Many small and medium business owners and managers can expose themselves to potential financial difficulty by entering into contracts.  The business owner is typically focusing solely on the perceived benefit and not necessarily appreciating the liability and other consequences of what is being signed.

At Insurance Advisernet we understand the risks associated with signing contracts and we are pleased to provide you with a free copy of Mannings Guide to Contract Reviews.  This free guide explains the major issues that should be considered when signing any contact, large or small.

We understand that signing contracts is part of doing business, however not everyone understand the full implications of what they are signing and the consequent exposures arising.  This in nothing new, the risks associated with entering into contrasts are increasing.

Continue reading “Do you sign business contracts?”

The increased cost of construction brought on by the carbon tax and the soft economic conditions mean many more small businesses are taking the risk of being underinsured, an insurance consultant warns.

The managing director of loss adjuster LMI Group, Allan Manning, says many businesses are already underinsured and few realise they will be forced to dip into their own pockets when they make a claim.

For instance, if a business owns a building worth $2 million but has it insured for just $1 million, then the insurer will cover only 50 per cent of losses, with a small tolerance for errors. If a fire caused $250,000 damage to the building, the insurance company would pay out just $125,000, leaving the business owner to make up nearly $100,000.

Continue reading “Undervalued: why less is risking more”

In December 2013, a well-known IT security blogger, Brian Krebs, was trawling some internet forums when he saw cyber criminals boasting about their latest ‘acquisition’ of credit card details. Two independent sources later, Krebs had confirmed that Target had been hacked and stolen customer cards were being traded on the cyber black market.

Fast forward to last week, and we now know Target has notified US regulators that over 110 million customer records have been exposed, a third party contractor is being investigated as the source of the security flaw, and Target executives have publically admitted they knew nothing of the massive breach until notified by US law enforcement (who saw Krebs’ blog).

While ‘mega breaches’ make for good headlines, they believe the reality that business and organisations of all shapes and sizes are just as vulnerable to these types of exposures as Target. First party costs (including recovery and restoration, investigation and response, business interruption and expenses for technical expertise) can run into the tens of thousands very quickly, for even the smallest business. And if the US experience is anything to go by, third party claims and class actions also loom on the horizon for vulnerable entities.

Continue reading “Cyber is the New Black”