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Business Insurance

Commercial Property Insurance: Why Purchase Price Doesn’t Equal Sum Insured

When arranging insurance for a commercial property, many owners make a common mistake: using the purchase price as the sum insured.

On the surface, it feels logical. If that’s what you paid for the property, surely that’s what it’s worth? However, the purchase price doesn’t always reflect the actual cost of rebuilding.

Purchase Price vs. Rebuild Value

It’s important to understand the difference between the purchase price and rebuild value when it comes time to insuring your property. Yes, both relate to what your property is worth, but they represent and serve very different things.

Purchase Price

The purchase price of a property represents the total amount paid to acquire it on the market. It’s affected by several factors, which include:

  • The value of the land.
  • The property’s location and market demand.
  • Broader economic conditions at the time of purchase.

None of these is relevant to an insurer if your building is damaged or destroyed. Insurance is about replacing the structure itself, not the land it sits on.

Rebuild Value

The sum insured is generally expected to reflect the full replacement value of the building, which includes:

  • Demolition and debris removal.
  • Professional fees (engineers, architects, surveyors).
  • Current labour and material costs.
  • Compliance upgrades (to meet today’s building codes).

What’s the difference?

The key difference between purchase price and rebuild value lies in what each represents. The purchase price reflects the property’s market value, including the land, location, and broader economic factors, while the rebuild value focuses solely on the cost to reconstruct the building if it were damaged or destroyed. This includes demolition, debris removal, professional fees, materials, labour, and any upgrades needed to meet current building codes. In short, insurance covers the cost to rebuild, not the market price you paid.

The cost of getting it wrong

If your sum insured is based on the purchase price rather than a professional valuation, you risk being underinsured. And underinsurance doesn’t just affect you in the event of a total loss. It can also reduce your payout even in the case of a partial claim. For example:

  • A property was purchased for $2 million, but the actual rebuild cost is $3 million
  • The sum insured is set at $2 million (instead of $3 million).
  • A fire causes $600,000 worth of damage
  • Because the building was underinsured by one-third, the insurer may pay only two-thirds of the claim (about $400,000)

This could leave you, the owner, with $200,000 out of pocket expenses even though the damage wasn’t a total loss.

professional property valuations matter to help you determine the right cost to insure your property for

Why professional property valuations matter

Construction costs in Australia have surged in recent years, driven by shortages of materials and skilled labour. Without a proper valuation, it’s easy to underestimate the cost of rebuilding today compared to when you purchased the property. A professional building valuation gives you:

  • Confidence that your sums insured are accurate
  • Protection from co-insurance penalties
  • Peace of mind that your biggest asset is covered correctly

It’s best to arrange a professional building valuation every few years and review your insurance sums annually. That way, your cover keeps pace with any changes to your property, as well as rising rebuild costs and inflation.

Avoid underinsurance with proper valuation

The purchase price reflects market conditions, not rebuilding costs. Having a commercial property is already a significant investment, and underinsurance can create unexpected financial strain during claims. To safeguard your investment, arrange a professional building valuation and review it regularly. That way, your insurance truly reflects today’s replacement costs, not yesterday’s market value.

When it comes to protecting your assets and ensuring the sums are properly accounted for, a Broker would be a huge help. If you want advice or are interested in learning about available options for commercial property coverage, reach out to East West Insurance Brokers today.

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Business Insurance

How Underinsurance Can Hurt Even in Partial Claims

Avoid underinsurance with the help of a Broker.

When you think of business insurance, you probably imagine it kicking in after a total disaster, like a fire that levels your building or a car that’s completely written off. But what many business and property owners don’t realise is that even if your loss is only partial, being underinsured can leave you with serious financial strain. Shortfalls in coverage can hurt so you need to be prepared before it’s too late.

What Is Underinsurance?

Underinsurance happens when the sum insured on your policy is less than the true replacement or repair cost of your asset. In other words, you’re insured for less than what it would actually cost to rebuild, repair, or replace. It’s surprisingly common especially with the rising construction costs and inflation. So, if you’re not regularly reviewing your cover, this can also leave you underinsured and underprepared.

The 80% Co-Insurance Rule in Australia

In Australia, most commercial property and business insurance policies include a co-insurance (or average) clause set at 80% of the asset’s replacement value.

What this means:
  • If you insure your asset for at least 80% of its true value, the insurer will generally pay the full amount of any loss (up to the sum insured).
  • If you insure for less than 80%, the insurer can reduce the claim proportionally even if the loss is only partial.
Example:
  • True Building Value: $1,000,000
  • Minimum Cover Required (80%): $800,000
  • Insurance Purchased: $600,000 (60% of true value)
  • Loss: $200,000
  • Claim Calculation: (Sum Insured / Minimum Required) X Loss
Example of a claim calculation.

That would be [($600,000 / $800,000) X $200,000] $150,000 paid. Even though the damage was only partial, you’d be $50,000 out of pocket because of underinsurance.

The real-world Impact of underinsurance

  • Unexpected repair bills – You may have to fund a large portion of repairs yourself.
  • Cash flow pressure – Reduced payouts can strain your business finances.
  • Delayed recovery – With less money to repair or replace assets, recovery takes longer.
  • Business risk – In some cases, underinsurance can threaten not just your return to business, but also your overall ability to keep operating.

