DIRECTORS COMMENTS ON INSURANCE MATTERS AND MORE
This page will be regularly updated with
- Relevant insurance helpful hints
- Reviews of what is happening in the insurance market
- A range of business topics
INSURANCE
Hint: If you want to understand an insurance aspect, speak to an Insurance Professional.
Reason: Inspired Insurance Services has received two disturbing calls over the last week that is not all that uncommon. The first call was an anxious business owner that had just received a substantial Workers Compensation bill. This bill however did not relate to their renewal or the end of policy adjustment. This bill related to a wage audit that had been completed by his insurer going back over the last three years.
Insurers have the option to complete wage audits and they can be over a varied period of time up to around 5 years. The basis of the audit is to insure that the correct wages have been declared and the correct premium paid.
Unfortunately for this business owner, he had been given incorrect advice by his Accountant who also was the person that signed off the Wages Declarations each year stating that the figures were correct. Upon completion of the audit, the previous declared wages were not correct as the Accountant hadn’t taken into consideration the Contractors that the business owner was actually responsible for. The outcome was a sizeable additional bill of over $20,000.
Just by utilising a person as a Contractor or Sub-Contractor does not necessarily remove your responsibility to provide Workers Compensation.
Suggestion: If you are unclear on any matter that relates to or in this case affects an insurance policy, speak to an Insurance Professional such as Inspired Insurance Services whose position it is to ensure you are given accurate and correct advice. Ask for the confirmation of position in writing from your Insurance Professional and wherever possible, get supporting information, be it from the Product Disclosure Statement (PDS), a Government authorities FAQ’s or from the insurer themself.
Hint: Ensure your business tools and equipment are secured when they are in your trailer or the tray of your ute.
Reason: Theft of business tools and equipment usually covered under ‘GENERAL PROPERTY’ is consequent upon violent and/or forcible entry. A window being broken or a lock being cut is more often than not, sufficient to constitute violent and/or forcible entry. Laptops stolen from vehicles must be consequent upon the vehicle being broken into.
Suggestions: Many Jims Mowing franchisees have already been noted to be securing their garden care equipment to the caged sides of their trailers by chains and padlocks. Other trailers that are fully enclosed are also being secured by either padlock or lockable handles. Few trades people are utilising lockable tool chests in the tray of their utes. All of these measures ensure that violent and/or forcible entry is required in order for business tools and equipment to be stolen.
The chances of a successful claim would be more probable if your items are secured appropriately.
BUSINESS
Hint: Remember your motivators
Reason: With the influences of day to day activities, we sometimes forget why we do what we do. Many people go into business because it is their passion or they want to help others. Sometimes running a business introduces many facets that haven’t been considered previously and these can be very challenging. There are many avenues of support available such as local Business Associtions, Industry Associations, Small Business Centres and Business Growth Centres. Some of these are available on our ‘USEFUL LINKS’ page.
Suggestions: Write your motivators on small pieces of paper (post-it-note) and surround yourself with them. Have them beside your bed, around the bathroom mirror for when you are getting ready, stuck to your monior while you work. It’s important to consistantly remind yourself why you do what you do. Remain focused and positive.
GENERAL
Hint: If you are driving outside of the metropolitan area, please drive with your headlights on.
Reason: Driving with your headlights on improves the chance of being seen by oncoming traffic. While this may not seem important on the open roads, it is the treelined roads that we are fortunately surrounded by that cause difficulties. If you own a darker coloured vehicle, vision by others is difficult when you are travelling within the shade of the trees. As a motorcyclist, our Director knows the importance of being able to see others and also of being seen.