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The Different Types Of Business Insurance You Should Consider

By 30/11/2021 April 26th, 2022 No Comments

What Is Business Insurance? 

Business Insurance is the broad term for a suite of insurance policy products offered to businesses of all scales, from the sole trader to the multinational. Each type of policy provides coverage in the event of various kinds of potentially adverse or costly scenarios that may befall your business. Such an event may include, but is not limited to, breaches of privacy/data, injury to either customers or staff, a cyber attack, the theft of company property, or claims of negligence. 

These policies provide financial support to the covered business in the form of either the payment of associated costs or a claim payout as determined by the particulars of that policy’s terms. Each insurance provider will have an associated waiting period for their policies, as well as other stipulations and exclusions, so be sure to always read the individual product disclosure statement before choosing the best product for your business’s financial situation.

This overview has been produced in collaboration with the Founder and Director at CMX Insurance, Cindy Lau, a valued partner business of Equil Advisory and experienced risk specialists with a wide range of insurance solutions for your needs.

What Are the Different Types of Business Insurance in Australia?

Professional Indemnity Insurance

Sometimes referred to as ‘White Collar Insurance’, this type of policy provides insurance coverage tailored for businesses that provide professional advice or skilled services, such as accountants or lawyers. There is the risk of human or technical error for these service providers in the performance of their role, and that can lead to significant associated financial loss or injury for their clients. There may be claims of negligence, or a breach of duty as a result of such damages.

In the event of an error in the delivered product, or incorrect advice that might result in a claim from their client, the covered business has a pre-stipulated level of protection with regards to the associated legal costs. In some instances a data or privacy breach may also be covered under such a policy. As noted by Cindy Lau, Professional Indemnity Insurance is often mandatory as a minimum requirement for skilled professionals to gain or retain certain qualifications.

Public Liability Insurance

If business activities or operations result in any level of injury or damage to a member of the public, or their property, then they may be liable to pay some extensive costs. A member of the public not only includes customers and clients, but also passers-by who may be at potential risk. An example of such an event might be a physical injury, such as a fall, sustained by a client whilst within your business premises. Public Liability Insurance policies provide different levels of insurance coverage to account for the costs of the associated claim against you.

A similar policy type offered by CMX Insurance is Product Liability Insurance, which provides coverage in apprehension of any potential injury sustained by a customer or others due to use of your product, including after they have purchased and taken possession of it.

Cyber Liability Insurance

This type of policy covers a business from the potentially crippling damage of various kinds of cyber attack. Such an attack can include ransomware, phishing, and data breaches – as well as a number of other cyber crimes. The frequency of these kinds of events has only increased in recent years, however many small to medium enterprises (SMEs) remain uninsured against them. Cindy Lau notes that larger companies are now ensuring that such policies are written into their contracts with software developers and engineers.

The Cyber Liability Insurance coverage offered by CMX extends to accounting for the cost of an IT team to get your data back, and secure your systems, as well as alerting any customers who might be at risk, and paying for a regulatory investigation if necessary. There may also be associated fines and penalties covered under such a policy.

Business And Property Insurance

These policies cover potential damages to equipment, any offices and their contents, factory spaces and other such business capital and property. Such coverage may also extend to the theft of company property, by employees, clients or another third party. The policy provider may either replace the damaged property in question, or provide a payout to account for the loss.

Directors & Officers Liability Insurance (D&O) 

The decision-makers and board members of any given business are at risk of being liable as a result of the actions that they take. This can include allegations of inappropriately handling trade secrets and proprietary information, workers compensation claims, or the non-adherence to corporate governance frameworks. There can be protracted legal contests between competing businesses seeking to protect their interests. D&O insurance policies offer coverage for the costs of these types of claims.

The Process Of Applying & Matching With The Best Broker

For A Start-Up 

Prospective brokers will complete an initial risk assessment to determine the appropriate levels of coverage for the business. You need to be transparent with details such as the product offered, assets  owned, number of clients, and other particulars, so that in the event of a claim all of your details are already in order and your insurance provider can take more expedient action. Furthermore, specialty providers such as CMX will do a more thorough, situational analysis that contextualises the picture that the numbers provide. 

