When you’re going out alone for the first time, there’s lots to organise and even more to pay for. While it is not always at the top of an entrepreneur’s To-Do list, ensuring you have the right startup business insurance cover is critical.

It can help protect your new business and its assets if something goes wrong. Without it, you may struggle to recover and remain viable after an accident or incident.

So, what insurance do new enterprises like yours need to start a business? Steadfast Technical Broking Manager Annette O’Brien shares some advice.

Getting the business basics in place

Start-up businesses are often advised to take out public and product liability insurance.

The first covers you for third-party injuries or property damage caused by your negligence. The second can help protect your business if a person or their property is harmed or damaged by a product you’ve manufactured or supplied.

Property insurance is designed to safeguard your assets – think plant and equipment, furniture, ICT devices and the like – against property damage, weather events such as storms, machinery breakdown and theft.

If you intend to hire employees or contractors, you will need to take out workers’ compensation insurance. This insurance will help protect against loss from work-related injuries and illnesses.

And should your employees need to use their own or company vehicles for work related purposes, you’ll likely need a comprehensive motor insurance policy.

While some new business owners baulk at the cost of business insurance, O’Brien says having coverage in place is part and parcel of operating professionally.

“Many insurers offer a business package that incorporates some or all of these common policies – your broker can help you source one that’s competitively priced and compatible with your business needs,” she says.

Seeking specialist cover

Depending on the nature of your enterprise, it may also be wise to take out specialised cover. If you provide professional services or advice, you’ll likely need professional indemnity insurance to help protect against claims related to errors, omissions or negligence.

In today’s world, cyber insurance is fast becoming a must-have, particularly for businesses that handle and store customers’ personal data.

Cyber-attacks and data breaches are now a daily occurrence – the Australian Cyber Security Centre received 94,000 cyber-crime reports in FY2023 – and they can be disruptive and damaging, particularly for organisations that lack the resources to remediate them.

Given the average cost per crime report is now $46,000 for small businesses, most start-ups would fall into that category, O’Brien points out.

“Cyber cover can help you mitigate the costs associated with data breaches and privacy violations,” O’Brien says. “Without it, your new business may struggle to recover from a significant incident.”

Cover to safeguard your new enterprise into the future 

Insurance can help safeguard start-up businesses like yours against unexpected damage, disruption and disaster.

If you need help to determine the type and level of cover that’s right for your new enterprise, contact your AIB broker today.

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

With the evolution and adoption of new technologies, lithium-ion batteries have become ubiquitous in our everyday life both at home and in businesses up and down the country. They power everything from our smartphones and laptops to electric vehicles and energy storage systems. While these batteries have become integral in powering our modern life, they come with their own set of risks, especially for businesses that rely on them. From an insurance perspective they’re seen as an ‘emerging risk’ and we’re hearing more and more news stories about lithium-ion battery risks. In this blog post, we’ll explore what lithium-ion batteries are, how they might be used in a business environment, the regulations surrounding them in Australia, and how businesses can protect themselves from potential risks.

What is a Lithium-Ion Battery?

Lithium-ion batteries are rechargeable energy storage devices known for their high energy density, efficiency and long life span. They’re now the most common battery used in rechargeable devices but come with a range of known risks. This is due to the chemicals used in their production and their internal processes. They work by moving lithium ions between the anode and cathode during charging and discharging cycles and they’re highly flammable.

How Are They Used In A Business Environment?

In the business environment, lithium-ion batteries are prevalent in a variety of applications and devices including, but not limited to:

1. Electronics: Businesses use lithium-ion batteries to power laptops, smartphones, tablets, and other portable electronic devices.
2. Electric Vehicles (EVs): Companies in the transportation sector, including delivery services and logistics, rely on electric vehicles powered by lithium-ion batteries.
3. Energy Storage: Businesses use lithium-ion batteries for backup power solutions and renewable energy storage, enhancing energy efficiency and reliability.
4. Manufacturing and Tools: Power tools and other industrial equipment often use lithium-ion batteries for their high power output and longevity.

