Why is Insurance so important?

Who here likes to pay for Insurance?

What no one?

No one likes paying money to people where all you have to show for it is a piece of paper. However, it’s what’s on this piece of paper that counts.  What you are buying is “Peace of Mind”.

Ask yourself these questions:

  • What would I do if a Fire destroyed my business?
  • What would I do if I made a mistake and someone sued me as a result?
  • Who would pay for the damage I accidentally caused to some one else’s property.

Perhaps the government would bail me out? Whoops we do not live in a Socialist country.

Perhaps the Banks will help me out? Yes only if you pay them back double the money over time.

Perhaps we could adopt the Conservative philosophy, well “you will just have to pull yourself up by the bootstraps and start again”. What with? You should know your place. Only some of us are rich enough to cover the costs.

Perhaps that rich uncle or parent will help me out. Maybe a news story will cover my plight and all these people will offer to donate money to my cause.

Perhaps that same week my Factory burnt down, my Lotto numbers come though! Even though it would have been nice to use that money for something else.

I even know religious people who say “it is the will of God”. Yes well that reminds me of a joke about a guy on a boat who got washed overboard. There he is treading water, and a boat comes past and says “you right mate? Do you want us to rescue you?”. But the man in the water says “No, this is the will of God, he will look after me..”.  The next day, still treading water and getting very hungry, another boat comes past. They yell out to him, “Mate, do you want to be rescued?” He says, “No, I have faith in God, he will look after me..” Anyway, the guy eventually drowns and he gets to the Pearly gates and demands to see God. He says to him, “I put my faith in you, that you would look after me and see me right after I was washed overboard. Why did you not do this?” And God says to him “What are you talking about, I sent two boats?”.

Well, Insurance has been sent by God folks. It is there to rescue you if you have some sort of unfortunate event occur. I deal in General Insurance which means something material damaging your assets, or if you are financially liable for injury or property damage to some one else. Insurance is there to see you through the highs and lows caused by accidents or natural disasters. It is protecting your interests.

Governments control economic issues. You control the direction and success of your business. Insurance is there for things totally unexpected and out of your control like Fire, Storm and Accident.

It is a Peace of mind issue because once you have insured your assets and covered yourself for liability, then you can focus your mind on other issues, such as your actual business activities knowing that if some disaster was to occur that could potentially destroy your business, you have transferred that risk away and would be able to keep going.

By the way “Acts of God” are covered!

(This was part of a presentation given recently to a Business Group by Robert Cooper) 

Latest News

Ransomware a threat

You sit down at your computer to check your email. It is Christmas time and you are getting notes from many different delivery companies saying that a package was unable to be delivered to your home. Please click on the reply button (link) to advise where or when the parcel can be redelivered.

It looks authentic, you have no reason to believe that it simply advice about collecting yet another parcel in time for Christmas. The company named is well known and reputable. Admittedly the email address looks a little strange. However, you also know there are many new domain names and extensions now, You click on the reply button…

Before you know it, your computer has downloaded a version of “Crypto-locker”. Your first thought is that expensive Anti-Virus software should have picked it up, but they can only pick up viruses they know about. This brand new release of “Crypto-locker has locked up your screen and is demanded $1,000 worth of “Bitcoin”. What the hell is Bitcoin?

The fact is Australian businesses are increasingly at risk of attack by malicious ransomware software. Hackers have moved on from targetting government and banks, and are now going after small targets on a wide scale.

They are setting small amounts because small business works out that it is cheaper to pay the Ransom than hire an IT expert to fix up the problem.

Ransomware is software that infects a user's computer or network, locking access to files until a sum of money is paid. Crypto-locker is an example.

For now, Cyber Risk Insurance is available and if your Insurance Broker or Adviser has not yet discussed this with you, then contact us.

This is a real threat to your business, can affect your income and Brand reputation. Just like other Liability policies, you should not take the risk un-insured because it can wreck a business.

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Above-average cyclone season looms

Insurers should brace for an above-average cyclone season due to weakening La Nina conditions in the Pacific Ocean and warmer than average sea temperatures to the north and east, according to the Bureau of Meteorology.

The cyclone season begins next month and ends in April.

The bureau says Australia has a 67% chance of an above-average season, while the west has a 59% chance, the northwest 63%, the north 56% and the east 58%.

In neutral years the first tropical cyclone to make landfall typically occurs in late December, while in La Nina years it usually hits in the first week of December, the bureau says.

Insurance Council of Australia spokesman Campbell Fuller says even an average cyclone season – consisting of 11 events, four of which make landfall – can be devastating.

“An above-average year could bring many more than that, and each one has the potential to cause catastrophic damage if it crosses the coast in a heavily populated area,” he said.

As reported by insurancenews.com.au

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