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Tag: Business insurance

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Business Cyber Insurance Insurance Insurance Insights

Why Brokers Need Your Details (And Why It Matters More Than Ever)

Insurers have significantly tightened their underwriting over the past 12 – 18 months, and the level of data required before quoting has increased acrosss the board.

What’s changed?

Insurers are now scrutinising risk information far more closely than they used to. Where a brief overview may have been enough in the past, underwriters today want specifics: detailed claims histories, updated asset values, current risk management practices, workforce numbers, and revenue breakdowns. We are essentially asking for the works.

It’s not about being difficult. It’s about insurers protecting their books in a tougher market.

And here’s the reality: incomplete or vague information leads to higher premiums, coverage restrictions, or declined quotes.

Why we’re asking (again)

We know it can feel repetitive. You provided this information last year, and your business hasn’t changed significantly. Why do we need it all over again?

Because insurers treat every renewal as a fresh underwriting exercise. They’re reassessing your risk profile based on current information, not last year’s data. If we don’t provide comprehensive, accurate details upfront, we lose negotiation power, and potentially you may lose more as a result.

What good information gets you:

  • Sharper pricing – Underwriters price what they understand. The clearer the picture, the tighter the premium.
  • Broader coverage – Detailed risk information helps us argue for better terms, higher limits, and fewer exclusions.
  • Faster turnaround – Complete submissions avoid the back-and-forth that delays quotes and eats into your renewal timeline.
  • More options – Insurers are more willing to quote and complete when they have confidence in the information.

Our commitment to you

We are not asking for details to tick boxes. We’re asking to secure the best possible outcome for your business. Every data point you provide gives us leverage to negotiate on your behalf, and in this market, that leverage matters.

We also get that you’re busy. If there’s a way we can make the renewal process easier by pre-filling forms, scheduling a quick call instead of lengthy emails, or consolidating requests, please let us know. We’re here to make this work for you, not add to your workload.

What this means for your business

The insurance market hasn’t changed, and neither have the expectations around risk information. The more detail we have, the harder we can push for competitive terms. It might feel like extra effort now, but it translates directly into better cover and better value when renewal time comes.

As always, if you’ve got questions about what we’re asking for (or why), we’re happy to walk you through it.

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Business Insurance Insurance Insights

Why Run-Off Cover Matters More Than You Think

When we asked our Insurance Advisors what cover they wish clients took more seriously, one answer stood out: run-off cover.

Many business owners with Professional Indemnity insurance cancel their cover when they retire, sell their business, or stop trading.

They often think they no longer need insurance.

But without run-off cover, they will not be protected for work they did in the past.

What Is Run-Off Cover?

Run-off cover is an extension to Professional Indemnity insurance. It protects a business after it stops trading.

Professional Indemnity insurance is a claims-made policy. Because of this, it is important for businesses to add run-off cover.

To understand this, it helps to see how different types of insurance work.

Occurrence-Based Insurance (e.g. Public Liability)

Most insurance, such as Public Liability insurance, respond based on when an incident happens.

For example:

  • A business had Public Liability insurance from 2010 to 2015
  • Someone slipped at the business premises in 2014
  • The claim was made in 2020

In this case, the policy from 2014 can still respond. This is because the incident happened while the insurance policy was active.

Claims-Made Insurance (e.g. Professional Indemnity)

Professional Indemnity insurance works differently.

It is a claims-made policy. This means there must be an active policy when the claim is made.

For example:

  • A business had Professional Indemnity insurance from 2010 to 2015
  • The business stopped trading and cancelled the policy in 2016
  • A claim was made in 2020 about advice given in 2014

Even though the business had insurance when the advice was given, there is no active policy in 2020 when he claim is made.

Because of this, there will be no cover to protect the business.

Without run-off cover, the business will need to pay legal costs, settlements, or compensation themselves.

Other common claims-made insurance include:

  • Cyber Insurance
  • Management Liability insurance

How Run-Off Cover Helps

This is where run-off cover is important.

If a business takes out run-off cover after it stops trading, it can still be protected if a claim is made later.

Run-off cover is especially important for:

  • Retiring business owners
  • Businesses being sold
  • Professionals changing industries
  • Anyone cancelling a claims-made insurance
Small business owner speaking with insurance broker about run-off cover protection

Why Run-Off Cover Matters

Claims for advice or professional work can take years to appear.

Sometimes a problem is not found until long after the job is finished.

The Good News

Run-off cover is often cheaper than active insurance.

The cost can also go down over time as the risk reduces.

Many industries suggest around 7 years of run-off cover. But the right time depends on the business, contracts, and industry.

Speak to Your Broker Before Cancelling Cover

It may feel natural to cancel insurance when closing a business or retiring.

But without understanding future risk, it can lead to serious financial problems later.

Before cancelling any claims-made insurance policy, speak with your broker about run-off cover.

A short conversation today could help protect you from a costly claim in the future.

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Business Cyber Insurance Insurance

Liability Insurance: Why Litigation Costs Make It Essential

Running a business comes with risks. Accidents, property damage, and legal claims can happen at any time, even when you’ve done nothing wrong. That’s why liability insurance is so important.

At its core, liability insurance is triggered when a claim of negligence is made against you or your business. Even if you did nothing wrong, defending yourself in court can be very expensive. Liability insurance for businesses helps cover both the costs of being found negligent and the significant expenses involved in defending a claim.

Liability insurance protects your business if someone says you caused them financial loss, injury, or property damage. It covers both any compensation you might owe and the legal costs of defending yourself.

