Journey Insurance is one of those often-overlooked covers that can quietly save the day. It’s designed to protect employees travelling to and from work, particularly in states where workers’ compensation no longer stretches that far. If you’ve got a team that commutes, this might be worth your time.
What Is Journey Insurance?
Journey Insurance provides personal accident cover for employees commuting between home and their regular workplace. It can cover loss of income, medical expenses not covered by Medicare, and lump sums for serious injury or death.
The critical bit? It kicks in where workers’ compensation drops out.
Why Journey Insurance Exists
Before 2012, most states automatically covered commute-related injuries under workers’ comp. But reforms in states like NSW, QLD, and VIC either narrowed or removed that protection. The result? Your team might be uninsured while doing something as routine as walking to the train station or driving to the office.
If someone is injured during a standard commute, you could both be left exposed in legal, financial or ethical ways.
Updated State-by-State Guide
| State/Territory | Journey Claims Covered? | Notes |
| NSW | ❌ Generally not covered | Only allowed if there’s a “real and substantial connection” to work (e.g. work phone call, urgent errand). |
| VIC | ❌ Not covered | Journey claims excluded under WorkCover. Only job-related travel (e.g. between sites) may be eligible. |
| QLD | ❌ Not covered | Removed in 2010. Limited to work-mandated travel. |
| WA | ❌ Not covered | Standard commuting is excluded. |
| SA | ❌ Not covered | Excluded unless involving a motor vehicle and meeting specific thresholds. |
| TAS | ✅ Covered | Broad journey coverage still applies. |
| ACT | ✅ Covered | Included under the default scheme with no extra conditions. |
| NT | ✅ Covered (with limits) | Benefits limited beyond 104 weeks unless permanent impairment. |
| Comcare (Federal) | ✅ Covered | Covers federal employers; journey claims are included. |
If your business is in NSW, QLD, VIC, WA or SA, your employees are likely uncovered for commuting incidents.
Isn’t Travel Insurance Enough?
You might be wondering: “If I already have corporate travel insurance, do I really need journey insurance too?”
Good question. And the answer is yes, absolutely.
Here’s why:
Travel Insurance and Journey Insurance Cover Different Things
- Corporate travel insurance typically applies to pre-approved business trips away from the employee’s regular place of work, such as interstate conferences, international travel or extended field trips.
- Journey insurance specifically covers daily commutes, including the trip to the office or job site and back home. These are not considered “business travel” by most travel insurance policies.
Standard Travel Insurance Won’t Cover Your 7:00am Commute
If an employee gets hit by a car walking to the office, or slips on a train platform during their regular commute, travel insurance won’t respond. That’s where Journey Insurance steps in, right when you need it most.
They Complement Each Other
Think of travel insurance as your big-ticket cover for trips away, and journey insurance as your everyday safety net. Together, they make sure your staff are protected whether they’re catching a plane or just the train.
Who Is It For?
Journey Insurance is ideal for:
- Businesses based in the journey-exclusion states,
- Teams commuting regularly to worksites, offices or appointments,
- Field staff, contractors, sales teams, engineers, community services, healthcare workers, and more;
- Employers who genuinely care about employee wellbeing.
It sends a powerful message: “We’ve got your back, even beyond the office walls.”
What Does It Cover?
Core Cover
- Accidental death or permanent disablement
- Weekly income benefits (usually 85% of salary during recovery)
- Non-Medicare medical expenses (like physio or chiro)
- Fractured bones & dental injuries
Extras You Can Include
- Funeral and repatriation costs
- Family transport and accommodation
- Childcare and education support
- Retraining and return-to-work benefits
- Coverage during lunch breaks or minor detours (with the right extensions)
A Quick Example
Imagine Jess, a team lead in Melbourne, is riding her bike to work when she’s hit by a car. She breaks her leg, needs surgery, and can’t work for eight weeks.
• Under Victoria’s WorkCover? She’s not covered, as commuting is excluded.
• Under Travel Insurance? No luck, it’s not a business trip.
• With Journey Insurance? She’s likely eligible for income replacement, medical costs, and rehabilitation support.
You’ve just avoided a major financial gap and done right by your employee.
Final Thoughts (From the Broker’s Desk)
Journey Insurance isn’t glamorous, but when the unexpected happens, it’s gold. It protects your team during their most routine risk: getting to and from work.
