurance cover?
Product liability insurance is part of public liability insurance. It helps protect businesses that manufacture, sell and import products that are bought and used by the public. This cover provides protection when someone claims to have suffered personal injury or property damage as a result of your business's product.
Let’s say a power tool fault electrocutes a builder, a faulty airbag means it doesn’t inflate on impact injuring a passenger, or a chair fails and causes someone to fall off it and break their arm. The power tool manufacturer, the airbag manufacturer and the chair maker could be at fault and need to rely on their product liability insurance to respond to any legal claims made against them as a result of these incidents.
A claim could also be made against the retailer of the product and the importer of the product if it was imported. Under Australian law, an importer of goods is in some situations deemed to be the manufacturer and can be subject to the same legal obligations as the actual manufacturer.
Product liability issues can fall into one of these three categories. The product has a fault in its design, there’s a fault created by the manufacturing process or there’s a labelling fault. This means the product does not come with adequate safety warnings or instructions as to use.
“Every business should consider product liability insurance, because the policy has a very broad definition of what your product is,” says Michael White Steadfast Broker Technical Manager. “Your work is your product under these policies, not just the goods you sell. For instance, let’s say a tradesperson comes into your house and repairs your washing machine. Their work is the product. A claim arising out of defective repair work can be a product liability claim, not a public liability claim.”
White says importers should also be aware as the importer, they can be liable for defects in the products they import, as well as the offshore manufacturer being liable.
If you’re in business, chances are you may need product liability insurance. Talk to your broker today to make sure you’re covered in the event your products or the work you do leads to harm or injury.