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In its simplest terms, reinsurance is insurance for insurance companies. Unfortunately, global reinsurance is impacting businesses of all sizes following an increase in catastrophic events across Australia.

Insurers paid out $36.5 billion in claims in 2022 alone, according to the Insurance Council of Australia.

There were more than 300,000 disaster – related claims lodged from four declared insurance events across the country, costing more than $7 billion in insured losses.

There has also been an increase in costs for repairing properties coupled with rising claims costs and inflation.

Now the cost of reinsurance is climbing too. The rising costs have even seen some global reinsurance pull out of covering some insurers’ environmental risks.

It means some insurers have taken on the risk themselves instead of paying higher reinsurance costs.

So how can rising reinsurance have an impact on your business?

WHAT CAN RISING REINSURANCE MEAN FOR YOUR BUSINESS?

Here are some likely effects of the global reinsurance landscape on your business.

Higher premiums

As reinsurance becomes more expensive and difficult to get, insurers may have to increase premiums for their policies.

Unfortunately, many businesses may face increased premiums as a result.

More information required

Insurers can ask for more information about a business’ risks and plans during renewal and when a claim is lodged.

You may be asked more questions and spend more time reviewing the coverage they will offer. These questions and requirements may feel daunting when you’re time-poor, but you still want to ensure you have the right cover without breaking the bank.

Cover restrictions

Insurers may impose coverage restrictions or even larger exclusions. Some insurers may even decline to reinsure a business if they feel the risks are too great in this present climate.

These impacts may make it more difficult to decide how and who insures them and the cost of ensuring they’re properly covered if a disaster strikes.

HOW CAN YOU MAKE SURE YOU HAVE THE RIGHT INSURANCE COVER?

An AIB insurance broker can provide expert advice and ensure you get the right cover for your business needs.

Experienced brokers have strong relationships with various insurers and can help businesses get the right cover at the right price.

Their advice means you don’t have to guess what will work with you and hope for the best.

Brokers can also help review a business’ existing policies and procedures and suggest ways to potentially reduce your insurance costs. This could include adjusting a business’ claims excess or suggesting ways to reduce risk, which insurers can look at more favourably.

If you have to make a claim, brokers can also help you with the claims process, which can be difficult to navigate. This help is especially important following a major disaster when insurers are inundated with claims and outcomes may take longer.

A disaster can be one of the most stressful events you go through as a business owner and a good broker can help ease that.

SPEAK WITH AN AIB BROKER TODAY

Reducing your insurance costs with rising costs can be tempting, but it’s a trap you should avoid.

It’s a more important time than ever to focus on the right protection. Speak with a broker today about your needs and whether you have the right cover.

Important notice

All information in this article is of a general nature only. This information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete.

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.

Storm season is upon us so it’s a timely reminder to check that your insurance cover is up to date and to take some simple steps to keep your home and business premises safe and minimise the risk of damage as much as possible.

Here are some tips to make sure you’re prepared:

Prepare your home and business premises before storms:

Maintain your yard, balcony and areas surrounding the building.
Clean your gutters, downpipes and drains.
Trim trees and branches.
Keep your roof in good condition.

Prepare an emergency kit with these suggested items:

a portable battery operated radio and torch with fresh or spare batteries and bulb
a list of local radio stations for emergency information
candles with waterproof matches or a gas lantern
reasonable stocks of fresh water and tinned or dried food
a first aid kit and basic first aid knowledge
good supplies of essential medication
strong shoes and rubber gloves
a waterproof bag for clothing and valuables – put valuables and certificates in the bag and put the bag in a safe place
a list of your emergency contact numbers
a car charger for your mobile phone

IT’S IMPORTANT AFTER A STORM TO:

check your house and business premises for damage
stay away from fallen powerlines. Report all fallen powerlines to Energex on 13 19 62
beware of damaged buildings, trees and flooded watercourses
be available to help neighbours if required.

To report power interruptions, phone Energex on 13 62 62.

Give us a call on 07 5409 4600 to speak with one of our expert team and make sure your policies are up to date and you’re adequately covered.

All the data points to a hotter than-average summer, which means Aussie businesses should prepare for extreme weather during the warmer months.

Here are some steps you can take to help prepare your small business, in case droughts and floods affect your area.