Risks of Lithium Ion Batteries

Among the biggest risks posed by lithium-ion batteries is overheating. This can lead to them exploding or causing fires, potentially resulting in property damage or personal injury from smoke inhalation or chemical burns. They can also be particularly difficult to extinguish if they do catch on fire as they can re-ignite and if it is a large battery, possibly burn for days.

Improper handling or damage such as puncturing or exposing the battery to extreme temperatures, can also increase the risk of failure.

According to a report by The Australian Competition and Consumer Commission, product recalls related to lithium batteries affected an estimated 89,000 products between 1 January 2017 and 31 December 2022 and at least one Australian is known to have died as a result of a fire caused by a lithium-ion battery.

Ensuring proper usage, storage and disposal of these batteries is crucial to mitigate these risks in everyday use. It’s also important to make sure you buy your devices, batteries and accessories from a reputable supplier to ensure the highest safety standards have been met when producing the device.

Lithium Ion Battery Storage

Proper storage of lithium-ion batteries is crucial to maintaining their performance and longevity. First, store lithium-ion batteries in a cool, dry place to avoid exposure to extreme temperatures, which can degrade their capacity. Ensure the batteries are charged to around 50% before storage, as this state of charge minimises stress and prolongs battery life. Avoid storing them in areas with high humidity to prevent potential moisture damage. Lastly, keep the batteries away from flammable materials and direct sunlight to reduce the risk of fire hazards.

Lithium Battery Regulations in Australia

One of the complications in Australia is that the different states and territories take varying approaches relating to electrical safety issues.

“The ACCC considers the most significant challenges arising from the current regulatory framework are the lack of uniform state and territory compulsory recall powers and lack of regulatory coverage for extra-low voltage products (which includes a significant proportion of Li-ion battery products).”

As such there is a lack of a consistent, comprehensive regulatory framework to protect Australian consumers and businesses.

Protecting Your Business from Lithium-Ion Battery Risks

If your business uses equipment containing lithium-ion batteries, it’s essential for you to understand what you can do to mitigate the risks. As we’ve highlighted above, proper storage of products and devices containing these batteries is paramount. In addition, we recommend the following:

1. Regular Inspection: Conduct regular inspections of batteries for signs of damage, swelling, or overheating. Replace any damaged or defective batteries immediately.
2. Employee Training: Train employees on the proper handling, charging, and disposal of lithium-ion batteries. Ensure they are aware of the potential hazards and emergency procedures.
3. Safe Charging Practices: Use certified chargers and avoid overcharging or deep discharging batteries. Implement a charging station protocol to prevent overheating.
4. Emergency Preparedness: Equip your facility with appropriate fire suppression systems, such as Class D fire extinguishers, and establish an emergency response plan for battery-related incidents.
5. Compliance with Regulations: Stay up-to-date with Australian regulations and standards related to lithium-ion batteries. Ensure your business complies with all legal requirements.

While most insurers haven’t yet excluded lithium battery fires from their business insurance policies, it’s worth talking to your AIB broker to ensure that you have the right insurance cover in place that’s best suited to your needs and circumstances and offers some protection from lithium-ion battery risks.

Conclusion

While lithium-ion batteries are indispensable for modern business operations, they come with inherent risks that must be managed proactively. By understanding the nature of these batteries, adhering to regulations and implementing safety measures, businesses can protect their assets, employees and the environment. At AIB Insurance, we are committed to helping you navigate these challenges and safeguard your business against potential risks. For more information on how we can support your business, contact us today.

If you have a business, chances are you have insurance cover. Depending on the nature of your enterprise, you may hold property, workers’ compensation, public liability, professional indemnity, business interruption and cyber policies. Then there’s specialty cover for unique items, services and risks. Take Taylor Swift’s legs, for example. The superstar singer hit the headlines in 2015 when it emerged that her prized pins had been insured for an extraordinary $US40 million. Deciding whether to offer cover to a potential client and if so, how much it should cost isn’t always straightforward. That’s why insurance companies employ underwriters. But what is underwriting in insurance?