How to avoid underinsurance

  1. Get regular valuations – Ensure your building, plant, and equipment values reflect today’s replacement costs.
  2. Factor in inflation – Materials and labour costs rise quickly; your insurance should keep pace.
  3. Review sums insured annually – Don’t just renew “as is” each year.
  4. Work with an Insurance Broker – They understand co-insurance clauses and can explain how it will affect you.

Insurance should offer peace of mind, not unpleasant surprises

You take out insurance for security, not for shock and disappointment. But if your cover is less than 80% of the true replacement value, even a partial loss can leave you with a reduced payout.

So, don’t take the risk. Review your business insurance cover with a Broker. They can even recommend professional valuers to ensure your sums insured are accurate to help you avoid the risk of underinsurance.

If you’d like the support, the team at East West Insurance Brokers is ready to help you perform a review and make sure you’re properly protected.

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Business News

Opportunities for Australian Sole Trader Plumbers

As Australia moves toward a greener future, the plumbing industry sees a quiet revolution. Environmental regulations are tightening, and more homeowners and businesses are actively seeking sustainable options. For plumbers, this shift presents a golden opportunity that can help them stand out in a competitive market and command premium rates —specialisation in eco-friendly plumbing services

Why Go Green?

Sustainability isn’t just a trend. It’s becoming the new standard as more people turn to greener alternatives. From reducing water waste to lowering energy bills, eco-conscious clients prioritise long-term savings and environmental impact. By positioning yourself as a specialist, you can build trust and long-term relationships with these value-driven customers and get ahead of the game.

Niche areas you can explore

While general plumbing services will always be in demand, specialising can open doors to higher-paying jobs and less competition. Consider niche areas to improve your competitive advantage:

Rainwater tank installations

Given Australia’s variable climate and increasing water restrictions, rainwater harvesting has become more valuable than ever. Installing rainwater tanks for purposes such as garden irrigation, toilet flushing, or laundry usage helps clients reduce their reliance on mains water and lower their water bills.

Greywater systems

Homeowners increasingly seek innovative ways to reuse water from showers, sinks, and laundry. As water conservation becomes more important, there is a growing demand for plumbers who can integrate greywater systems and water-efficient fixtures into homes and businesses. Greywater systems provide an eco-friendly solution that helps households reduce their water usage. By specialising in installing and maintaining these systems, you position yourself as a forward-thinking plumber who can offer both environmental and economic benefits while ensuring compliance with local council regulations.

Energy-efficient systems

With rising energy costs and sustainability at the forefront of Australians’ minds, more Australians are investing in energy-efficient hot water systems. Solar hot water, heat pump systems, and instantaneous gas units are all in high demand. By becoming an expert in these technologies, you can offer high-value services backed by federal and state incentives, making your offerings more attractive and financially accessible to clients.

Backflow prevention testing

To protect drinking water supplies, backflow prevention devices are legally required in many commercial and industrial settings. Certified plumbers who offer testing, maintenance, and compliance reporting can secure ongoing contracts with commercial clients. This niche provides a reliable, repeat-business stream and sets you apart as a compliance-focused professional.

Thermostatic Mixing Valve (TMV) Servicing

TMVs are critical in healthcare and hospitality settings to ensure safe water temperatures. Regular inspection and maintenance are required to meet safety standards. Specialising in TMV servicing provides access to a regulated market with potential for more repeat business.

Drainage & pipe relining

Compared to traditional pipe replacement, pipe relining offers a cost-effective, no-dig solution. Investing in modern equipment and training allows you to provide efficient solutions for blocked or damaged drains, appealing to homeowners and businesses.

Develop your niche to stand out from the market.

Gas fitting services

Gas fitting is a consistently in-demand service in Australia and with proper licensing, you can handle various jobs from appliance installations to leak detection. Expanding into gas work can massively increase your earnings and service offerings.

The business advantage for sole traders

Specialisation means more than just offering a service—it’s about becoming known for it. When you focus on one or two key areas, marketing becomes easier, and referrals come faster. Plus, clients are often willing to pay more for someone with proven expertise in the solution they need
You also reduce price-based competition, improve efficiency through repeated processes, and gain more profound knowledge in your chosen field—all of which help your bottom line.

Ready to Make the Shift?

If you’re thinking about expanding your plumbing business, consider how you can incorporate eco-friendly plumbing solutions into your service offering. Start with the systems you’re already familiar with, then upskill and work to get certifications to build credibility.
As demand grows and sustainability becomes the norm, those who specialise early will be in a prime position to grow their business and make a lasting impact.
Being an Australian sole trader plumber can be challenging at times, but it also offers incredible freedom and direct rewards. As your own boss, you have the flexibility to set your own hours, within certain limits. However, this also means that the success of your business is closely linked to your hard work and skills. To continue thriving in the plumbing industry, it’s important to embrace opportunities and invest in yourself.

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Business Construction Insurance Insurance

How Property Valuation Affects Commercial Property Insurance

Protect your business with tailored commercial property insurance from our Australian experts. Over 40 years of experience. Get your free quote today!
Protect your business with tailored commercial property insurance from our Australian experts. Over 40 years of experience. Get your free quote today!