It’s cost-effective, easy to implement, and shows your staff that you’re thinking beyond the 9 to 5.
If you’re unsure about your current cover or want to close a gap you didn’t know existed, reach out. We’ll talk you through it, no jargon, no hard sell. Just the right advice.
Stay safe, and we’ll see you on the commute.
🔗 Useful Links for Employers Considering Journey Insurance
🧾 Here’s a curated list of resources to help you understand the bigger picture when it comes to journey claims, state legislation, and complementary coverage:
- NSW – Workers Compensation Act 1987 (Section 10 – Journey Claims)
www5.austlii.edu.au/au/legis/nsw/consol_act/wca1987255/s10.html - Victoria – WorkSafe VIC Overview
www.worksafe.vic.gov.au/workcover-insurance - Queensland – WorkCover QLD
www.worksafe.qld.gov.au - South Australia – ReturnToWorkSA
www.rtwsa.com - Western Australia – WorkCover WA
www.workcover.wa.gov.au - Tasmania – WorkSafe TAS
www.worksafe.tas.gov.au - Northern Territory – NT WorkSafe
www.worksafe.nt.gov.au - Australian Capital Territory – Access Canberra
www.accesscanberra.act.gov.au
📘 Complementary Schemes
- Transport Accident Commission (TAC) – VIC Motor Vehicle Accident Claims
www.tac.vic.gov.au - Comcare (Federal Workers’ Comp Scheme)
www.comcare.gov.au
📄 Industry & Insurance Bodies
- Safe Work Australia – Comparison of Workers’ Comp Schemes
www.safeworkaustralia.gov.au - Insurance Council of Australia – General Insurance Code of Practice
www.codeofpractice.com.au
Disclaimer:
KBI PTY LTD is an Authorised Representative (450152) of KBI Group Pty Ltd (ABN 56 167 437 121, AFSL 494792). Any advice in this article is general in nature and does not take your personal circumstances into account. When considering the purchase of an insurance policy, you should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the KBI Financial Services Guide and relevant product disclosure statement.
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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Key Insurance Considerations
Professional Indemnity Insurance
If your offshore team or VA is providing advice, consultancy, or other professional services to your clients, it could create exposure under your Professional Indemnity (PI) policy. Insurers are increasingly asking businesses whether any part of their service delivery is outsourced offshore. Why? Because it can complicate liability if something goes wrong.
Some PI policies have exclusions or conditions around outsourcing and subcontracting, particularly if it is offshore. You may need to declare this upfront when arranging cover. If not disclosed properly, it could impact the validity of the policy at claim time.
It becomes more complex if your business sets up a foreign-registered subsidiary or associate company to engage offshore staff. Depending on the jurisdiction, local insurance policies might be required to comply with regulatory requirements. For example, Malaysia mandates the use of local policies. Similarly, if you engage offshore contractors through a locally registered foreign entity rather than directly, insurers may have limited rights to recover losses from that overseas entity. In some cases, claims might even be excluded.
Many SME businesses using offshoring or VAs often find that standard PI policies available in the market are not capable of being amended to accommodate this risk. Disclosing the use of offshore staff is essential, but it is only the first step. To ensure proper protection, businesses need to work closely with their broker to amend policy terms and conditions or set up additional local policies where needed. This process can be complex and time-consuming, and even among corporate insurers, setting up the right cover is not straightforward.
Cyber Insurance
Many virtual assistants and offshore teams access your systems, files, and client data remotely. This increases your cyber exposure. Consider this: multiple access points from different geographies can significantly raise the risk of a cyber breach.
Insurers often ask about your IT security protocols, including how you manage access for offshore staff. They may also require evidence of multi-factor authentication (MFA), VPNs, endpoint security, and other cybersecurity measures. Weaknesses here could not only impact your risk profile but also influence the cost and availability of cyber insurance.
Given the reliance on remote access, businesses should make cybersecurity a priority, ensuring offshore staff adhere to the same standards as local employees.
Workers’ Compensation and Injury Cover
In Australia, workers’ compensation typically only covers employees based locally. Offshore contractors and VAs are generally not classified as employees under Australian law. However, depending on how your engagement is structured, you still need to be aware of potential employer liability exposures.