For An Established Business

A full, detailed business health check, with a corresponding insurance gap analysis, is required. There may already be some existing policies in place which need to be updated in order to correspond to changes in the business. With long-established businesses there is a greater potential for more complex accounts, as well as a more diverse customer base and so on, and that needs to be accounted for in their coverage requirements.

Matching With The Best Broker 

Cindy Lau from CMX insurance notes that not all providers are the same. As experienced risk specialists they see the relationship as a partnership, with the best insurance providers working with you consistently over time, to help scale your insurance needs up or down in line with changes in your business. This is the same as the sense of partnership that we foster with our clients at Equil Advisory. Contrastingly, some providers have more of a one-and-done approach which may not fully account for all potential risk.

In addition, there may be those that charge you prior to the uptake of any of their policies, just for the due diligence. Such is not the case with specialist insurance providers such as CMX. They are fully transparent with regards to any fees or broker commissions received, so that business owners have the clarity to be able to account for all expenditure.

When You Don’t Have The Right Cover

Study 1

We learned of a roofing company client who had previously bought Public Liability Insurance online, and assumed that they would be appropriately covered for damages. There was, in the months following, a large storm that caused catastrophic damage to the roof that they were in the process of building. When they went to make a claim they recognised that PL insurance only covers damage to third party property or injury to people. The insurance they needed to have was Construction Liability Insurance.

They have since left that provider and insured themselves with CMX Insurance, with a more detailed suite of policies that takes their particular line of work and the associated risk into account, in order to mitigate such an ordeal in the future.

Study 2

Another company had a worker’s compensation claim, that evolved into an employment practices liability claim, levelled at them by a member of staff, during a period when they did not have Directors & Officers Liability Insurance. The resulting legal action meant that they had to front up $60,000 in legal costs, with no coverage safety net to be able to recoup any of it. Despite the matter eventually being settled, there was no opportunity for the reclamation of those fees. Had they had a more thorough risk assessment done prior to these events, it may have concluded that D&O insurance was a necessary product for them to engage with and such circumstances might have been avoided.

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At Equil Advisory, we’ve assisted many of our clients in being able to locate and engage with the most appropriate insurance products, and partners such as CMX Insurance, for their needs. If you’d like to find out more, call our team of experts today.

Albert Tan

Business Services Accountant

Email Me

How did you end up at Equil Advisory?
I was looking for a new place to clear my throat and break the office silence.

When did you start at Equil Advisory?
When I was assured that there would be another Malaysian member of the team.

What do you do at Equil Advisory?
Play hide-and-seek in the bathroom.

What do you do when you aren’t at work?
Go to the gym.

What is something not everybody knows about you?
I don’t know how to pronounce geography properly.

If you had to apply for a reality TV show what would it be?
Survivor.

What would your last meal be?
Macaroni and cheese with milk.

Cats or dogs?
Neither.

Gaurav Shrestha

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Everyone I knew had caught on to my long stories, decided to go find new people who had never heard them before.

When did you start at Equil Advisory?
When I heard they were having a massive Christmas party.

What do you do at Equil Advisory?
Go off on tangents and ask people if they’re good.

What do you do when you aren’t at work?
I would be out hunting ghosts or singing while playing the guitar.

What is something not everybody knows about you?
No drop of rain has ever landed on my head.

If you had to apply for a reality TV show what would it be?
Masterchef Australia.

What would your last meal be?
Double beef burger and a steak on the side.

Cats or dogs?
Cats and dogs are the most popular pets in the world. Cats are more independent and are generally cheaper and less demanding pets. Dogs are loyal and obedient but require more attention and exercise, including regular walks. But what I actually really prefer, I guess it actually depends… -character limit reached-

Albert Tan

Business Services Accountant

Email Me

How did you end up at Equil Advisory?
I have always wanted to be an accountant due to the influence of my family as most of them are accountants. I joined Equil Advisory as it offered me a different opportunity to work on compared to other accounting firms as well as allowing me to develop different skills.

When did you start at Equil Advisory?
28th February 2022.