What do a cozy cafe, a small retail shop, and a towering office building have in common? They all face similar risks when it comes to protecting their property. From fires and floods to theft and vandalism, these unexpected events can disrupt operations—or even force a business to shut down entirely.

That’s why having appropriate commercial property insurance is important. Whether you own or lease your space, your insurance can be the lifeline safeguarding your business from financial fallout.

But before you start insurance shopping, you should first get your commercial property professionally valued.

What is a property valuation?

The estimated market value of a property, which a qualified professional appraiser usually performs. This assessment is based on various factors, which include:

  • Condition of the property
  • Existing structures
  • Location and proximity to other facilities
  • Market trends
  • Renovations and upgrades
  • Size and layout
  • Valuation of similar properties within the area

There are two main types of property valuations, each serving different purposes. Understanding the distinction between them is crucial to avoid costly mistakes.

  1. Real estate valuation – Used for buying, selling, or securing a mortgage. This type of valuation assesses a property’s sale value, which is influenced by current market trends.
  2. Insurance valuation – Used in insurance applications. It focuses on the cost of rebuilding or repairing a property based on current construction costs.

Insurance valuations are sometimes calculated using a $ per square metre estimate. However, general property valuers may not be qualified to quote rebuild costs. To ensure you’re not underinsured, it’s recommended to consult a surveyor for a more accurate figure.

It’s also important to remember that real estate and insurance valuations can differ significantly, sometimes in millions, and should not be used interchangeably.

Properties in prime location with plenty of foot traffic will also be valued higher.

How can property valuation impact insurance?

Insurers may use the property valuation report to determine what coverage is necessary and calculate the total cost of the premiums they’ll offer. A higher property value can mean more payouts are required in the event of a repair or replacement claim, leading to higher premiums. On the other hand, they may offer lower premiums to properties with lower value. The catch is this may mean less coverage and more out-of-pocket costs in case of a claim.

You need an accurate property valuation to balance adequate coverage and manageable premiums. This would help you avoid the following:

Over-insuring

Securing as much coverage as possible may sound like the safer option. However, insurers typically don’t pay more than the actual repair cost or the property’s market value. If your property is overvalued, this might lead to over-insuring and paying higher premiums for coverage you may not even need.

Underinsuring

Undervaluing your commercial property to pay lower premiums may sound like an easy way to save money, but it won’t help your business long-term. You may end up exposed to the risk of being underinsured in the event of a claim. Payouts from insurers may not cover enough repair or replacement costs, leading to additional financial strain.

Penalty fees

Policies may include a ‘co-insurance’ clause, which requires the property to be insured to a certain percentage of its value. If your property is found to have been undervalued, your insurance company may penalise you with a penalty fee or reduce the payout in the event of a claim.

Legal issues

An inaccurate commercial property valuation may also violate contractual agreements for leasing and mortgage.

Learn more about commercial property insurance by contacting East West Insurance Brokers.

Insurance property valuation determines the premiums you'll need to pay.

How else can I benefit from property valuation?

It’s advisable to have your property professionally revalued every few years or whenever significant changes occur, such as renovations, expansions, or shifts in the local market. This helps you and your insurance provider update your coverage to match your business needs.

Having accurate and up-to-date valuation also minimises disputes during claims because insurers are better equipped to assess losses accurately, ensuring a smoother claims process.

Secure your commercial property

Having an accurate and up-to-date property valuation empowers you to make smart financial decisions while ensuring you have adequate insurance coverage to protect your investment. In business, preparation is everything—and staying ahead begins with understanding the true value of what you own.

Want to learn more about commercial property insurance? Connect with East West Insurance Brokers! Our team of expert insurance brokers can provide valuable insights into commercial property coverage for you and your business. Contact us today to get started!

Categories
Business Construction Insurance Insurance

Australia’s Welding Industry: Trends Driving Growth and Opportunity

welding-industry-trends-in-australia

The future of the global welding industry looks bright. As demand from sectors like automotive, construction, and heavy engineering continues to rise, the industry’s value is projected to grow from USD 24.73 billion in 2023 to USD 34.18 billion by 2030. Australia is poised to be a key player in this exciting transformation. But what developments are in store for the welding industry?

Increasing Demand for Skilled Welders

“By 2030, we will be 70,000 welders short“, according to Geoff Crittenden, chief executive of Weld Australia. It’s an issue faced by other countries, such as the United States and Japan.

While the worker shortage can mean more employment opportunities for aspiring welders, given the numerous ongoing infrastructure and expansion projects, there is a pressing need to address it now. As a result, the Australian government is encouraging more investment in the welding industry by funding businesses and nurturing the talent pool through various programs.

Promoting Diversity in Trades

Women make up 48% of the country’s workforce. However, less than 1% in the welding and fabrication sector are women. Part of addressing the worker shortage is taking a proactive approach to promoting opportunities for women. In 2022, the Victoria government launched the Building Equality Policy to support women in getting into male-dominated industries. More projects are also being funded to encourage other underrepresented groups to enter trades and STEM training.