While directors and officers (D&O) exposure for employment-related claims may be low in this context, businesses must ensure they understand any statutory Employer’s Liability requirements, both in Australia and in the countries where offshore workers are based. In some jurisdictions, statutory employer liability cover is mandatory even for remote workers, and failing to have the correct cover could leave the business exposed.
Public Liability Insurance
Generally, offshore staff are not physically interacting with your clients or operating on your premises, so the direct impact on your Public Liability policy is minimal. However, if their work leads to client dissatisfaction, financial loss, or reputational damage, it could still spark claims that indirectly affect your broader business insurance program.
Best Practices to Manage Risk
- Be clear and transparent with your insurer and broker about your use of offshore teams or VAs,
- Ensure proper contractual agreements are in place with offshore contractors,
- Implement strong cybersecurity measures, especially around remote access,
- Review your insurance policies regularly to confirm they remain appropriate as your workforce model evolves;
- Seek advice from your broker about any specific endorsements or policy changes you may need to genuinely ensure you have the right protection in place.
The Bottom Line
Offshoring and using virtual assistants can be great strategies for business efficiency and growth, but they are not without risks. Understanding the insurance implications and acting early ensures you are properly protected and avoids any surprises at claim time. Like any aspect of risk management, a proactive approach pays dividends.
If you would like to review how your current insurance responds to your offshore workforce or virtual assistant arrangements, KBI can help. Our team specialises in tailoring insurance solutions to meet the needs of evolving business models.
Disclaimer:
KBI PTY LTD is an Authorised Representative (450152) of KBI Group Pty Ltd (ABN 56 167 437 121, AFSL 494792). Any advice in this article is general in nature and does not take your personal circumstances into account. When considering the purchase of an insurance policy, you should consider whether the advice is suitable for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the KBI Financial Services Guide and relevant product disclosure statement.
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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The Risks Real Estate Agencies Can’t Ignore
Real estate agencies face complex, high-stakes risks every day. Here are the critical ones that could hit your bottom line:
- Breach of Tenancy Agreements and Property Mismanagement
Failing to meet tenancy requirements, mishandling landlord instructions, or neglecting repairs can result in legal disputes that leave your agency footing the bill. Mismanagement claims aren’t just inconvenient—they can run into tens of thousands of dollars. - Misrepresentation Claims
Even unintentional misstatements—like overstating rental returns or failing to mention zoning restrictions—can lead to legal battles. Buyers or sellers seeking compensation for alleged negligence could target your agency for financial losses. - Property Damage Liability
If poor maintenance or oversight causes damage to a property, you could be held accountable. Claims arising from unforeseen events like storm damage or burst pipes can lead to significant repair and legal costs. - Personal Injury During Inspections
Open homes and inspections are minefields for liability. A slip on a wet floor or trip over a loose carpet could result in injury claims worth tens of thousands of dollars against your agency. - Cyber Threats
Real estate agencies are goldmines for cybercriminals due to sensitive client data. Ransomware, phishing scams, and data breaches not only harm your reputation but also result in massive recovery costs.
Each of these risks can disrupt operations, damage your reputation, and cause significant financial losses. Managing them starts with understanding what’s at stake.
Must-Have Insurance Policies for Real Estate Agencies
The right insurance is your safety net. Here are the essentials every agency needs:
- Professional Indemnity Insurance
Protects against claims of negligence, errors, or omissions in your professional services.
Case Example: A landlord sued after a lease failed to include a critical clause, leading to a $60,000 financial dispute. The policy covered the legal costs and settlement. - Public Liability Insurance
Covers claims for third-party injuries or property damage, particularly during inspections and open homes.
Case Example: A tenant injured during a property inspection received a $20,000 compensation payout, fully covered by the agency’s policy. - Cyber Insurance
Protects against the financial and reputational fallout of data breaches and cyber attacks.
Case Example: After a ransomware attack exposed client details, the policy covered the ransom, data recovery, and client notifications. - Business Package Insurance
Covers office premises, equipment, and business interruption following theft, fire, or vandalism. - Management Liability Insurance
Protects directors and officers from claims related to alleged mismanagement or employment disputes. - Workers Compensation Insurance
Provides financial and medical support for employees injured on the job while shielding employers from liability.