What do you do at Equil Advisory?
My role at Equil Advisory includes tax compliance work and assisting client in their day-to-day business with EA’s outsourced CFO function.

What do you do when you aren’t at work?
Spending time with my wife, talking to my family or reading light novels.

What is something not everybody knows about you?
Love spicy food even though I can’t handle it at all.

If you had to apply for a reality TV show what would it be?
Voice actor in any cartoon shows.

What would your last meal be?
Roti Telur Bwang.

Cats or dogs?
Love cats and dogs equally.

Pragti Sharma

Administrative Assistant

Email Me Linkedin

How did you end up at Equil Advisory?
I wasn’t allowed to give free food to my friends at Oporto anymore.

When did you start at Equil Advisory?
When I completed shopping for my professional wardrobe.

What do you do at Equil Advisory?
Listen intently to people’s conversations and mimic them during our lunch breaks.

What do you do when you aren’t at work?
Finesse my Australian accent.

What is something not everybody knows about you?
South India is my favourite part of India.

If you had to apply for a reality TV show what would it be?
Fear Factor.

What would your last meal be?
Steamed dumplings.

Cats or dogs?
Both!

Pragti Sharma

Administrative Assistant

Email Me Linkedin

How did you end up at Equil Advisory?
When I was a child, dealing in numbers was never a problem! But still, I passed mathematics on the verge.

Gradually, I realized that numbers are in my favour and so are the associated calculations. As a result, I pursued Accounting with Finance, which helped me develop an interest in accounting systems. Further, securing a career in accounting lead me to make my way to EQUIL.

This is my first professional job, and I am too excited to be a part of the team.

When did you start at Equil Advisory?
It’s my second week at Equil! I started on 10th February 2022.

What do you do at Equil Advisory?
I have started as an administrative assistant, so my work includes responding to the client emails and undertake day-to-day admin tasks.

What do you do when you aren’t at work?
Most of my time goes out at talking to my friends and family, back home in India. If, I still have more to go, Netflix is my best thing.

What is something not everybody knows about you?
I am only serious for who I want to be and what I want to achieve.
On the other hand, those who think I am serious, shouldn’t know, the time I tried the 30-day weight lost diet, I lost another 30 days!
I can never stick to a diet!!!!

If you had to apply for a reality TV show what would it be?
Fear factor - Khatron ke Khiladi.

What would your last meal be?
Anything and everything that I get hand-cooked by my Mommie.

Cats or dogs?
Dogs, only to watch them play from a distance.

Sabrina Truong

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
I wanted to see how people who eat unhealthy actually live.

When did you start at Equil Advisory?
Just as the second lockdown was about to begin, so I didn’t have to talk to people in person.

What do you do at Equil Advisory?
Eat raw veggies and perfect my American accent.

What do you do when you aren’t at work?
Driving around Sydney for the best fast food places.

What is something not everybody knows about you?
I eat banana bread with chopsticks.

If you had to apply for a reality TV show what would it be?
Man vs Food.

What would your last meal be?
Deep fried chicken and chips with extra chicken salt.

Cats or dogs?
Cats!

Sabrina Truong

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
My dad is a bookkeeper, so it was natural for me to choose accounting as a degree. Accounting allows me to help others grow their businesses and achieve their goals, which is something I am passionate about. I joined Equil Advisory because it is not like your typical accounting firm. I also wanted to be part of a team that is supportive and provides the opportunity for me to develop and grow my skills.

When did you start at Equil Advisory?
July 2021.

What do you do at Equil Advisory?
A large part of my role is focused on tax compliance and the other part is dedicated to building client relationships so that I can better help our clients with EA’s outsourced CFO function.

What do you do when you aren’t at work?
You would find me watching Netflix, working out, or hanging out with friends/family.

What is something not everybody knows about you?
I am learning Korean.

If you had to apply for a reality TV show what would it be?
Super Trio Game Master.

What would your last meal be?
Pepperoni Pizza.

Cats or dogs?
Dogs!

