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Cyber Risks - a day in the life

There have been a number of security issues exposed in the last 24 hours highlighting the need for all Businesses to consider their exposures in the Cyber Risk area.

Chinese hackers claim to have infiltrated the secure smart card system used by US Government employees, according to a report by AlienVault. Government agencies generally use the smart card system as an extra layer of defence, Techspot said, as user passwords are generally quite easy to hack. It is not yet known what information, if any, has been compromised but the smart card system controls viewing of sensitive material.

Meanwhile, the websites of Tel Aviv Stock Exchange and El Al, the Israeli airline, were compromised in distributed denial of service (DDoS) attacks on Monday.

And a Twitter user has threatened to release the full source code for the Norton anti-virus software, a week after Symantec – the maker of Norton anti-virus products – admitted that its products had been compromised after a cyber attack on India’s military network. 

Retailers Need Cyber Fraud Coverage

An article on the Lloyd’s of London web site notes that while millions of people have been out an about shopping this Christmas New Year season, “an increasing number are choosing to shop from the comfort of their homes – and offices – using the internet.” However, the “growth in internet shopping brings new risks for retailers.”

There is “cyber and payment fraud insurance” that can protect companies during critical trading periods like Christmas.”

It is likely we will see a general trend towards more online transactions as more and more consumers turn to the internet to find products and make purchases. We have seen internet sales grow substantially as consumers go in search of better promotions. 

Santa Claus urged to improve his Risk Management

Risk management and insurance experts at the International Risk Management company and Insurance Broker Lockton made a list and checked it twice of all of the exposures K. Kringle Manufacturing Inc. faces on an annual basis.

The Insurance report discusses suitable insurance coverages with recommended limits, and the cost to protect Santa and his operations from financial ruin should the unexpected occur. 

The report gave 14 claims scenarios with examples of some of the exposures his operations face. It covered every likely scenario from toys in transit (ocean marine) and reindeer injuries (exotic animal coverage) to airborne sleigh accidents (aviation) and coal handling for “naughty” kids (pollution). Included also is crime coverage to protect against theft by The Grinch. 

Have a look at your Business's Security

There are many forms of crime that may affect your business, however by implementing some simple strategies you can greatly reduce the risk to your business. 

Senior Constable Donna Burley of Queensland Police from the Carseldine Police Station recently addressed the Brisbane North Chamber of Commerce Gateway meeting providing advice to members about how to improve security (which ultimately improves insurance premiums).

The Queensland Police are very happy to come out to your business and give free security checks and advice because as we all know, prevention is better than cure. Call them on 07 38635114 if you would like this service.

Or try their link here or as follows

Home Based Businesses need to have Insurance too

While working from home for many of us is quite enjoyable, if it is a home-based business. you need to be aware that an ordinary Householders may not pick up most of your risk. In fact, it may cover very little. You should make sure you have appropriate insurances in place to protect not only yourself but the future of your business.

Standard homeowner policies do not generally provide cover for many aspects of a home-based business. For instance, they may cover a home office up to a certain limit, but if you are holding stock, or building supplies used for a commercial project, your Householders policy will not respond to any loss or damage caused to it.

Is your Business Interruption cover adequate enough?

Watch out for shortcomings in your Business Interruption cover

Business Interruption remains the most undersold but vital cover to include in a Business Pack or ISR policy (Section 2 Consequential Loss).

But problems exist even when an Insured has chosen the cover. Have they set it up correctly? Will it respond adequately after a material damage claim?

I just want to touch on a few areas that can cause shortcomings in the cover. 

The importance of adequate Removal of Debris cover

It has been easy for Removal Of Debris (ROD) to be determined by insurers and brokers at 10% of the sum insured for the building. However, it is likely this will not be adequate enough.

The difficulty of building on a particular site is directly related to building’s cost. For example, sites with difficult access or steep slopes are usually more costly to build on. Therefore it should be expected that removing debris from a difficult site will also be more costly. So is a 10% allowance for Removal of Debris enough?  

A 10 per cent allowance might not be enough in buildings of comparatively low value where site access is, or later becomes very difficult.

If the building is full of asbestos or hazardous chemicals, the increased costs to clear can be much more than the 10% allowed for.

Latest News

High Court dismisses Business Interruption Test Case

Today the High Court dismissed appeal by Insurers on the Business Interruption test case. Even the big insurers make silly mistakes! But you the policy holder may benefit if you were one of the 40% of Business Pack policy holders that added Business Interruption cover to their Business Pack. While it was never the intent of insurers to cover policyholders for the loss of income from a pandemic, the fact that insurers never factored in a risk premium for it, and the fact there is supposed to be a material or physical loss to trigger the Business Interruption section, none of that matters according to the highest Court in the land. So what was the mistake? Simply that when insurers defined what they considered to be the definition of an infectious disease, they referred to the Quarantine Act of 1908 which since was superseded by the Biodiversity Act of 2015. Because the Quarantine Act of 1908 no longer exists, apparently you cannot draw on this for a definition of an infectious disease? Not one of the insurers picked up on this! Shows how much interest we take on the business of Governments, except what is reported in the media.

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Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

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