More than half (53.3%) of all Australian small businesses expect to grow in 2024, according to research released by accounting body CPA Australia. This is great news for the many dynamic entrepreneurs running these exciting ventures.

As your business grows and evolves, so could your insurance needs. Expanding your business, whether by increasing the scope of your operations, hiring more employees or opening a new location, may require careful consideration of your insurance coverage.

Ensuring you have the right insurance policies in place is crucial, even for home businesses, to help protect your growing investment and mitigating potential risks.

1. Review current policies

The first step in ensuring adequate coverage when your business is growing is to review your existing insurance policies.

The idea is to look into your current general liability, property and business interruption insurance policies to determine if they still meet your business’s needs. Expansion can often increase exposure to risks, so your existing coverage limits may no longer be sufficient.

2. Identify new risks

Growing your enterprise could introduce new risks your current policies may not cover. For example, opening a new location may expose you to different environmental hazards, customer demographics or regulatory requirements. Identifying these new risks would help you to work out the extra cover you need to protect your business.

3. Update your insurance

As your business expands, it’s often crucial to fortify it with the right insurance policies.

• General public and product liability insurance can help shield you against the cost of third-party claims of bodily injury or property damage, helping to protect your business financially from potential lawsuits.
• With growth often comes the acquisition of new assets, making commercial property insurance vital to help safeguard your buildings, equipment and inventory from perils like fire, theft, and natural disasters.
• Don’t forget business interruption insurance, which can be a financial lifeline during any unforeseen events which may halt your operations.
• As your workforce grows, you will also need to ensure your workers’ compensation insurance is still adequate, providing essential benefits to employees injured on the job and to help shield your business from the cost of legal actions.
• In the digital age, cyber insurance is a must-have, to help guard your business against the cost of cyberattacks and data breaches that could compromise sensitive information and customer trust.

What’s important is to tailor your insurance strategy to your expanding business needs, so you can navigate your growth journey with confidence.

Tips for managing insurance during expansion

It’s easy to let your insurance requirements fall down your to-do list when you’re expanding. But this can increase your business risks at a time when you need to be working on the business rather than managing a claim.

As your business continues to grow, regularly reviewing and updating your insurance policies is essential. So make it a priority to do a yearly insurance audit to assess your coverage needs and make adjustments to your policies as necessary.

An experienced insurance broker can give you valuable guidance as you navigate the complexities of expanding your business, helping you to identify coverage gaps, recommend appropriate policies and negotiate competitive rates.

Talk to an AIB insurance broker today to ensure you have a comprehensive insurance strategy that aligns with your business goals.

Important notice

This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.

Steadfast Group Ltd ACN 073 659 677

Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.

You may be paying for insurance, but if you’re underinsured, you could be taking a big risk.

In the case of a disaster, you might have to pay the balance between the amount insured and the actual costs. For example, if the cost of replacing your building and contents is $4 million but they are insured for $3 million. In this scenario, if the building were destroyed by fire, you could be $1 million out of pocket.

Even if the cost to repair the damage is less than $3 million, your claim may not be fully reimbursed.

“Many insurance policies include a co-insurance clause,” says Michael White, Broker Technical Manager for Steadfast Group.

“This is triggered if you’re insured for less than the full value of the property. In very broad terms, it reduces the amount of the claim by the percentage by which you’re underinsured.”

So, with the example above, if the damage amounts to $2 million, you may not be reimbursed for the full cost of repairs.

How to find out whether you’re underinsured

To find out whether you have adequate cover, you can check your policy limit, which is the amount you’re covered for.

You can then compare this with the replacement cost of your building or other asset.

The Insurance Council of Australia provides free online calculators that may give you an idea of the replacement value of your property.

“These are just a guide, particularly if your building has any unusual features. A valuer will provide a much more accurate assessment of the value of your building and any other assets such as machinery covered by your policy,” White says.

You can also use AIB’s free online insurance quiz to see if you need to update your policy and we offer a free policy review tool too.