Gaurav Shrestha

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Growing up I was exposed to the business environment, so I always wondered about the ins and outs of the business, how it runs and how to be financially sound. This piqued my interest on business studies and further after that into accounting. I wanted to broaden my horizons, knowledge and have a sound work life balance which led me to Equil Advisory.

When did you start at Equil Advisory?
17th December 2021.

What do you do at Equil Advisory?
At Equil Advisory, we are exposed a range of work that include tax compliance, bookkeeping, tax advice, liaising with the clients and outsourced CFO functions. My work is predominately occupied by tax compliance and outsourced CFO function.

What do you do when you aren’t at work?
I’m mostly out with my cousins or friends. Binge watching series or may be hop online to play some games.

What is something not everybody knows about you?
I can speak four different languages and I love gaming.

If you had to apply for a reality TV show what would it be?
The Voice.

What would your last meal be?
Mo Mo.

Cats or dogs?
Dogs.

June Wong

Business Services Senior

Email Me Linkedin

How did you end up at Equil Advisory?
My sister got tired of me working from home and hence decided to join EA.

When did you start at Equil Advisory?
Just as the first lockdown was lifted.

What do you do at Equil Advisory?
Eat Coco Pops and telling people what I am honestly thinking.

What do you do when you aren’t at work?
Planning my next EA Team workout session.

What is something not everybody knows about you?
I am scared to sleep alone.

If you had to apply for a reality TV show what would it be?
Survivor – because I wouldn’t last a day.

What would your last meal be?
I can’t decide between all the YUM-MEE animals of the world.

Cats or dogs?
Porcupine.

June Wong

Business Services Senior

Email Me Linkedin

How did you end up at Equil Advisory?
I realised that a lot of people that work in chartered firms are not the happiest. Thus, I was looking for a place where I am happy to go to work every day. I think I found it at Equil.

When did you start at Equil Advisory?
May 2021.

What do you do at Equil Advisory?
Connecting with clients and providing them with all the support they need so they can be at ease and have confidence that they are well looked after.

What do you do when you aren’t at work?
Watching dramas at home while lying on bed.

What is something not everybody knows about you?
I actually thought of becoming an IT person and did a couple of months of IT degree before realising that I am not tech-savvy at all.

If you had to apply for a reality TV show what would it be?
Amazing Race.

What would your last meal be?
Hotpot with lots of veges, mushrooms and tofu!

Cats or dogs?
Neither.

Kupakwashe Doroh

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
Being second fiddle to a Youtube Vlog star wasn’t cutting it.

When did you start at Equil Advisory?
I needed an excuse to not go to the gym.

What do you do at Equil Advisory?
Write short stories and make sense.

What do you do when you aren’t at work?
Personal cashflow using resources from EA.

What is something not everybody knows about you?
My hair feels like your standard carpet.

If you had to apply for a reality TV show what would it be?
House husbands of North Sydney.

What would your last meal be?
Beef or seafood.

Cats or dogs?
Cows.

Kupakwashe Doroh

Business Services Accountant

Email Me Linkedin

How did you end up at Equil Advisory?
I was looking for an opportunity to be able to grow in my accounting career. I have always had a passion for numbers, and I wanted to understand how to translate this technical knowledge into specific solutions for business growth and development. I found Equil Advisory to be a place that would nurture me into a fully-fledged Accountant by providing continuous guidance and support. I am able to learn from experienced professionals providing proactive advice and expertise to clients by creating intimate relationships. Additionally, I also wanted to be part of a diverse team from different backgrounds with different experiences.

When did you start at Equil Advisory?
September 2020.

What do you do at Equil Advisory?
My role at Equil Advisory includes a range of tax compliance work and performing our outsourced CFO function. I have been lucky to be part of the daily operations of clients’ business where we help ensure we are adding value to all aspects of their businesses and providing advice and guidance to help them grow.

What do you do when you aren’t at work?
Play basketball. watching basketball and religiously watching my favourite TV shows with the twitter community.

What is something not everybody knows about you?
I once played Football for my National team.

If you had to apply for a reality TV show what would it be?
Big Brother AU.

What would your last meal be?
Peanut butter rice, coleslaw and chicken stew.

Cats or dogs?
Dogs.