The Australian Actuaries Climate Index (AACI) indicate conditions are ripe for a destructive bushfire season across Australia this summer, following a dry winter and a rise in extreme temperatures.

According to the index, the frequency of extreme high temperatures was above average in northern and eastern parts of the country in autumn, but lower than average in the south and west.

Rade Musulin, lead collator of the Australian Actuaries Climate Index, says with Australia’s transition to an El Niño alert phase in late May, there is a strong likelihood rainfall will continue to decline and a significant dry period may begin.

“More dry weather, along with the record amounts of vegetation growth from three years of consistent wet weather, means the conditions are primed for potentially high bushfire risk in the summers ahead,” he said.

The Bureau of Meteorology currently estimates there’s a 70 per cent chance of an El Niño system developing. This weather pattern is synonymous with low rainfall and bushfires.

PREPARE YOUR BUSINESS FOR BUSHFIRE SEASON

While El Niño events, bushfires and drought are tough conditions for small businesses to manage, there are steps you can take to mitigate these risks.

1. DEVELOP A COMPREHENSIVE EMERGENCY PLAN

Create a detailed emergency plan tailored to the threat of bushfires and floods. This plan should outline evacuation procedures, communication protocols, designated assembly points and responsibilities for each employee during an emergency.

2. MAKE SURE YOUR INSURANCE COVER IS UP TO DATE

Review your current business insurance policies to ensure they provide adequate coverage for potential damages caused by El Niño-induced events. Speak with an insurance broker, who can discuss your options and the best cover for your specific business needs.

3. CREATE OFF-SITE DATA BACKUP AND STORAGE

Protect crucial business data and documents by regularly backing them up and storing them off-site or on secure cloud-based platforms. This will minimise the risk of data loss during extreme weather events.

4. TRAIN STAFF TO RESPOND TO EMERGENCY SITUATIONS

Hold regular training sessions to educate employees about the emergency plan and the steps they should take during bushfires or floods.

5. MAINTAIN LANDSCAPING AND CLEAR SURROUNDINGS

Regularly maintain any garden around your business premises, trim trees and remove dry foliage. Similarly, ensure proper drainage to prevent flooding.

6. CHECK YOUR COMMUNICATION CHANNELS

Make sure you have access to multiple communication channels to stay up to date on weather and evacuation orders. Use social media, emergency alert systems and reliable news sources so you know what’s happening, as it happens.

7. DEVELOP A BUSINESS CONTINUITY PLAN

Create a business continuity plan that outlines the steps to follow to resume operations after a disaster. This plan should address immediate recovery needs, temporary business relocation and any potential supply chain disruptions.

8. DO REGULAR DRILLS

Organise periodic drills to test the effectiveness of your emergency plan. Identify areas for improvement and make necessary adjustments based on the outcomes of these exercises.

PREPARING FOR A DRY SUMMER

El Niño-induced bushfires and floods can pose significant challenges to small businesses.

But with careful preparation and planning, businesses can increase their chances of minimising losses and bouncing back after a disaster. The key lies in being proactive rather than reactive when it comes to disaster preparedness.

Important notice

All information in this article is of a general nature only. This information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete. Information is subject to change.

Steadfast Group Ltd ACN 073 659 677

Starting a small business is an exciting adventure that requires careful planning and organisation. There are several essential steps to take, from registering for an Australian Business Number (ABN) to setting up financial systems and securing insurance.

REGISTERING YOUR SMALL BUSINESS AND GETTING AN ABN

The first step is to decide which business structure is right for you, with options including setting up a company or partnership, or being a sole trader.

The right choice will depend on the type of business you operate, its size, how you wish to pay tax, and how you want to protect your assets.

An accountant can help you decide on the right option for you.

Then, you need to apply for an ABN. This is a unique 11-digit number that identifies your business.

You will need to include this number on tax invoices and other documents.

TAX TIME ESSENTIALS

It’s vital to understand your tax obligations as a small business owner.

You will need to register for Goods and Services Tax (GST) if your business earns more than $75,000 a year.

This is a broad-based 10 per cent consumption tax. If your business collects GST, you may need to pass this money back to the government, offset by any GST you pay.

You may also need to pay income tax and payroll tax, and your accountant can help you set up systems for this.

You must also understand the Australian Taxation Office’s (ATO) rules and keep accurate records of your income, expenses and tax deductions.