Skilled Migration Program

Australia is also looking to address the labour shortage with the Skilled Migration Program, which reopened in October 2023 with new criteria. The government has streamlined the visa process to help experienced and skilled tradespeople from overseas apply for jobs in Australia. This helps fill vacant positions and fosters regional development by introducing global talents.

The welding industry is evolving with new technologies

Innovation Through Technological Advancements

As demand grows, technology advances to cope, and the welding industry is no exception. The launch of Industry 4.0 last year has given a boost by pushing for the integration of digital technologies like AI, Internet of Things (IoT), and robotics. These have dramatically enhanced productivity while supporting Australia’s sustainability efforts by promoting energy-efficient practices. Here are just some examples:

  • 3D printing – Allows for the rapid creation of prototypes and complex components, unlocking new design possibilities while minimising waste during the design phase.
  • Internet of Things (IoT) – Utilises real-time data reporting to enable predictive maintenance, helping reduce downtime and enhancing operational efficiency during critical issues.
  • Robotic and laser welding – Transforms traditional welding practices by enhancing precision and quality, creating new opportunities for businesses to optimise and deliver superior results.
Australia is switching to more renewable sources of energy, pushing the welding industry to adapt.

Switching to Renewable Energy

35% of the total electricity generated in Australia last year was from renewable energy sources. It’s only expected to rise in the following years as the country ramps up efforts to transition to greener energy sources as part of the nationwide goal of reaching net-zero carbon emissions by 2050. Multiple legislation and projects have been introduced to boost support.

Capacity Investment Scheme

First introduced in December 2022 and then expanded in November 2023, the Capacity Investment Scheme aims to unlock $40 billion in private investment into the local manufacturing industry to create more jobs and improve local economic participation in the renewable energy transition.

Future Made in Australia Act

One such effort is the Future Made in Australia Act, a major piece of legislation passed in 2021. Under this, the Australian government commits to providing funding and incentives for businesses to invest in manufacturing capabilities and to adopt cleaner technologies. It aims to make the country’s economy more sustainable, increasing the resilience of supply chains and boosting the manufacturing industry’s ability to compete globally.

State Prosperity Project

The South Australian Government also launched the State Prosperity Project early this year to reindustrialise the Upper Spencer Gulf by harnessing its mineral resources, renewable energy, and green manufacturing potential. The project is in partnership with education and training providers like the Technical College in Port Augusta, opening in 2025. This college will adopt a part-time operation model, offering industry training and work opportunities across the region.

Evolve with the Welding Industry

As the welding market evolves and unveils new opportunities for innovation, you need to continue learning and enhancing your skill set. Stay alert to new trends so you can embrace them and secure a stronger competitive edge. You also need to be aware of any potential risks you’ll face in the industry.

Safeguard your journey with East West Insurance Brokers. Our team of insurance experts will guide you through your insurance options, empowering you to make informed decisions to protect your business.

Visit our website today to request a quote so you can confidently forge ahead!

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Business Construction Insurance Insurance

A guide to safeguarding your retail business

Retail businesses face more unique challenges today when it comes to security. Threats are not only limited to physical damages and losses. With more people relying on digital transactions, online threats are ever-changing and can even be more damaging.

In this blog, we’ll discuss security strategies you can implement to safeguard your retail business. From offline to online, we’ve got you covered!

Physical Security

Plan store layout with security in mind

A well-designed store layout can do wonders for business growth. Customer experience can be improved by making it easier to find things they might like or need. You can boost sales by highlighting marketable or high-priced items. It can also improve your store’s security by deterring theft and intruders.

A good theft prevention strategy is reducing blind spots would-be thieves could exploit. You can do this by strategically placing shelves and installing mirrors between the aisles. This makes it easier for store employees to monitor customers and send alerts in case of emergencies. It’s also recommended to place higher-priced products near where employees can keep a close watch, preferably far from any exits.

Install surveillance and alarm systems

Ensuring complete visibility within a store is hard, and employees can’t keep an eye on everything at all times, so integrate surveillance and alarm systems in your store. Install security cameras near any entrances or exits, parking areas, and cashier stations. You can prop them up so they’re more visible and act as a deterrent. However, the more visible your cameras are, the easier they can be to avoid or destroy during a break-in.

For additional security, consider installing motion detectors with lights and alert systems to scare off potential intruders. Installing glass break sensors for windows and displays is also recommended.

Control access

Limit access to areas like stockrooms, offices, and surveillance rooms. Most stores have passcodes which can be easy to set up but also be easy to bypass. To enhance your store security, consider implementing key card systems or biometric scanners with secure locks to effectively control access and ensure that only authorised personnel can enter these areas.

Provide secure payment options.

Cybersecurity

Protect sensitive digital information with data encryption

As a retail business, customers often share sensitive information like their names, addresses, phone numbers, and credit card details. If this information falls into the wrong hands, it could damage your business and pose a threat to your customers’ personal security. Improve your digital security by implementing end-to-end data encryption.

Provide secure payment processing

One of the most common times that’s prone to data theft is during payment processing for digital wallets and cards. Vet third-party payment vendors. Perform comprehensive research on their background and customer feedback.