The Real Claims Agencies Face Every Day
Claims in the real estate sector aren’t rare—they’re recurring and costly:
- Property Mismanagement: Failing to address repairs, mishandling bond refunds, or disputes over rental increases.
- Misrepresentation: Allegations of misleading property details, such as inflated rental potential.
- Slip-and-Fall Injuries: Inspections and open homes frequently result in injury claims, especially during poor weather.
- Cyber Incidents: From phishing scams to unauthorised system access, agencies are frequent cybercrime targets.
Recognising these patterns can help your agency implement stronger risk management strategies and minimise claim exposure.
Strengthen Your Agency’s Protection
To keep your agency secure, consider these steps:
- Review Policies Regularly: As your business evolves, so do your risks. Annual reviews ensure your coverage keeps pace.
- Work with Specialists: Engage an insurance broker who understands the unique challenges of real estate agencies.
- Prioritise Risk Management: Invest in staff training, robust maintenance systems, and clear communication with clients to prevent claims before they happen.
Why Proactive Insurance is Non-Negotiable
Real estate is a fast-moving industry with high stakes. A proactive approach to insurance isn’t just smart—it’s essential. At KBI, we specialise in protecting real estate agencies with tailored insurance solutions that address your unique challenges. From mitigating cyber risks to covering injury claims, our expertise ensures your agency can face the future with confidence.
Get in touch today to secure your peace of mind and protect your business from the unexpected. Together, we’ll build a robust insurance program that’s as dynamic as the real estate industry itself.
Disclaimer:
This blog article has been prepared by KBI Pty Ltd for informational and educational purposes only.
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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UNDERSTANDING THE COMMON RISKS
| • Inferior Batteries
• Improper Use and Charging | • Incorrectly Installed Batteries
• Charging Locations, Especially in Summer
|
Inferior Batteries:
| Cheap and substandard lithium-ion batteries flooding the market pose a significant risk to businesses. To cut costs, some manufacturers compromise on quality, leading to a higher likelihood of malfunctions and fires. | Businesses must prioritise purchasing batteries from reputable suppliers, ensuring they meet safety standards and certifications. |
Improper Use and Charging:
| A crucial factor contributing to lithium-ion battery fires is the improper use and charging practices. Overcharging, undercharging, or using incompatible chargers can lead to overheating and, ultimately, a fire. | Businesses should educate their employees on the importance of following manufacturer guidelines for charging and using lithium-ion batteries. |
Dropped or Damaged Batteries:
| Physical damage to lithium-ion batteries, such as drops or impacts, can compromise their internal structure. Damaged batteries are more prone to overheating and, in extreme cases, may catch fire. | Implementing strict handling protocols and regular inspections can help identify and replace damaged batteries promptly. |
Incorrectly Installed Batteries:
| Improper installation of lithium-ion batteries can create short circuits, leading to thermal runaway and fires. Businesses must ensure that employees follow installation guidelines provided by the manufacturer. | If installation requires technical expertise, it’s advisable to enlist the services of trained professionals. |
Charging Locations, Especially in Summer:
| As the summer season approaches, the ambient temperature increases, affecting the battery’s performance. Charging batteries in hot environments can accelerate the aging process and increase the risk of thermal events. | Businesses should designate well-ventilated and cool areas for charging, minimising the likelihood of fires during the warmer months. |
MITIGATING THE COMMON RISKS
| • Quality Batteries
• Employee Training
• Fire Safety | • Regular Inspections and Replacement Schedule
• Protocols for Installation
• Optimal Charging Environments and Procedures |
Invest in Quality Batteries:
| Prioritise purchasing lithium-ion batteries from reputable suppliers with a proven track record in safety and reliability. While it may be tempting to cut costs, investing in quality batteries is a long-term strategy for risk mitigation. | It’s also important to discontinue the use of a battery if it has been involved in an impact or dropped even if they are quality ones. |
Employee Training:
| Conduct regular training sessions for employees on the proper use, charging, and handling of lithium-ion batteries. | Emphasise the importance of following manufacturer guidelines and promptly reporting any damaged or malfunctioning batteries. |
Fire Safety:
| It is recommended to have a foam extinguisher on hand, if it is safe to do so, to control and extinguish small fires as a Lithium-Ion battery fire are complex and there are very few effective means to extinguish them quickly and safely. | For larger fires, or battery setups, it is recommended to call Triple Zero straight away, do not try and fight the fire yourself. Reports suggest that up to 150,000 litres of water is required to extinguish a battery fire. Additionally, due to the chemistry of a lithium-ion battery, there is a risk of re-ignition of the fire. |
Regular Inspections and Have a Schedule to Replace Batteries Regularly:
| Implement a routine inspection schedule to identify and replace damaged or aging batteries and charging stations/ports. This proactive approach can significantly reduce the risk of fires caused by compromised batteries or faulty charging stations.
