Getting business insurance right in the new financial year

Cyber protection is now essential

One area of insurance which has come to the fore is cyber insurance. It is not just about the risks from cyber attacks or loss of data, but about maintaining client privacy.

“What happens if you’re hacked – and if the hackers sell on client bank details?” says Edmonds. “We now have insurance products to help businesses meet costs of responding to investigations for breaches of privacy or for hacking of email and IT systems.”

According to Colin Pausey, Emergence’s Chief Operating Officer, Australian regulators are likely to prosecute organisations that fail to implement adequate security measures to prevent cyber attacks.

Regulators have moved beyond a softer approach of educating organisations about their responsibilities and are likely to take action against those that fail to implement adequate cyber protection. The Australian Government is working on a new Cyber Security Act that will impose new obligations and standards across industry and government.

Colin says regulators have taken courage from a Federal Court case brought by the Australian Securities & Investments Commission (ASIC).
He predicts more prosecutions, particularly by the Office of the Australian Information Commissioner (OAIC), regardless of whether an organisation is a victim of crime, like a ransomware attack.

ASIC launched Federal Court proceedings against RI Advice Group after nine separate data breaches occurred between 2014 and 2020. The parties reached a settlement and the court’s 5 May 2022 judgement found RI had breached the Corporations Act by failing to have an “adequate risk management system”.

Insuring for business interruptions

If the last few years showed us anything, it’s that businesses need to be prepared for major interruptions. Small businesses were disproportionately affected by COVID-19 and 2022 was a year of catastrophic weather-events, high inflation, and regulatory change. Resilience in these times of change is critical.

“Business interruption – the things businesses can’t see coming – is often neglected”, says Edmonds. “More than half of Australian businesses don’t have it – they’re all very exposed to a major event.”

A business interruption insurance policy can cover the loss of any revenue or profit you would have made while your business is out of action – plus any extra costs you incur to stay open.

However, business interruption insurance takes time and can be tricky. It involves the business owner and their broker working through each area of expense which will or will not continue if there is a business-crippling event. The business needs to estimate turnover for a period of time then look clearly at what the savings and costs would be if the business stopped in its tracks for a long period. Certain costs won’t be incurred when not operating, others will continue.

“It’s all about reviewing risks and making sure you have the right policies and the right amount of cover. It’s always a good idea to make sure inventories, values and valuations are up to date and reflect current costs,” Edmonds says.

We make buying insurance radically easier

We know that navigating the world of insurance can be complex and confusing. Our business insurance brokers compare the myriad of insurance options on the market for you, providing expert advice to implement your chosen plan.

We combine the best knowledge and strategic thinking with technology-driven data to provide tailored insurance solutions to protect your business.

Business insurance brokers Newcastle

NewSure started 20 years ago in Newcastle and since then we have helped companies across the Hunter Region select the right insurance cover to protect their business risks.

Our business is built on personal connection rather than insurance transactions. These strong relationships are built on trust – both with our customers and insurance partners.

We know that great customer experience is the cornerstone of our business. That’s why our consistently high customer satisfaction and reviews speak for themselves.

From protection against machinery breakdown to cyber security, we protect all industries, types of businesses and your assets by providing the right policy to meet your needs.

This allows our brokers to tailor an insurance program to your business and anticipate needs for the next financial year.

We offer complete business insurance solutions for all types of businesses – from start-ups to medium and large size enterprises. Let us help you.

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