What can you do if you think you’re underinsured?

Your AIB insurance broker can help you to identify everything your business depends on to operate and assist you to find the most appropriate cover.

“Every business is different, and your insurance should be tailored to your needs,” says White. “You need to be sure you’re not left vulnerable in certain areas or paying for cover you don’t need.”

Once you’re fully covered it’s often vital you review your insurance every year.

“Your business is evolving, and replacement costs are changing all the time,” says White. “For instance, a piece of machinery you bought four or five years ago might cost a lot more to replace than you paid, and your insurance needs to reflect that.”

Essential insurance protection

Many small businesses are underinsured by accident. You may have misunderstood what’s needed, miscalculated the value of your assets, or underestimated how much your business has grown.

Or perhaps you’ve simply been so busy that checking your insurance cover slipped down your list of priorities.

It’s understandable, but it could also be disastrous if you don’t realise you’re underinsured until you make a claim.

The risk is you could lose everything you’ve worked so hard for, including your business. For peace of mind, talk to your AIB broker about the best way to ensure you are not underinsured.

 

Important notice

This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.

Steadfast Group Ltd ACN 073 659 677

Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.

When you’re working in the gig economy you have the flexibility to choose the days and hours you work. There’s also a wide range of jobs on offer, from driving for a rideshare service, delivering food or providing household services, to working from home as a freelance consultant. But gig economy insurance protection is still a vital consideration.

“Some people work a few hours a week to earn extra cash while, for others, it’s their full-time occupation,” says Michael White, Broker Technical Manager at Steadfast Group. “Either way, as you’re self-employed, you’ll probably be responsible for most or all of your insurance cover.”

For your own safety, it’s vital that you understand the risks you face and make sure you have the right protection. Here’s some key points you should know to help you reduce your financial risk.

What gig economy insurance do you need?

These are the types of cover most likely to apply to you as a gig worker. The ones you need will depend on the type of work you do.

Public liability insurance can cover the financial cost of damage or harm you do to a person or someone else’s property.

“If you’re a cleaner, for example, you might break a valuable vase or, worst case scenario, accidentally set the house on fire,” says White.

Professional indemnity insurance is often important if you’re paid for advice. You could be open to a claim of negligence if a client believes that following your advice financially damaged their business.

Vehicle insurance can pay out if the vehicle you use for work is damaged or involved in an accident. When the gig economy was still relatively new, regular car insurance policies didn’t provide cover for the driving you did for business. However, many providers now include, or give you the option of adding, this level of protection – your product disclosure statement will have details.

Tools of trade insurance can help you to replace tools, equipment, and other business-related property if it’s damaged, lost or stolen.

Business interruption insurance may cover loss of turnover as a result of physical damage to the building from which you operate, as well as other specified events.

Workers’ compensation can help support workers who are injured at work. All employers must have workers’ compensation insurance for their workers but, as a gig worker, you may be classed as an independent contractor rather than an employee. Ask you your platform owner where you stand in regard to eligibility for status as an employee.

Look for specialised insurance

Insurers are starting to recognise the importance of the gig economy and we’re seeing more products tailored to its needs. Remember that, even in specialised areas, the cost, coverage and exclusions can vary widely. Compare quotes from a number of reputable insurance companies which have good customer reviews and a strong financial rating before you decide.

If you’re not sure, get help.

Insurance can be confusing. As a gig worker, you have a lot to think about when you’re looking for protection you can afford.

Your AIB insurance broker can recommend the right policies for peace of mind and financial security.

 

Important notice

This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.

Steadfast Group Ltd ACN 073 659 677

Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.

Childcare centres play a crucial role in the early development of children, providing a safe and nurturing environment where they can grow and learn. However, ensuring the safety of children extends beyond physical care; it also includes protecting them from potential sexual abuse.

From a childcare insurance perspective, safeguarding against sexual abuse is a critical concern that requires a proactive and comprehensive approach. By implementing robust safeguarding measures, childcare centres not only protect the children in their care but also minimise potential liabilities and strengthen their position with insurers.