Regularly inspect batteries and dispose of any batteries that show any signs of swelling, leaking, or venting of gas. Ensuring that they are disposed of in an appropriate way, as they are often the cause of rubbish truck fires as well. | Replace batteries regularly, following the manufacturers recommendations.
It is also very important to dispose of used batteries correctly.
|
Strict Protocols for Installation:
| Establish clear protocols for the installation of lithium-ion batteries. | Ensure that employees follow these protocols diligently or enlist the services of professionals for installations requiring technical expertise. |
Charger(s) Installation and Location:
| Safer charging location: Especially for EV charging stations (but applicable to most scenarios), install chargers in areas that emergency services can easily access. | • Outdoor or indoor, the recommended distance from combustible materials is 10 meters.
• Charging systems should be installed by a certified/authorised company.
• Electrical circuit should be dedicated to the chargers, separated from the general main, and fitted with circuit breakers and surge protection. |
Optimal Charging Environments and Procedures:
| Designate well-ventilated and cool areas for charging lithium-ion batteries. Consider implementing charging stations with temperature controls, especially in areas prone to higher temperatures during the summer.
• Don’t charge anything overnight, or whilst you are away from the home or business premise. Charge the item and unplug after it has been completely charged.
• Store them in an area which is not exposed to direct heat.
• Only charge on non-combustible surfaces and away from combustible items. (For example, having the charger in the garage near the jerry can of fuel for the lawn mower)
• Allow batteries to cool after use and before charging.
• If you are charging larger items, or multiple items such as multiple golf carts in the one shed, we would suggest to increase fire sprinkler systems in that area to assist in controlling the fire. | While lithium-ion batteries have become indispensable in the business world, understanding and mitigating the associated risks is crucial. By investing in quality batteries, providing thorough employee training, conducting regular inspections, enforcing strict installation protocols, and optimising charging environments, businesses can significantly reduce the likelihood of lithium-ion battery fires. As we approach the summer season, taking these precautions becomes even more critical to ensure the safety of your business premises and personnel. |
Disclaimer:
| This blog article has been prepared by KBI Pty Ltd for informational and educational purposes only.
The purpose of this article is to raise awareness about the potential fire risks associated with lithium-ion batteries. However, it is important to note that the content presented in this article should not be considered a definitive guide or a substitute for professional advice. This article does not constitute professional advice, and readers should independently verify and confirm any information presented herein. KBI Pty Ltd does not endorse or guarantee the accuracy or completeness of the information provided in this article. | The information provided in this article is intended to be general in nature and does not account for the specific circumstances or configurations of individual devices or systems. Please consult with qualified professionals, such as electricians, engineers, or other relevant experts, to assess and address the specific risks associated with lithium-ion batteries in their particular applications. KBI Pty Ltd disclaims any liability for any direct, indirect, or consequential loss or damage arising from reliance on the information provided in this article. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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Understanding Business Interruption Insurance: A Necessity, Not a Luxury
| Business interruption insurance is designed to protect companies from the financial fallout of unexpected disruptions. It typically covers the loss of income that a business may suffer following a covered event, such as a natural disaster, equipment failure. This type of coverage can extend beyond just direct revenue loss, encompassing additional expenses incurred to minimise the impact of the interruption.