Perform checks and updates regularly

Don’t be complacent after installing cybersecurity measures. Stay vigilant and frequently check every software or security system to ensure it’s always up to date. This will help you detect abnormal activities, malware, and potential security breaches.

Train employees in identifying and preventing theft to improve store security

Employee Training

Train for identifying and preventing theft

Your employees are your greatest asset and, with proper training, can be very helpful in improving store security. Encourage vigilance and regular checks. Provide training on identifying suspicious behaviour, learning theft prevention strategies, and implementing store security policies.

Cyber threats can also target your employees so it’s important to provide comprehensive training on how to handle sensitive information, including customer data and payment details.

Perform regular audits

Besides regularly performing cybersecurity checks, it’s also important to perform regular audits on your store’s physical inventory. This helps ensure accurate stock levels and identify discrepancies early. Regular inventory checks are also a good theft prevention strategy by encouraging employees to be accountable.

Insurance

General Liability Insurance

Having General Liability Insurance provides added financial security by protecting your business against claims of personal injuries, property damage, or loss within store premises. For example, if a customer is pickpocketed inside your store or injured in the parking lot and then accuses the store of negligence, General Liability Insurance may help cover repair and legal costs.

Commercial Property Insurance

Commercial Property Insurance, like General Liability, can cover repair and legal costs. The difference is that it can provide coverage for losses directly suffered by the store from incidents like property damage, inventory theft, and equipment breakdown.

There are many factors and risks that you need to consider, so it’s best to speak with an insurance broker. You can contact East West Insurance Brokers to submit an inquiry and receive more information.

Business Interruption Insurance

Unforeseen circumstances and emergencies can cause significant financial damage to retail businesses, so Business Interruption Insurance is necessary. Depending on the coverage you include, it can cover loss of income, ongoing expenses during repairs, and even temporary relocation costs.

Secure your retail business with appropriate coverage

Want to find appropriate coverage for retail business insurance but don’t know where to start? Our East West Insurance Brokers team is ready to help you explore your options to protect your business. Get in touch and secure your future with us today!

Categories
Business Construction Insurance Insurance

Common Mistakes Made When Purchasing Business Interruption Insurance

The business world can be unpredictable, and even minor events can disrupt daily operations and affect your profits. That’s why having Business Interruption Insurance is critical to a solid risk management strategy. But what is Business Interruption Insurance, and how can you ensure you have the appropriate coverage for your business’s needs?

Business interruption insurance can help mitigate loss of income.

What is Business Interruption Insurance?

Business Interruption Insurance covers lost business income or profits and operating expenses when the business cannot operate as usual. Incidents may include natural disasters and when a facility or equipment sustains damage. However, Business Interruption Insurance works differently from Property and Equipment Insurance. Rather than providing cover for property repair or replacement costs, business interruption aims to cover the loss of income to the business due to the damage sustained or equipment breakdown.

Examples of Benefits and Coverage

Various benefits and specialised coverage areas are needed to maintain financial stability and reduce the damage caused by disruption to business operations. Here are some common examples of the benefits and what the insurance typically covers:

  • Income loss (calculated based on previous financial statements)
  • Operating expenses (utility bills, property rent, other fixed costs)
  • Employee wages (may include benefits and training costs)
  • Tax and loan payments
  • Additional expenses (relocation, equipment repair or rental)

Specific exclusions and constraints can be added to the insurance policies that you must watch out for. It’s ideal to routinely review coverage details to avoid surprises when an incident occurs. You also need to check for other coverage that may be required depending on the nature of your business and service. Contact East West Insurance Brokers to explore your options and find the insurance that suits your business.

Common Mistakes and How to Avoid Them

Underestimating coverage needs and costs

A common oversight many business owners make is underestimating the full impact of operational interruptions and focusing solely on lost revenue. When evaluating Business Interruption Insurance, consider the entire spectrum of operational costs, from daily expenses, employee wages and benefits to supply-related expenditures.

Where your business is located and what type of industry you’re in plays a vital role in determining the necessary coverage and premium costs. Those operating in high-risk areas and industries require even more comprehensive coverage. Properly assessing these elements when selecting your policy helps ensure your business remains resilient despite unexpected challenges.

Failing to review and update insurance policy terms and conditions

Business Interruption Insurance policies vary regarding coverage, limits, and exclusions. Before signing the dotted line, it’s essential to review the insurance policy terms and conditions to ensure it meets your business’s specific needs. Pay close attention to factors such as the waiting period before coverage kicks in, the length of coverage, benefit period, and any limitations on coverage for specific events.

Remember to review current insurance coverage regularly after signing, too. Always take a proactive approach and stay informed about your policy details. It can help you identify any necessary updates or adjustments as your business grows and evolves.

Prevention of access is a specialised coverage under business interruption insurance

Not considering additional or specialised coverage

Each business is unique, with specific challenges and requirements shaped by its industry, location, and operational scope. Part of a good risk management strategy should be evaluating the additional or specialised coverage and integrating custom insurance solutions. So, consider the following:

Prevention of Access (PA)

Many unforeseen events can disrupt business operations, from natural disasters to other dangerous situations. These may prevent you from operating your business and even restrict access to your premises by a legal authority ordering the evacuation of the public. This is where Prevention of Access comes in. It’s a specialised type of coverage under Business Interruption Insurance that protects against loss resulting from interruption of, or interference with, your business as a result of damage or threat of damage to property in the vicinity of the premises covered by the policy.

