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Are you insured enough?

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Underinsurance, having an insurance policy without enough ‘sum insured’ to cover potential losses, is a huge business risk.

According to global research group Rice Warner, Australia is one of the most underinsured nations in the developed world. Indeed, it’s estimated that Australians are underinsured by a staggering $1.37 trillion!

One in ten Australian businesses has no insurance cover

A recent report from the Insurance Council of Australia showed that the prevalence of non-insurance or underinsurance in the Australian SME sector was approximately 12.8 per cent.

Ben Hastie, Managing Director of Resilium Insurance Broking, suggests underinsurance is a big problem for small businesses.

“There are some small businesses that either do not have any insurance at all, or have inadequate sum insured coverage,” he says.

“Obviously, having no insurance is a major risk, but some business owners look to save money by having cheaper insurance premiums, but the danger in this is that the lower the premium, the narrower the cover.”

Taking the cheap option could mean lower costs in insurance premiums but at the risk of having a policy to protect your interests should disaster strike.

Review your Insurance needs regularly

Even if your business doesn’t change much over time, it’s still very likely that the space in which it operates has changed.

For example, a few years ago malware attacks and data breaches weren’t something SMEs had to worry so much about. Today however, ransomware attacks and Cyber-crime is on the increase, targeting businesses of all kinds, small and large.

“It’s important to update your Insurance Adviser with any important changes to your business, whether it’s taking on new clients, hiring new employees, moving premises or buying new equipment,” says Hastie.

How we can help

As a qualified and Authorised representative of Resilium Insurance Broking, we have the knowledge and expertise to carefully examine your business’ level of risk and provide professional insurance advice.


Talk to us today so you can have peace of mind that your property and assets are adequately insured should the worst-case scenario take place.


[1] Rice Warner, Australias-relentless-underinsurance-gap, 2016.

[2] Insurance Council of Australia, 2015-non-insurance-in-the-small-to-medium-size-enterprise-sector.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact us directly for a confidential discussion.

Management Liability insurance – who needs it and why

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Business Directors and Managers are increasingly under pressure to please a multitude of key stakeholders whether they be business partners, employees, shareholders or clients. Should one of these stakeholders become displeased, it can lead to lawsuits and costly compensation payouts.

It’s why Management Liability insurance, which can cover the cost of investigating, defending and settling claims by a third party, is one of the most important business insurances a company can have.

According to Adrian Kitchin, Managing Director of Resilium Insurance Broking, if a business is not adequately covered with Management Liability Insurance, its Directors and Managers could well be at risk of losing not just their business, but also their personal assets as well.

“The reason this insurance is so important is that it can provide cover for a business against claims that arise from mistakes or even deliberate actions, like fraud, from the company or its Directors or employees – both past and present,” he explains.

“It’s important to note that even if you, as a Company Director, are unaware of any negligent actions of one of your subordinates or junior employees, you can still be exposed to legal consequences,” says Mr Kitchin.

What kind of Claims against a Director or Officer or their business can be covered by Management Liability insurance?

  • Bullying
  • Breach of duty
  • Crime loss cover including investigation expenses
  • Defamation
  • Discrimination
  • Fraud
  • Harassment
  • Occupational Health and Safety
  • Tax Audit expenses cover
  • Theft by employees or contractors
  • Unfair dismissal.


Depending on the cover you take, the right Management Liability policy can typically protect against some or all of these risks:

  • Damages and claimant costs awarded against you
  • Legal fees
  • Investigation costs
  • Civil fines and penalties
  • Representation costs where you are legally required to attend an inquiry or investigation regarding company affairs.


Do you need Management Liability insurance?

Mr Kitchin says that a good way to know if you need Management Liability insurance is to consider the following questions. If they resonate with you then you would probably need Management Liability insurance.

  • Crime– How easy is it for your inventory to be stolen by employees? Do you make electronic payments to suppliers?
  • Cyber– What kind of security practices do you have in place to protect your business from cyber risk?
  • Employees– Do you have a process in place where employees can regularly voice concerns about the workplace environment and personal development?


“Sometimes business Directors wonder if they should get Management Liability insurance or if they should have Professional Indemnity, or indeed both,” says Mr Kitchin.

“Management Liability Insurance is focused entirely on the ‘act of running a company or business’,” he explains. “Professional Indemnity Insurance on the other hand deals with claims that could be filed by third party companies, partners or suppliers over a faulty or poor service.”

“A Professional Indemnity policy is equally important, but it will not protect your business or your personal assets if there are claims that you, as a Director at the company, were involved in illegal or unethical management practices which in turn caused losses to other individuals or businesses,” he concludes.

Talk to Insurance Mentor today about the potential risks and exposures that come with running a business and how Management Liability Insurance could be one of the best business decisions you’ll have made.