Every business has people who are indispensable to running your operations so it’s important to have protections in place that support them in their roles and provide for the unpredictable. Here are our top 3 insurance essentials that are key to every business owner effectively taking care of their most valuable assets.
These insurance protections cover your key people’s decision making functions and the liability that accompanies that role, their physical health and wellbeing, and the risks they may encounter while travelling to conduct business on your company’s behalf.
1. Looking after your management team
Running an organisation comes with significant liabilities. Business owners, directors and managers are subject to more than 700 federal, state and territory laws that may hold them personally liable for mistakes, employment disputes, regulatory compliance omissions or the conduct of staff members.
Some of these laws hold senior managers accountable for past events even after they have left the business, and executives’ personal assets can be included in imposed penalties, settlements and legal costs.
By having management liability insurance business owners put safeguards in place that protect your individual directors and managers, and the organisation itself in relation to these exposures.
This type of insurance is a coverall term for a business package that bundles together several standalone policies into a single program to provide protection for a variety of risks or liabilities business owners and managers face in their day to day operations.
Management liability protections include
- directors and officers' liability ‒ this insurance covers the costs of defending directors, managers and employees against claims arising from their actions and decisions as managers
- corporate liability ‒ protects the business and its assets from unexpected claims brought against the company itself
- employment practices liability ‒ protects the business from employment practice related claims. This can include unfair dismissal, discrimination by past and present employees, customers or suppliers
- statutory liability ‒ covers both individuals and the company for costs of fines and penalties for prosecutions arising from breaches of laws or regulations
- tax audit cover ‒ pays the costs of fees and charges involved with having an accountant or tax agent respond to an audit notice from the Australian Tax Office (ATO)
- crime cover ‒ protects your balance sheet from losses due to fraud, theft and dishonest activities carried out by employees or perpetrators from outside of the business.
2. Your people’s health and wellbeing
A tangible way to take care of your people is to have measures in place that support them when they and their families need it most: when they are injured or become ill.
Your company’s group accident and personal illness insurance can help your employees with meeting out of pocket costs due to hospitalisation as a result of illness or accident, or mandatory enforced isolation.
Other business exposures this insurance may cover include
- business continuity if a substantial number of your employees are hospitalised or quarantined at the same time due to infectious disease
- costs of responding to a serious accident, which may involve reconfiguring the workplace or adopting new safety protocols
- overseas medical expenses to recompense employees on authorised business travel overseas for unexpected out of pocket costs arising from having sustained and injury or sickness.
Talk with your insurance broker about your business needs. They can help ensure that you have appropriate cover to protect your employees and keep your operations running smoothly when the unexpected occurs.
3. Corporate travel for business
As business activities continue uncertainty or unpredictable changes at the last minute remain factors to be managed. As a source of unbudgeted costs it’s more important than ever to consider protection against disruptions and unscheduled changes to plans.
With this in mind, considering flexible insurance cover for both you and your staff is essential to your ability to adjust and regroup if your business travel plans hit turbulence.
When assessing your travel insurance needs consider
- the extent of your company’s projected of business related travel a year
- the maximum planned duration of your business trips
- the potential for loss of deposits and resultant additional expenses
- emergency medical and evacuation expenses if overseas
- the risk of injury due to accidents or civil unrest
- loss of luggage or business equipment.
Outlining these needs in discussions with your broker helps ascertain what your travel insurance should cover to match potential exposures related to your business activities.
Face your future with confidence
A comprehensive management liability insurance package can give you peace of mind that key risk exposures involved with running your business are covered, enabling you to face your future with confidence when you’re not quite sure what tomorrow may bring for you and your people.
Talk to one of our business insurance specialists to learn more about how we can help you with your company’s needs.
Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient’s industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers’ control.
Insurance brokerage and related services to be provided by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920). Australian Financial Services License (AFSL) No. 238312