This guide aims to provide childcare centres with comprehensive strategies to safeguard children, ensuring their well-being and the trust of their families.

Understanding the Importance of Safeguarding

Sexual abuse in childcare settings, although rare, is a grave concern that can have lasting impacts on children, and even family members. It is vital for childcare centres to implement robust safeguarding measures to prevent such incidents. These measures not only protect children but also uphold the integrity and reputation of the childcare centre.

From an insurance perspective, safeguarding against sexual abuse in childcare centres involves a collaborative effort between the insurer, insurance broker and the childcare providers. We offer guidance, resources, and risk assessment tools to help centres implement effective safeguarding practices. Our shared objective is to create a secure environment where children can thrive, and childcare centres can operate with confidence.

Key Components of Safeguarding Against Sexual Abuse

1. Robust Recruitment Processes

   • Formal Interviews: Undertake formal interviews for all candidates, including volunteers and contractors, for positions involving work with children or vulnerable adults. Analyse past experience working with these groups.
   • Background Checks: Facilitate access to comprehensive background check services, including criminal record checks and working with children checks, to ensure all staff and volunteers are thoroughly vetted.
   • References: Verify references and previous employment by enquiring with at least two previous employers regarding the candidate’s suitability for the position. Contact at least two referees supplied by the candidate.
   • Employment Prohibition: Prohibit the employment or engagement of any person from working in your organisation if they have prior convictions relating to violent or sexually related offenses.

2. Comprehensive Training

   • Regular Training Sessions: Provide regular training on safeguarding policies, recognising signs of abuse, and appropriate responses.
   • Specialised Workshops: Offer specialised workshops led by experts in child protection and legal responsibilities.
   • Continuous Professional Development: Encourage continuous learning and staying updated with the latest safeguarding practices and regulations.

3. Clear Policies and Procedures

   • Safeguarding Policy: Develop and implement a clear safeguarding policy outlining the centre’s commitment to child protection, aligning with industry standards and legal requirements. Posting this policy on the centre’s website can help demonstrate to parents your commitment to child safety and transparency.
   • Code of Conduct: Establish a code of conduct for all staff and volunteers, detailing appropriate behaviour and boundaries. Define boundaries for interactions between staff and children to prevent inappropriate behaviour, such as tickling, cuddling, and sitting on laps, which can be considered grooming for sexual abuse.
   • Reporting Mechanisms: Create transparent and accessible reporting mechanisms for children, parents, and staff to report concerns. Actively encourage the reporting of sexual abuse and ensure that concerns are not dismissed when raised.

4. Creating a Safe Environment

   • Design and Layout: Ensure the physical environment is designed to promote visibility and reduce opportunities for isolated interactions.
   • Supervision: Maintain appropriate staff-to-child ratios and ensure constant supervision of children.
   • Open Communication: Foster an environment where children feel safe to express their concerns and parents feel confident to discuss their child’s welfare. Commit to being an environment where either a victim or employee/volunteer feels able to report sexual abuse.

5. Engaging Parents and the Community

   • Parental Involvement: Encourage parents to be involved in the centre’s activities and stay informed about safeguarding policies.
   • Community Awareness: Raise awareness within the community about the centre’s safeguarding measures and the importance of child protection.
   • Partnerships: Collaborate with local authorities, child protection agencies, and other childcare centres to share best practices and resources.

6. Monitoring and Evaluation

   • Regular Audits: Conduct regular audits of safeguarding practices to ensure they are effective and up to date.
   • Feedback Mechanisms: Implement feedback mechanisms for parents, staff, and children to provide input on safeguarding practices.
   • Incident Reviews: Review any safeguarding incidents thoroughly to learn and improve future practices.