Suppliers and/or Customers Premises (SCP)

SCP is a specialised type of coverage that aims to protect businesses from financial losses resulting from property damage or loss at specified suppliers’ or customers’ premises. Suppose a manufacturing company faces significant delays and income loss due to a key supplier’s failure to deliver the necessary components in production following an insured event at their location, SCP can help mitigate the loss. On the other end of the supply chain, if your business relies on revenue from major customers who cannot complete their purchases due to property damage at their own premises, you can file a claim to minimise your losses.

Public Utilities Extension (PUE)

While SCP protects against issues with third-party businesses in the supply chain, PUE is related to utility providers. It mitigates financial instability when utility services fail and disrupt normal operations as a consequence of damage to any land-based property anywhere in Australia or New Zealand. This includes incidents involving any utility company producing, transmitting, supplying or delivering electricity, gas, water, sewerage or communication products or services used by the business. Companies in manufacturing, hospitality, and IT can significantly benefit from PUE.

Inaccurate or improper documentation

If you’re filing an insurance claim for loss of revenue, proper documentation is critical to ensuring that you receive the full benefits of your Business Interruption Insurance policy. Keeping detailed records of your finances and any communication with your insurance provider also reduces the likelihood of being denied.

Seek advice from a professional

Avoid making these common mistakes. Discover how to calculate your Business Interruption Insurance and get a reliable estimate. Seek advice from a professional insurance broker to ensure your business is covered as effectively as possible.

East West Insurance Brokers can assist you in evaluating your business’s requirements and comparing coverage options from multiple providers. Our team of experienced Insurance Advisors will provide valuable insight as you navigate different policies’ various terms and conditions. Get in touch with us today and get insured.

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Business Cyber Insurance Insurance Liability Insurance

Business Insurance Checklist for New Businesses in Australia

Checklist-insurance-for-new-businesses-in-Australia

Starting a new business can be an exciting and challenging endeavor but as a new business owner in Australia, you will have many things to consider, including finding business insurance with suitable coverage. To help you on your journey, we have compiled a checklist of coverage based on your general business needs and how insurance can protect your business.

Get liability insurance to protect your business from claims of property damage or third-party personal injurty

Liability Insurance

Cyber Liability Insurance

We live in a digital age with growing cyber threats. So Cyber Liability Insurance is becoming increasingly important, especially for businesses that store sensitive customer data or rely on technology and online platforms for their operations. The level of security may differ, but generally, Cyber Liability Insurance provides coverage for data breaches, cyber-attacks, and other online threats like hacking or data theft that can impact your business.

Public Liability Insurance

If your business interacts with or works with the public, one major insurance you’ll need is Public Liability Insurance. It provides coverage for claims against your business from property damage or third-party personal injury caused by your operations. This can be from activities at the workplace or at another location. Public liability insurance helps protect you from potential lawsuits.

Product Liability Insurance

Similar to Public Liability Insurance, product liability provides coverage for claims of property damage or third-party personal injury. The difference is instead of being a result of operations, product liability covers claims made against the products you sell or supply.

Professional Indemnity Insurance

When you provide services or advice to customers, Professional Indemnity Insurance protects your business from claims of negligence or errors and omissions in your services.

Reliance on heave equipment requires extensive breakdown and property insurance

Insurance for Properties and Assets

Commercial Property Insurance

Whether small or big business, Commercial Property Insurance is essential regardless of your industry. It covers any properties or assets used for your business operations, including infrastructure, equipment, and inventory against damage or loss due to fire, theft, vandalism, or natural disasters.

Investing in property insurance is not just about compliance or managing risk but also about ensuring the continuity and resilience of your business. By protecting your physical assets, you can mitigate the impact of unforeseen events, keeping your operations running smoothly and speeding up recovery after adverse situations.

Equipment Breakdown Insurance

You’ll want Equipment Breakdown Insurance if your business relies on machines or technological equipment. This is not typically included in standard Commercial Property Insurance but is essential for businesses in manufacturing, technology, restaurants, and any other niche that heavily depends on functional equipment.

Equipment Breakdown Insurance can cover the repair or replacement costs of equipment that breaks down unexpectedly due to causes like motor burnout, power surges, or mechanical malfunctions. Beyond covering physical damage, it often addresses business losses incurred from equipment downtime, such as lost income and extra expenses needed to expedite repairs or procure temporary replacements.

Flood Insurance

Flood Insurance may only sometimes be included in Commercial Property Insurance. However, it is still a must-have, mainly if you operate in areas prone to flooding or work in an industry where the threat of flooding can derail business operations.

Business interruption insurance has been p

Finance Insurance

Business Interruption Insurance

When business operations are disrupted, whether by fire or weather conditions, Business Interruption Insurance can help you remain financially stable by covering the loss of income and even unforeseen expenses.