WRITE A BUSINESS PLAN

A well-thought-out business plan serves as a roadmap for success. It outlines your goals, target markets, products and services, marketing strategies and financial projections.

Start by conducting market research to understand your industry, competitors and potential customers. Identify your unique selling proposition (USP) and create a marketing plan to reach your target audience.

A business plan helps you stay focused and is an important requirement if you want bank finance or external funding.

SETTING UP FINANCIAL SYSTEMS

Effective financial management is crucial for the success of any small business.

You will likely need to open a business bank account to separate personal and business finances. Accounting software such as MYOB, QuickBooks or Xero may be a useful software to help track income and expenses and generate financial reports.

Implement a bookkeeping system to maintain accurate records, including invoices, receipts and payroll information.

This will simplify tax reporting and enable you to monitor the financial health of your business.

GETTING THE RIGHT INSURANCE

Protecting your business against potential risks is also vital.

Consider the specific needs of your industry and determine the appropriate insurance cover. Your insurance needs will differ if you’re an ecommerce business vs if you’re a tradie or operating a childcare centre.

Many small businesses will need public liability insurance and workers’ compensation insurance plus professional indemnity insurance if you give advice.

Rather than trying to guess what’s right for you, it’s a good idea to ask a broker to assess your requirements and find suitable policies that safeguard your business and assets.

SET UP FOR SUCCESS

When you have the fundamentals in place, it’s time to focus on revenue-generating activities.

Chris Loverseed is the founder of Positive K9 Training, a consultancy firm that helps people scale up their pet-based businesses. He says when you’re starting out, it’s important to recognise your time and energy are precious commodities.

“So they are best channelled into activities that drive your business forward and generate revenue,” Chris says.

Chris recommends you start by understanding your market.

“Find out who your customers are, what they need and their pain points. Then, you can tailor your product and messaging. It’s all about finding the perfect fit between what you offer and what your customers are looking for.”

At the start, Chris suggests taking the opportunity to build a community around the business. Social media channels can be a useful source for this.

“This goes beyond just making sales. It’s about creating a group of loyal customers who love your product, believe in your brand and will advocate for you. A strong community can be your most powerful marketing tool.”

The next step is to develop your marketing strategy, Chris says.

“This is how you get the word out about your business. Whether it’s through social media, email campaigns or traditional advertising, effective marketing is all about reaching the right people with the right message at the right time.”

DO YOU HAVE THE RIGHT COVER?

Starting a small business in Australia requires careful planning and adherence to legal requirements. A small business insurance broker can help ensure you get the right insurance cover for your new business.

For any small business insurance needs, speak to your AIB insurance broker to understand the products that are right for you.

Important notice

Steadfast Group Ltd ACN 073 659 677

Business insurance can look complicated but once you understand the basics, you’ll find it much easier to talk to your broker about your needs.

Here are five things it can help for you to know.

YOUR COVER SHOULD BE TAILORED FOR YOU

Business insurance can help protect a number of things including your company assets, customers, employees, and your business earnings.
It may also include public liability insurance to provide protection against claims relating to injuries or damage to property.

Business insurance can be flexible. For example, a sole trader working from home is likely to have different requirements from someone running a restaurant, a building company or even a yoga studio, and so it can be tailored to suit a variety of different business needs.

This can also mean bundling different types of policies together to simplify the process – and a bundle may also cost less than purchasing the policies separately.

WHAT’S THE DIFFERENCE BETWEEN MANDATORY AND OPTIONAL INSURANCE?

Some elements of business insurance are required by law. For example, if you have employees, you must have workers’ compensation insurance. Public liability insurance is also compulsory for some companies.

Depending on your business requirements, you can add others to suit your own preferences such as income protection, disability insurance, or cover for your premises, vehicles or equipment.

SCOPE OF COVER

Whether bought together or separately, each policy will set out exactly what it covers, any conditions you must adhere to and any exclusions.

For example, conditions could include installing automatic fire extinguishers or agreeing to switch on burglar alarms whenever the business premises are unoccupied. An exclusion eliminates coverage for certain types of risks – for example, damage that occurred because you failed to maintain the premises.

IDENTIFYING YOUR RISK

Business insurance has lots of options and every business has different exposures – so how can you be sure you’re covering the right risks?

Steadfast network brokers use a tool that can identify your exposure based on claims by other businesses in your sector. From there, they can help to fine-tune your risk profile by understanding the way you do business and the mitigations you have in place.