Developing a Comprehensive Client Protection Policy (CPP)

An effective Client Protection Policy (CPP) is essential for any childcare centre to safeguard against sexual abuse. This policy should include critical risk controls and reference the 10 National Principles for Child Safe Organisations. Key components of the CPP should include:

1. Leadership & Governance

   • Commitment from Top Management: Ensure the centre’s leadership is committed to child protection and actively promotes a culture of safety.
   • Clear Governance Structures: Establish clear governance structures and accountability mechanisms for safeguarding.

2. Effective Policies and Procedures

   • Comprehensive Safeguarding Policy: Develop a detailed safeguarding policy that aligns with legal requirements and best practices.
   • Operational Procedures: Implement procedures for daily operations that minimise risk and ensure child safety.

3. Recruitment and Training

   • Vetting and Hiring: Implement rigorous vetting processes for all staff and volunteers, including background checks and reference verification.
   • Ongoing Training: Provide continuous training for all staff on safeguarding practices and recognising signs of abuse, with relevant formal training and refresher courses held at least once a year.

4. Code of Conduct

   • Behavioural Standards: Establish a clear code of conduct that outlines acceptable and unacceptable behaviour.
   • Boundary Guidelines: Define boundaries for interactions between staff and children to prevent inappropriate behaviour, such as tickling, cuddling, and sitting on laps, which can be considered grooming for sexual abuse.

5. Incident Reporting and Response

   • Reporting Mechanisms: Create transparent and accessible reporting mechanisms for any concerns or incidents.
   • Response Procedures: Develop clear procedures for responding to allegations of abuse, including support for affected children and families.
   • Independent Investigation: Appoint an independent person to investigate any incident of suspected sexual abuse.
   • Documented Reporting Process: Establish a documented reporting process with escalating procedures. If an employee is under investigation (internally or by the police) for committing sexual abuse, it is crucial to consult with an HR lawyer or legal counsel to determine appropriate actions, which may include suspension or termination based on the investigation’s findings and legal advice.
   • Policy for Reporting Suspicion: Implement a policy for employees and volunteers to report reasonable suspicion of sexual abuse to the senior management of your organisation, and ensure that police authorities, your insurance broker and insurer are notified.
   • Confidentiality Assurance: Assure that the details of those reporting sexual abuse will be kept private and confidential.

6. Ongoing Review and Best Practice

   • Annual Policy Review: Conduct an ongoing review of the CPP at least once a year to maintain current best practices in safeguarding procedures and observe any changes to legislation.
   • Documentation Retention: Ensure secure retention of all personnel employment, incident, and investigation reports, liability insurance policies, and other relevant incident-related correspondence. Adhere to the current privacy legislation regarding documents containing personal data.

7. Reference to the 10 National Principles for Child Safe Organisations

   • Embedding the Principles: Ensure the CPP aligns with the 10 National Principles for Child Safe Organisations, which provide a framework for creating a child-safe culture.
   • Continuous Improvement: Regularly review and update the CPP to incorporate the latest guidance and best practices from the National Principles.

Protecting Vulnerable Individuals

Implementing a robust Client Protection Policy with the above features is essential for:

• Protecting Those in Your Care: Ensuring the safety and well-being of children in the centre.
• Maintaining the Integrity of the Organisation: Building trust with families and the community through transparent and responsible practices.
• Avoiding Damaging Allegations: Reducing the risk of allegations that can lead to litigation, which can have profound effects on all involved.
• Supporting Risk Management Programs: Fulfilling the obligation to take reasonable and appropriate measures to protect all persons in your care and employment, and meet specific conditions outlined in liability insurance agreements.

Responding to Suspected Abuse: Guidance

In the unfortunate event of suspected abuse, it is crucial to act swiftly and appropriately. Your insurance broker and the insurer can provide guidance and support throughout the process:

• Listen: Take any disclosure seriously, listen without judgment, and provide reassurance to the child.
• Report: Follow the centre’s reporting procedures immediately, ensuring the concern is reported to the designated safeguarding lead.
• Document: Record all details of the concern and the steps taken, maintaining confidentiality.
• Support: Provide support to the child and family, ensuring they have access to professional help if needed.