Credit Insurance

Credit Insurance is a risk management tool that helps businesses protect themselves from potential losses if their customers are unable to pay their debts. It’s particularly useful for businesses offering credit to customers, providing confidence when entering new markets or dealing with larger accounts. This insurance also helps companies manage credit risk effectively and optimize credit and collection procedures, safeguarding their financial health.

Workers’ Compensation Insurance

Workers’ Compensation Insurance is a mandatory insurance policy for businesses in Australia aimed at protecting employees if they become ill or injured due to their work. This type of insurance provides coverage for wages lost during the time off work, medical expenses, and rehabilitation costs needed to help the worker return to work.

The requirements and implementation of Workers’ Compensation Insurance can vary considerably across different states and territories in Australia. Differing regulatory bodies also manage worker’s compensation schemes. The State Insurance Regulatory Authority (SIRA) regulates those based in New South Wales, but WorkSafe Victoria manages insurance in Victoria.

So, before you work on finding business insurance for Workers’ Compensation, check your local regulatory office to ensure compliance.

Get your business insured

Finding business insurance doesn’t have to be complicated or stressful. At East West Insurance Brokers, we specialise in simplifying the process, helping you find the insurance coverage that best fits your business needs. Whether you’re just starting or looking to enhance your current policies, our team of dedicated Insurance Advisors is here to guide you every step of the way.

Don’t let uncertainties slow you or your business down. We’re here to help you secure your business’s future. Contact us today and get insured.

Categories
Business Cyber Insurance Insurance Liability Insurance

Requirements for Getting a Business Insurance Quote

Requirements-for-getting-a-business-insurance-quote.

Getting business insurance is essential, but the first step of obtaining a business insurance quote can be very demanding. This process requires you to provide extensive information about your business, not only for assessing and understanding the potential risks your business may face but also for determining the most effective protection strategies and estimating the overall cost of business insurance. But what exactly is required to get an accurate insurance quote?

1. Business Information

Provide detailed information about your business to make it easier to assess the level of risk associated with insuring your business and affects the total cost of business insurance. This generally includes the following:

  1. Business Name: The legal name of your business.
  2. Business Address: The physical location of your business.
  3. Industry Type: The industry or sector in which your business operates.
  4. Number of Employees: The total number of employees working for your business.
  5. Annual Revenue: The yearly income generated by your business.
  6. Previous Insurance Coverage: Details of your business’s previous insurance coverage (if any).
List down your business assets.

2. Assets and Inventory

Another essential piece of information you need to provide is a comprehensive list of current assets and inventory. This should include specifics about the property where your business operates, the equipment utilised in daily operations, and any other assets requiring insurance coverage. The total value of your assets is factored in the calculation of your business insurance quote and can affect what coverage is recommended which leads to the next thing that needs to be assessed.

3. Coverage Needs

Clearly outline your coverage needs when you’re looking for a business insurance quote. By understanding and clearly expressing the specific protections your business requires, you help your insurance provider create a quote that matches your business’s unique needs. This careful preparation not only leads to a more accurate assessment but also ensures that you get the best and most comprehensive coverage.

Here are some examples:

  • General Liability Insurance – protection against claims of bodily injury or property damage to third parties resulting from business operations.
  • Property Insurance – covers damage to business property and assets due to events such as fire, theft, vandalism, or natural disasters.
  • Cyber Liability Insurance – with the increasing threat of cyberattacks and data breaches, businesses need coverage to protect against losses due to hacking, data theft, or other cyber incidents.
  • Commercial Auto Insurance – if your business owns vehicles or if employees use their vehicles for work purposes, this insurance provides coverage for accidents, injuries, and property damage involving those vehicles. This can be especially useful if employees often travel for work events.
  • Product Liability Insurance – for businesses that manufacture or sell products, this coverage protects against claims of injury or damage caused by defects in those products.

If you need clarification on what other types of coverage your business will need, contact East West Insurance Brokers. We are here to help you assess your requirements and needs to find the best coverage plan.

4. Claims History

Be ready to provide detailed information about any past insurance claims your business has filed, including the nature of the claims and the amounts paid out. Your business’s claims history is a significant factor in determining the cost of your insurance premiums.

Insurance providers use this history to gauge the risk level of insuring your business. A track record of frequent or high-value claims might indicate higher risk, which could lead to increased premium costs. Accurate and comprehensive details about your claims history help the insurance company provide a fair assessment and pricing for your coverage.

Hire a professsional to perform a business risk assessment.

5. Risk Assessment

Factors such as your industry, business operations, location, and safety measures are pivotal in the risk assessment process. Providing detailed and accurate information about these aspects will help ensure that your insurance quote is accurate and tailored to your needs. Many insurance providers include risk assessment services with their policies, offering a convenient option for assessing your business risks. Alternatively, hiring a specialized risk management consultant can provide a more in-depth analysis tailored to your specific industry or business niche.

Conducting your own risk assessment is another viable strategy. Start by identifying potential hazards, vulnerabilities, and threats that could impact your business operations. Also consider external factors from economic conditions, local and global politics, as well as health and environmental issues.

 Staying informed through industry publications and news sources is crucial for anticipating and mitigating future risks. There are multiple online resources available to assist businesses in conducting self-assessments and pinpointing potential risks. Being proactive can empower you to better manage and analyse your business’s vulnerabilities.