This coverage is essential because defending a claim, even if you did nothing wrong, can cost tens or hundreds of thousands of dollars. Liability insurance makes sure you don’t have to pay these costs yourself.

What does Liability Insurance cover?

Liability insurance is meant to protect you from:

  • Claims of negligence – if someone alleges your actions (or failure to act) caused them financial loss, injury, or property damage.
  • Legal defence costs – including lawyer’s fees, court filing costs, expert witnesses, and settlement negotiations.
  • Damages or compensation – if you are found liable.

This applies to a wide range of scenarios, from a customer slipping on your premises to damage caused to someone else’s property while on a job site.

What is the trigger? Negligence

The most common trigger for liability claims is an allegation of negligence. Negligence doesn’t mean you intended to cause harm, it could simply mean someone believes you failed to take “reasonable care.”

For example, a cafe owner might be sued if a customer slips on a wet floor and becomes injured. Another scenario could be a tradesperson being sued if their work is alleged to have caused property damage.

How does it protect your business?

You don’t need to lose a case to lose money. Even if you haven’t been negligent, defending yourself in court can be extremely expensive. Lawyers’ fees, expert reports, and court appearances can quickly add up to tens or hundreds of thousands of dollars.

Liability insurance covers these defence costs, so your business can keep running while the case is ongoing. Without it, you might have to pay out of pocket, which could be a financial blow many businesses can’t handle.

Do you need liability insurance? A broker would know

Liability insurance is not just protection for when mistakes happen. It’s protection against the rising costs of legal disputes and claims, even when you’ve done everything right.

Understanding the level of protection you need can be complex, which is why speaking with an experienced broker can make all the difference. And whether you have questions about your current cover, need guidance on policy options, or want to explore a quote, our team is here to help.

Contact our team at he***@******om.au to discuss your options or request a free quote. Let’s work together to secure your business and keep it thriving.

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Business Cyber Insurance Insurance Insurance Insights

Protecting Your Business With Cyber Risk Management

Business cyber risk management and cyber insurance protection

Cyber risk is one of the most common threats for Australian businesses. It can disrupt operations and cause serious losses.

To help businesses, the Australian Government released the Essential Eight. This is a set of eight practical cybersecurity strategies. They are designed to help businesses get back to trading quickly after a cyber incident.

Essential Eight Cybersecurity Strategies

The Essential Eight encourages businesses to:

1.Keep software up to date: Regularly update your operating systems and applications to close security gaps.

2. Control access: Only allow authorised staff to make important system changes. Remove access when staff leave.

3. Use strong passwords and MFA: Strong passwords plus multi-factor authentication (MFA) add an extra layer of protection.

4. Limit risky programs: Block or restrict applications and macros that are commonly used to spread malware.

5. Back up data often: Make frequent, secure backups. Test them to make sure you can restore data quickly.

6. Protect against phishing and unsafe sites: Reduce risk from malicious emails and dangerous websites.

7. Have a simple response plan: Know what steps to take and who to contact if something goes wrong.

8. Educate your staff: .Use monthly updates from the Essential Eight team to keep staff aware of the latest cyber threats.

Australian business protecting against cyber risk with Essential Eight cybersecurity strategies

Why Cyber Risk Management Matters

Insurers now look closely at cyber risk management when deciding coverage, premiums, and claims for Australian businesses. Businesses that follow frameworks like the Essential Eight are better prepared if a claim occurs.

Demonstrating these controls can also help negotiate stronger coverage or lower premiums.

What You Should Do?

If you’re reviewing your insurance or risk management, now is a good time to consider how the Essential Eight cybersecurity strategies could be implemented in your business. Contact your broker to discuss these controls in detail.

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Business Cyber Insurance Insurance Insurance Insights

AI in Business: Powerful Tool, New Exposures

Artificial intelligence in business: Insurance to manage AI risks_Hero

Artificial Intelligence in business is now part of everyday operations. It helps with admin tasks, data analysis, and customer service. It can also help write messages and emails. AI is a useful tool for saving time and improving efficiency.

For many businesses, using AI is no longer a choice. It is becoming necessary to stay competitive. But every new tool brings new risks, therefore, it is important to understand these risks before relying on AI.

Understanding AI

A simple way to think about AI is to compare it to your home. A robot vacuum or dishwasher can save you time. But they only work well if the space is set up properly. If there are items on the floor, blocked pipes, or the machine is too full, problems can happen.

AI works in the same way.

The more AI is used in your business, the more important it is to control how it is used. You will need to manage what it can access and who is responsible for it.

Without clear rules and controls, businesses may face challenges. Effective AI risk management can help reduce:
  • Data privacy and confidentiality breaches
  • Cyber attacks or system failures
  • Incorrect results or false information
  • Intellectual property or copyright problems
  • Legal or regulatory issues
Artificial intelligence in business: Insurance to manage AI risks

The Role of Business Insurance for AI

From an insurance point of view, protection must keep up with new technology.

Many insurance policies do not clearly cover AI-related problems. This is common when data, cyber risk, or professional advice is involved. Just as you protect your home and contents, you should also protect your business. This means checking your insurance regularly and making sure your coverage matches how your business uses technology, including AI.

Keeping Business Efficient and Protected

AI can make running your business easier and faster. The key is to set it up properly and ensure you have the right protection in place.

If your business is starting to use new technology or is expanding its use of AI, now is the time to talk to your broker. A review of your risk management and insurance cover, including AI risk management strategies will help make sure your protection grows with your business.