Conclusion

From an insurance perspective, safeguarding against sexual abuse in childcare centres is an essential aspect of risk management. By working together with childcare providers, we can create a safe and nurturing environment that protects children, supports families, and upholds the reputation of childcare centres. Through comprehensive safeguarding measures, continuous education, and collaborative efforts, we can ensure the well-being of the youngest and most vulnerable members of our society.

Together, we can build a future where every child is protected and cherished, and every childcare centre operates with confidence and security.

For further assistance and to learn more about how we can support your childcare centre in safeguarding efforts, please contact our childcare insurance team.

 

References:

1. AIB/Ansvar Sexual Abuse Insurance Supplementary Questionnaire
2. Australian Government Department of Education, Skills, and Employment. (2022). National Principles for Child Safe Organisations.
3. Australian Institute of Family Studies. (2021). Child Safe Organisations: Information for organisations.
4. Working with Children Checks. (2022). https://www.workingwithchildren.vic.gov.au/)
5. National Association for the Education of Young Children (NAEYC). (2020). Guidelines for Child Care Providers.

It’s not if but when a business will experience a cyber breach. Which means it’s vital to be prepared before one happens. The first step for a small business experiencing a cyber breach is to enact its cyber security incident response plan.

“If a cyber breach happens, don’t touch anything, call for help,” says Steadfast Technologies’ Chief Information Security Officer, Alexander Moskvin.

“Engage professionals at the first sign the system has been compromised. They will be able to triage the situation and provide advice about the nature of the event,” he adds.

Having a relationship with cyber security experts in advance is vital so you can act immediately when a cyber breach occurs. The right level of service for your business will depend on its nature and budget.

Some businesses need access to 24/7 support. That support includes businesses for whom not being able to access their data for a period will have a significant revenue impact.

For instance, let’s say a restaurant is the subject of a ransomware attack on a Friday and cannot operate over the weekend. Around-the-clock cyber security support may be essential so it can trade during the busy weekend period.

Other businesses may only require cyber security support during business hours.

Cyber security incident response plans for small business

The federal government has published a guide detailing the steps to follow when a cyber breach occurs. This is a good place to start designing your incident response plan. While the government’s guide may be too comprehensive for most small businesses, it contains many of the essential elements every plan should include.

“A one-page plan will be sufficient for most small businesses,” says Moskvin.

Most plans should include service provider contact numbers to call when a breach occurs.

“If you have cyber insurance, you need to notify your insurance company,” says Moskvin.

It may be appropriate for your plan to also include a protocol for notifying people in the business and under what circumstances.

For instance, as a business owner, you may require immediate notification if the breach involves your customers’ personal data. But you may not necessarily require notification simply if a virus is detected and it has not yet entered the system.

It’s also often essential to outline the method of communication for different breaches. In the example above, the plan may state you should be notified by phone if customers’ personal data is involved in the breach.

But if a virus is detected, email or SMS notification may suffice.

“It’s up to the company to work through a range of different scenarios and what constitutes a high-risk and low-risk notification to senior management. A traffic light system where different scenarios are classified red, amber and green can help,” says Moskvin.

Steps to follow after a cyber breach

During a cyber security event, it’s vital to keep to the guidance of your cyber security experts.

“Often what happens is users click on a message or pop-up window that says the company’s information has been encrypted and clicking a link will reveal instructions to get access to the data. But this may be just a threat and the system won’t yet be infected. It’s only when the link in the message is clicked that the system will be infected,” advises Moskvin.

If a compromise is confirmed, it may be necessary to notify affected individuals or companies or the Privacy Commissioner.

While cyber insurance may be essential, it should only be considered a last line of defence.

Small businesses must have cyber security incident response plan and know who to contact in the event of a cyber breach to help reduce any damage and get back on their feet as soon as possible.

 

Important notice

This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.

Steadfast Group Ltd ACN 073 659 677

Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.