So, get in touch with one of our brokers, who can also help you to decide on the amount you should insure by discussing details such as replacement costs, especially when it comes to buildings and equipment.

These may appreciate over time due to inflation and rising costs as new models are made available. The exception is stock, which can be covered for its value rather than for its replacement cost.

DO YOU HAVE THE RIGHT COVER?

Getting it right means finding the right cover for the best price. For peace of mind, contact your AIB broker today to discuss your business insurance needs.

Important notice – Steadfast Group Ltd ACN 073 659 677

This article 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.

Australia is home to around 130,000 retail trade businesses of all shapes and sizes. If yours is one of them, you’ll know that keeping sales ticking over and maintaining healthy profits is no easy matter. There are pitfalls aplenty, for new players and old hands alike.

Without the right insurance cover, it can be easy to come unstuck. That’s why it pays to be prepared for whatever challenges may come your way.

These are some of the common exposures retail business owners need to protect themselves against.

PROPERTY DAMAGE

Depending on the nature of your business, the value of your stock and contents may run into the tens or even hundreds of thousands of dollars. Property insurance can help you to replace them, should your business be impacted by a natural disaster or fire.

Without it, you may find it impossible to raise the capital you need to reopen and continue trading.

And if you own your premises, you’ll need cover for that too. Building insurance can help with the cost of moving to an alternative location and making good the damage, if you’re unlucky enough to experience an adverse event.

WORKPLACE INJURIES AND PUBLIC LIABILITY

If customers or staff are injured while visiting or working in your store, they may be entitled to seek compensation.

Having appropriate workers’ compensation and public liability insurance can help you cover the cost, should that occur.

Prevention is always better than cure, Steadfast Broker Technical Manager Michael White points out.

“Rigorous workplace health, safety and training procedures can minimise the likelihood of trips and slips, and the incidence of employees hurting themselves on the job,” he says.

THEFT

Should your business have an open premises, chances are it has been a victim of shoplifting or stealing.

You’re not alone – crime costs the sector a collective $9 billion a year, according to the National Retail Association.

Losses erode profitability, which is why it’s essential to take steps to minimise them. Camera surveillance and security tags on high value items can be deterrents for those seeking a five-finger discount at your expense.

Because of the frequency with which it occurs, insurers are generally reluctant to offer cover for shoplifting. Retail business owners who succeed in obtaining a policy are likely to find it comes with a high excess, White warns.

CYBERCRIME

In today’s times, retailers must also be aware of another form of theft: that of commercial and customer data.

Australia’s cyber watchdog, the Australian Cyber Security Centre, received 76,000 cybercrime reports in FY2022. The average cost per report was more than $39,000 for small businesses, and $88,000 for medium businesses.

“Retailers need to be on their guard against criminals seeking to steal from them, via phishing scams and social engineering gambits, such as the sending of false invoices in the names of legitimate suppliers,” White says.

“It’s also incumbent upon retailers to take all reasonable precautions to prevent third parties gaining access to customer data which can be used for fraudulent purposes, such as identity theft.”

Implementing stringent cyber safety practices can make your enterprise a smaller target. And if you’re unfortunate enough to experience a cyberattack or data breach, cyber insurance can help cover financial losses and the cost of remediation.

COVER TO KEEP THE DOORS OPEN

If it’s been a while since you reviewed your business insurance, now is a great time to do so. To discuss all your retail cover needs, contact your AIB broker today.

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 these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.

Australia is home to more than 30,000 restaurants, 28,000 cafes and coffee shops and 9000 pubs, bars and nightclubs. If yours is one of them, you’re likely to be already familiar with some of the challenges that are part and parcel of running a hospitality business. It also pays to be prepared if you plan to open your own establishment.

There’s a lot that can go wrong and without the right insurance cover in place, it’s easy to end up out of pocket or, in a worst-case scenario, out of business.

These are some of the most common exposures hospitality business owners need to protect themselves against.

PUBLIC LIABILITY

If someone slips on your dining room floor, contracts food poisoning after eating in your establishment or suffers any other form of injury while on your premises, they may decide to seek compensation.

Public liability insurance can help cover the cost of personal injury and property damage claims made by individuals other than your employees. The nature of your business will determine the level of cover you’re likely to need.