Looking for a convenient way to get a business insurance quote?

Conducting your own risk assessment to get an estimate cost of business insurance can be time-consuming, particularly when your priority is managing day-to-day business operations. At East West Insurance Brokers, we understand the importance of your time and the complexities of navigating multiple insurance policies. Our team is dedicated to guiding you through the process and identifying the coverage that best suits your needs. Contact our team today to streamline your insurance process and ensure your business is protected.

Categories
Agriculture Business Insurance

Sustainable Initiatives That Affect Agriculture Businesses in Australia

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Agriculture is a cornerstone of Australia’s economy and food security. The industry, however, is vulnerable to climate change, soil degradation, and water scarcity. Weather, pest outbreaks, and market fluctuations also threaten farmers’ financial security. That’s why it’s recommended that farmers get agriculture insurance for financial protection and stability amid environmental uncertainties.

Whether you’re a small-scale farmer or part of a large agricultural operation, considering agriculture insurance is a wise decision, and East West Insurance Brokers is here to help. Our team of expert Insurance Advisers can help you navigate the insurance market and shop around for a good coverage plan. Contact us today to stay protected.

Government agencies and nonprofit organisations alike have implemented initiatives to enhance agricultural productivity while preserving natural resources. Let’s explore a few of these programs and initiatives driving sustainable agriculture in Australia.

Net Zero Plan

Australia’s Net Zero Plan is a bold and ambitious initiative to reduce carbon emissions by 43% by 2030 and achieve net zero emissions by 2050. The plan seeks to achieve these goals through the support of independent and nonprofit organisations, to create a more sustainable and environmentally friendly future for Australia.

But how does this affect the agricultural sector?

Well, the agriculture industry plays a significant role in greenhouse gas emissions (GHG), mainly through livestock production, fertiliser use, and land use changes. They account for 15% of the total emissions in 2019. Meeting net zero targets will require substantial changes in farming practices, potentially impacting productivity, profitability, and livelihoods. Here are the common practices that are being adopted today:

  • Acceleration of the transition to renewable energy
  • Planting cover crops to improve soil quality and prevent erosion
  • Improving fuel efficiency of fishing vessels
  • Investing in new technology to increase efficiency and reduce waste or raw material consumption

For their part, the Australian Government is developing plans to provide farmers with the necessary education and support to reduce GHG emissions.

Research climate-Smart agriculture programs.

Climate-Smart Agriculture Program

The Australian Government established the $300 million Climate-Smart Agriculture Program through the Natural Heritage Trust (NHT). Below is a sample of programs they offer grants to farmers:

Partnerships and Innovation Grants

The program offers grants ranging from $250,000 to $5,000,000 for medium to large-scale projects that promote climate-smart agriculture practices. The application for the first round began on 22 February 2024, and the second round is still being discussed.

Small Grants

Another grant is offered for projects focused on increasing on-farm productivity and sustainable agriculture for community groups. The start date for application is to be announced later this year.

Soil Capacity Building

The Australian Government has invested $21 million in a program that monitors soil quality nationwide. This program aims to gather and assess data about soil trends. Additionally, $6 million has been invested in improving the sharing and use of soil data through the Australian National Information System.

NFF 2030 Roadmap

The National Farmers’ Federation (NFF) spearheaded the development of the NFF 2030 Roadmap, which was developed through a collaborative process that involved more than 300 representatives in the agricultural sector. Created as a strategic blueprint, the 2030 Roadmap identifies key opportunities and challenges in the agricultural sector. Essentially, it’s developed as a guide for growth and sustainability.

The NFF releases annual reports to track progress, maintain accountability, and push continuous innovation for everyone involved. You can access the 2030 Roadmap and its annual reports here.

Australian Agricultural Sustainability Framework

Another initiative by the NFF, with the support of the Australian Government, is the Australian Agricultural Sustainability Framework (AASF). It aims to promote responsible environmental stewardship by upholding ethical practices in compliance with the law, reducing GHG emissions, and preserving the environment. The framework also encourages the development of communities by nurturing the well-being of people and animals.

The AASF started in 2020 and is still in ongoing development. However, you can visit their site to learn more about the initiative.

FutureFeed aims to reduce GHG emissions.

FutureFeed

Farming, particularly livestock, is a major methane emitter and GHG contributor in Australia. As a solution, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) established the FutureFeed program.

It aims to reduce GHG emissions, boost animal health, and improve farm efficiency with the development of a sustainable feed supplement for livestock using Asparagopsis seaweed.

FutureFeed currently provides licenses for growers and processors rather than selling seaweed directly.  If you want to buy the product for your livestock, you can buy from their licensed seaweed growers.

The Future of Sustainable Agriculture

Challenges and triumphs, emphasising innovation, adaptation, and collective action, mark Australia’s journey toward achieving net zero carbon emissions by 2030. The goal, however, extends beyond meeting the deadline. It sets the stage for a sustainable future that preserves Australia’s diverse environment while pushing for innovation and collaboration across all industries. Australia is also contributing to the global fight against climate change for a greener future by adopting transformative technologies and forming eco-partnerships.