What Is An Insurance Underwriter?

“It’s their job to take the information that’s been presented from a customer or broker and assess it to determine whether it falls within their target market and meets their insurable guidelines,” explains Chris Quick, Head of Market Management, Steadfast Underwriting Agencies.

We’ll look at what an underwriter does and why it’s important.

Rating the risk

As part of the underwriting process, an underwriter will rate the risk associated with providing the cover that’s being sought, generally against a set of pre-determined criteria.

For example, when assessing an application for property cover on an older building, whether the premises have been rewired is likely to be a consideration, according to Quick.

“Having a customer or their broker explain the details of the risk can enable an underwriter to understand the complexities”

Different construction materials can have different risk ratings applied to them, as can regions and postcodes.

Correctly rating a risk enables an insurer to calculate a competitive premium that is compliant with its target loss ratio – the projected difference between the premiums it receives and the claims it pays out each year.

While a regular underwriter can usually assess most insurance applications that cross their desk, larger and more complex risks may need to be referred up the line. In these cases, it will often go to a senior or specialist underwriter with the authority to approve or decline them.

An insurance underwriter will also conduct a risk review towards the end of each insurance period, considering any changes in conditions and claims that may have been lodged. They’ll then re-rate a client’s risk accordingly.

Delving into the data

Data plays a vital role in the decision-making process. Luckily, these days, underwriters have a wealth of it at their fingertips.

“There are business quoting tools and rating algorithms that save a lot of time and manual work, as well as specialised databases, such as multi-layered flood mapping. These allow underwriters to drill down and obtain detailed information at an individual property level,” Quick says.

“Artificial intelligence is also being deployed to automate administrative aspects of the underwriting process and provide brokers and customers with answers much more quickly than was possible in the past.”

But while that’s a trend that’s set to continue, human intervention will still be required in cases that don’t fit neatly into a template.

“Having a customer or their broker explain the details of the risk can enable an underwriter to understand the complexities and make an informed decision in a way that a computer program, however sophisticated, cannot do,” Quick says. “Even in today’s times, it’s a massively important role.”

Insurance cover to safeguard your business

Having the right insurance in place can help protect your small business from a range of accidents and incidents.  A broker can help you make smarter decisions about the types of cover best suited to your needs and liaise with insurance underwriters on your behalf if your circumstances are complex or unique.

For a discussion about your requirements, contact your AIB Insurance broker today.

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.

Winter in Australia can bring its own set of challenges when it comes to unpredictable weather. While the cooler months can mean severe storms are less frequent and less severe, they do still occur. There are some simple seasonal tasks that can help protect your home and business and avoid potential insurance claims. Here are some practical tips from the AIB Claims team to prepare for winter and safeguard your property during the colder months.

1. Inspect and Maintain Your Roof

Your roof is your first line of defence against winter weather. Regularly check for damaged or missing tiles, shingles or metal sheets. Ensure gutters and downpipes are clear of debris to prevent water buildup and leaks. It’s also wise to inspect attic insulation to avoid heat loss and condensation issues.

2. Service Heating Systems

Properly maintained heating systems are crucial for keeping your home or business warm and safe. Schedule regular maintenance for your heaters and chimneys to ensure they are working efficiently and safely. This also helps in preventing potential fire hazards caused by faulty heating equipment.

3. Secure Fences, Windows and Doors

Strong winds can cause significant damage to fences, windows and doors. Now is a great time to inspect them and ensure they are in good condition and properly sealed. Install storm shutters or use protective films to reduce the risk of glass breakage. Regularly check for any drafts and fix them to keep the cold air out and the warm air in.