“The risk of fights, for example, is much higher when you’re running a club versus a café or restaurant because people aren’t necessarily going to be drinking as much alcohol in the latter,” Steadfast Broker Technical Manager, Michael White explains.

PROPERTY AND MACHINERY DAMAGE

If your business does any form of cooking, the risk of kitchen fire can be present. Property insurance can help you to repair the damage should a blaze break out, while machinery insurance can be used to replace any equipment that’s damaged or destroyed.

Sometimes the rectification process can be a protracted one if equipment or parts aren’t readily available or need to be imported from overseas.

“Some special orders can take up to six months,” White says.

BUSINESS INTERRUPTION

That’s when business interruption insurance can come into play. Designed to help your business keep running after a catastrophic event, it can help to cover ongoing costs while you recover and rebuild.

“If you’re unable to cook or offer your full menu, for example, your takings may be significantly reduced,” White explains. “Business interruption insurance can help tide you over until you’re ‘cooking with gas’ again.”

WORKPLACE INJURIES

Hospitality environments can be fast-paced and hazardous, which means the risk of workers injuring themselves on the job – think burns, cuts and slips and trips – is high. That’s why it pays to implement stringent workplace health and safety procedures and to ensure all employees are adequately trained.

They’re can be entitled to seek compensation for any physical or mental injuries incurred in the course of their employment, so having appropriate workers compensation cover can help you meet the cost, should that occur.

THEFT AND BURGLARY

Unfortunately, break-ins can be a common occurrence for businesses across all sectors, including hospitality. Theft and burglary insurance can cover loss or damage to your stock and contents resulting from forced entry.

COVER TO KEEP YOUR HOSPITALITY BUSINESS HUMMING

If you haven’t reviewed your business insurance for a while, now is a great time to do so. To discuss all of your hospitality cover needs, contact your AIB broker today.

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 these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.

Across Australia, businesses of all shapes and sizes are turning to information communication technology to automate repetitive tasks, reduce overheads and increase sales and profits.

So is the insurance sector. Eighty percent of local insurers are using Insurtech – tools and technologies designed to make the insurance industry more efficient – according to the results of APRA’s 2020 InsurTech survey.

And they’re finding a wealth of applications for artificial intelligence (AI) in insurance – computer systems that can mimic the way humans perform tasks and, over time, use the data they collect to improve the way they operate.

AI IN INSURANCE BECOMES EYES IN THE SKY

AI is being used in conjunction with satellite imagery to amass data about everything from the health of livestock and crops to the characteristics and condition of real estate assets. Having this detailed information on hand can make it quicker and easier for insurance companies to generate quotes and policies for customers.

The same technology can be used to gather intelligence about flood risks and assess the damage caused by natural disasters, such as bushfires and cyclones.

The information can also then be used to help insurers provide policies and settlements that more accurately reflect the risk and the level of damage sustained.

Meanwhile, the incidence of fraudulent claiming can also be reduced with the ability of assessors to have the facility to compare highly detailed ‘before and after’ images.

SMARTER AND SAFER WORKPLACES

AI is also being used to improve workplace health and safety. In the US, for example, insurers have captured video footage of workers in manufacturing facilities and have subsequently used AI to help analyse the risks associated with specific postures and positions.

Armed with this data, the businesses in question have been able to modify their ergonomics, thereby reducing the likelihood of workers’ compensation claims and, ultimately, the premiums they pay for their cover.

ROBOTIC PROCESS AUTOMATION

And, back at the office, the claims handling process is being sped up considerably through the use of robotic process automation – software that can perform a wide range of defined actions faster and more accurately than humans are able to do.

SMARTER INSURANCE FOR SMALL BUSINESSES

Being able to reduce costs and become more efficient using AI isn’t just good for insurers. It can also have benefits for customers, Steadfast Director of AI and Emerging Technology Steven Tuften says.

“As well as more accurate claims assessment and faster processing, businesses can look forward to insurers being able to offer more customised cover,” Tuften says.

“Over time, AI may enable insurers to replace fairly generic policies with tailored ones, courtesy of the fact that individual risk will be able to be analysed in far greater depth.

“That may result in savings for businesses that have demonstrably low risks or are prepared to invest in measures to reduce them.”

Understanding your business insurance policies

If you haven’t reviewed your business insurance for a while, it may be a good time to consider whether you’re adequately covered. Contact your AIB broker today to discuss your policies and how they are calculated.

