Crisis Management Cover

Crisis Management Coverage – What is it?

This is Insurance coverage designed to help a business limit the negative impact of events on the business’ reputation.  Crisis management coverage has previously been arranged for larger organizations, however small and medium-sized businesses should consider this too if their profitability is closely linked to maintaining a good reputation.

A company’s reputation is one of their most valuable of assets.  It is difficult to value and often difficult to protect. It can take many years to establish the good reputation of a brand, but it can be destroyed in an instant.  

Thanks to technology, news spreads quickly. Stories can go “viral” thanks the Internet via email, social media, and other websites. This combined with the 24 hour news cycle provided by Television networks and Radio makes it very hard to prevent a bad news story about an organisation causing damage to your reputation.

This cover has mainly been overlooked because the majority of businesses do not face threats to their reputation often. As negative publicity for them is rare, they are often unprepared for this if it occurs. For example, a notice of a health code violation or a food poisoning outbreak can easily spiral out of control. As a result it can severely impact the ability of the business to stay open.

Many Insurance policies offering crisis management coverage may narrowly define the types of events that are covered. Types of events that may be covered include workplace violence, assault, firearm use, food contamination, and workplace accidents. Events may also include credit card breaches or the hacking of a company’s computer network by an outside party. The coverage may be triggered as soon as news of the event is reported by the media, whether in regional forums or national forums. Coverage is usually set for a limited period of time, such as 60 days, after a crisis event occurs.

Policy coverage can include the following:

  • Emergency and crisis preparation
  • Paying for communications professionals to assist the policyholder in identifying and executing a strategy to limit further impact of the event in the media. For example, the business may need to employ a public relations professional.
  • Loss of business income funds for a set period of time.
  • Post-event issues, such as funeral arrangements or counselling for individuals who witnessed or were involved in the event.

The financial and management implications of incidents and subsequent litigation means expert preventative and incident management advice is essential.  It is so important that those responsible in managing a company can demonstrate that they are well-equipped to deal with unexpected crises or emergencies.

A Crisis management solution should make sure there is operational preparedness, minimising business interruption, deal with any image damaging consequences as a result of crisis related loss, and subsequently strengthen your market position.

Some insurers can provide pre and post incident risk management offerings to help our clients reduce exposure to threats and minimise the impact of any incidents on their business operations.

Who can help?

Contact a specialist insurance broker such as Cooper Professional Risks Pty Ltd.

Call CPR Insurance Services.- Experts who will save you.

Latest News

Will you lose the value of a Broker?

If you listen to the Podcast on this link you will here Robert Cooper explain to his Accountant why Small Business stands to lose if Insurance Brokers are not there to advise start up businesses and established businesses about the risks their occupation carries and how they can deal with them. Simply because they will not want to pay the fees that would be charged. Currently instead, Insurance Companies pay the Broker after the Insurance has been placed with them. Perhaps the premiums will appear a bit cheaper in the first year? Then they will question the fees an Insurance Broker puts on top and finds they can go to the Internet and obtain the same cover at the same price. However, they will not have the constant advice and claims advocacy that comes with an Insurance Broker. The big loser is definitely the Consumer as direct insurers give absolutely no advice, only price.

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Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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