4. Trim Trees and Remove Debris

Overgrown trees and loose branches can pose a significant threat during winter storms. Trim trees and remove any dead or weak branches that could fall and cause damage. Clear your yard of loose items that could become projectiles in strong winds, reducing the risk of damage to your property and surrounding areas.

5. Check Your Insurance Coverage

Review your home and business insurance policies to ensure you have adequate coverage for winter-related incidents. Understand what is covered under your policy and consider adding additional coverage if necessary. Knowing your coverage limits can provide peace of mind and help you prepare for potential claims.

6. Emergency Preparedness Plan

Create an emergency preparedness plan for your home or business. This should include emergency contact numbers, evacuation routes and a checklist of essential items. Ensure all family members or employees are familiar with the plan and conduct regular drills to stay prepared.

By taking these preventive measures, you can protect your home and business from potential winter damage and reduce the likelihood of insurance claims. At AIB, we’re here to help you stay safe and secure throughout the winter months. If you have any questions about your coverage or need assistance, don’t hesitate to contact us.

For more information and personalised advice, contact the AIB team for a quote or call us at 07 5409 4600

If you own a small business, chances are you’ll need a range of different insurance policies to help protect your operations, assets and employees.

However, determining the type and level of cover appropriate for your needs isn’t always a straightforward process – and getting it wrong could cost a lot.

That’s why it pays to work with a specialist small business insurance broker whose job is to ensure you have the right cover for your needs. Here’s how they can help you get the most out of your insurance investment.

Benefits of Working With A Small Business Insurance Broker

Tailoring your coverage

No two businesses are the same, and that means their insurance needs aren’t the same either.

Also no two insurers are the same, and that means their insurance policies aren’t the same either.

A good small business insurance broker will spend time getting to know you and your business, including the risks and vulnerabilities that need to be covered. Armed with that knowledge, they’ll design and source policies that are right for your risk profile.

As a result, you can have an appropriate level of cover for your specific circumstances.

Making sure your sums insured are accurate

Your sum insured is the maximum amount your insurer will pay out on each of your policies should you make a claim. To determine what those figures should be, you’ll need to calculate your potential losses for a range of events, such as natural disasters, business interruption and theft.

Overestimating what your losses would be can result in your paying unnecessarily high premiums, while underestimating can mean you’re significantly out-of-pocket in the event of an incident. An experienced broker can help you strike the right balance.

Understanding the options

It pays to shop around, but if you’re a busy business owner, there may be a dozen more urgent tasks on your ‘To-do’ list. Sticking with the status quo can feel easier than spending hours on the phone researching the alternatives.

Or you could allow your broker to do that leg work for you, contacting insurers to explore the options and recommending the policies that represent the best value for money.

Assisting with claims

Making an insurance claim is often time-consuming and stressful, but a broker can assume some of the burden on your behalf. It’s their job to support you through the process, liaising with your insurer and acting as your advocate.

Having an expert in your corner can result in smoother and speedier claim settlements, allowing you to get on with running your business.

Providing ongoing support

Ideally, your relationship with your broker will become a long-term one, so your broker can provide ongoing assistance with policy adjustments and renewals as well as risk management advice to help you safeguard your operations and assets.

Cover when it counts

Having appropriate insurance in place can help protect your business in the event of adverse incidents.

A small business insurance broker can help you determine what type and level of cover best suits your circumstances and advocate for you in the event of a claim.

Contact your AIB small business insurance specialist today if you’d like to talk to a specialist about your requirements.

Important notice

All information in this article is of a general nature only and does not take into account your specific objectives, financial situation or needs. Deductibles, exclusions and limits apply to insurance.

Steadfast Group Ltd ACN 073 659 677

Important notice – Steadfast Group Limited ABN 98 073 659 677

This general information 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 this business interruption insurance is appropriate for you. Deductibles, exclusions and limits apply. This insurance is issued by various insurers and can differ. You should consider the relevant Product Disclosure Statement and any Target Market Determination in deciding whether to buy or renew this type of insurance.