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.

Many workers like the idea of swapping paid employment for the financial and personal rewards that running their own show can offer. And while the upcoming year may hold challenges for businesses and consumers alike, there are still plenty of opportunities for individuals looking to make the switch.

Australians have long been a nation of small business owners.
There were more than 2.5 million actively trading businesses in the Australian economy in June 2022, according to the Australian Bureau of Statistics.

Many workers like the idea of swapping paid employment for the financial and personal rewards that running their own show can offer.

And while the upcoming year may hold challenges for businesses and consumers alike, there are still plenty of opportunities for individuals looking to make the switch.

In fact, many of the country’s biggest and best-known businesses were founded during times of economic uncertainty.

Those include JB Hi-Fi and Billabong, which launched in the wake of the 1973 oil crisis, and Cotton On, which began selling affordable casual wear during the recession of 1991.

Exploring new business opportunities

Starting a business in a sector or industry where work is plentiful and skills are scarce can make it easier to secure a profitable customer base.

The National Skills Commission’s Skills Priority List released in October 2022 showed technicians and trades workers were in scant supply, as were professionals and community and personal service workers.

That could be an opportunity to strike out for yourself, if you’re currently working in one of those sectors and have the appropriate qualifications or experience.

Opportunities for sole traders and small businesses are also plentiful in the transport postal and warehousing, scientific and technical services, and finance and insurance sectors, according to research released by small business software vendor Xero in late 2021.

Safeguarding your new business

Having the right insurance policies in place can help to protect your new enterprise and its assets, should something go wrong.

Underinsurance is an issue for many fledgling businesses, with other seemingly more pressing financial priorities taking precedence, according to Steadfast Broker Technical Manager, Michael White.

“This is often an area where owners look to save money, especially in the early days when money is tight, but it can be a false economy,” White says.

“Not having adequate cover for your enterprise may make it hard for you to recover and remain viable, should you experience an early setback.”

Getting the basics in place.

As a general rule of thumb, all businesses should have public and product liability insurance. The former provides cover for accidents and injuries caused by your business activities while the latter can protect your business if a product it supplies has caused harm to a person or their property.

If you intend to lease premises or invest in furniture, equipment and IT systems, property insurance can safeguard your assets against theft, malicious damage and natural disasters.

And if you’re planning to take on employees or contractors, you’ll need a workers compensation policy to cover your business against work-related injuries and illnesses.

COVER THAT CAN KEEP YOU IN BUSINESS

If you’re not sure what type of cover is right for your new business, talking to a specialist can help. Contact your AIB insurance broker today to discuss your options.

If you’re the director of a company and you have not registered for a director ID, you could risk a penalty of up to $1.1 million.

So, if you’re among the many directors who have not yet registered for their ID, now’s the time.

The Australian Taxation Office has said penalties won’t affect anyone who applied for their director ID before 14 December 2022.

Now every director is required to apply for a director ID under the Corporations Act 2001 (Cth).

You will need to have a myGovID to apply for the director ID, so if you don’t have a myGovID it’s time to get one now.

A director ID is perennial, even if the person:

Changes companies.
Stops being a director.
Changes their name.
Moves interstate or overseas.

The director ID will help prevent the use of false or fraudulent director identities and helps the government to take action against illegal activity.
It’s also important so that shareholders, employees, creditors, consumers and know who are the directors of a company.

The 15-digit ID will make it easier for administrators of failed companies to track directors between companies.

It’s also going to help stop ‘phoenixing’. This is when the directors of a failed company start a new company, a phoenix company, to carry on the activities of the previous company, just without the debt of the previous company.

As a company director, you must apply for your director ID yourself, your tax or BAS agent can’t apply for you.

The easiest way to apply for a director ID is through www.abrs.gov.au. The ABRS is a new service the federal government has launched for managing business information. You can also apply for a director ID by filling in paper forms.

Fines apply

The maximum criminal penalty for not having a director ID when required, or failure to apply for one when directed by the Registrar, is $13,200, with civil penalties extending up to $1.1 million.

Steadfast Broker Technical Manager Michael White says in the event a director receives a civil penalty, liability insurance may cover its cost.

“But insurance won’t cover criminal penalties.”

It’s important to ensure you have the right insurance in place if you are a director of a business. Talk to your broker today to find out more.