The policy aims to compensate the insured for the income lost during the period of interruption, helping to cover ongoing expenses like rent, salaries, and other fixed costs. Additionally, business interruption insurance may include a minimum starting time clause or a specified waiting period (for example 48 or 72 hours), ensuring that the coverage is activated only after a certain duration has passed or when a significant disruption is officially reported. | So while the incident may still need to meet a conditions for policy coverage, it is a very timely reminder of the necessity for scenario planning, and to ensure business interruption is an essential component of a comprehensive risk management strategy. By identifying potential threats and developing response plans, businesses can significantly reduce the impact of unexpected events. In the case of a telecommunications outage, for instance, having alternative communication channels and remote work capabilities can help mitigate the disruption. |
The Ripple Effect of Unforeseen Events
| Businesses also need to recognise that the impact of disruptions can extend beyond immediate operational challenges. Customer trust, reputation, and market share can be at stake. This underscores the need for businesses to conduct thorough risk assessments and integrate business interruption insurance into their overall risk management framework. | Moreover, scenario planning should not be a one-time effort. As the business landscape evolves, so do potential threats. Regular reviews and updates to contingency plans ensure that companies remain resilient in the face of emerging risks. |
Investing in Resilience
| At KBI, we exist to empower businesses to navigate the complex landscape of risk. The Optus outage is a timely reminder for companies to invest in resilience through comprehensive risk management and business interruption insurance. The cost of being unprepared for unforeseen events can be far greater than the investment in proactive risk mitigation. | Businesses that take the initiative to assess their vulnerabilities, develop robust contingency plans, and secure adequate insurance coverage will be better positioned to weather the storms of uncertainty. In a world where connectivity is non-negotiable, safeguarding against business interruptions is not just a prudent choice; it’s a strategic imperative for long-term success. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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Will a Potential Recession Reduce My Premiums?
| During times of economic uncertainty, such as a potential recession, people often wonder if insurance premiums will decrease. While recessions can impact various aspects of the economy, including insurance markets, the relationship between recessions and premiums is complex. It is important to note that there is no one-size-fits-all answer, as the impact on premiums can vary depending on several factors.
Several key factors influence insurance premiums during economic downturns. First, recessions can often lead to reduced economic activity and decreased demand for certain types of insurance coverage, which may result in decreased premiums for those specific lines of business. | However, this potential reduction in premiums may not be uniform across all insurance products, as some coverages may experience increased risks and claims during economic downturns, leading to potential premium increases.
Insurance companies also consider their own financial stability and risk management strategies during economic downturns. They may adjust their underwriting practices, tighten eligibility criteria, or increase premium rates to mitigate potential losses and maintain profitability. |
Why Are Insurance Premiums Continuing to Rise?
| In recent years, insurance premiums have experienced a consistent upward trend. Several factors contribute to this rise in insurance costs, impacting businesses across various industries.
One significant factor is the increased frequency and severity of claims. Technological advancements, changing business landscapes, and evolving risks have led to a higher likelihood of insurance claims being filed. Catastrophic events, natural disasters, and the growing impact of climate change have also contributed to an uptick in insurance claims, resulting in higher premiums to cover potential losses.
“One significant factor is the increased frequency and severity of claims.” | Market conditions and competition also play a role in rising insurance premiums. Insurance companies operate in a dynamic market influenced by factors such as interest rates, investment returns, and regulatory changes. In a competitive market, insurers may adjust their rates to ensure profitability and maintain financial stability.
The impact of natural disasters and climate change cannot be overlooked. The rise in extreme weather events and their devastating consequences have put additional strain on insurance providers. The increasing costs of property damage, business interruption, and liability claims related to climate-related events have necessitated adjustments in premium rates to adequately cover these risks.
Changes in underwriting practices and risk assessment methodologies have also contributed to rising premiums. As insurers gain a better understanding of emerging risks and their potential impact, they adjust their underwriting criteria and pricing models accordingly. This focus on risk-based pricing ensures that premiums accurately reflect the specific risks associated with each insured business. |
Proactive Approach to Rising Insurance Premiums
| While rising insurance premiums may present challenges for businesses, there are proactive strategies to mitigate their impact and optimise insurance costs.
One essential strategy is implementing proactive risk management measures. By identifying and addressing potential risks within your business operations, you can reduce the likelihood of claims and demonstrate to insurers that you have effective risk mitigation practices in place. This can help in negotiating more favourable premium rates.
Maintaining a strong loss history is another key factor. Insurance companies assess your claims history when determining premiums. By demonstrating a history of responsible risk management and minimal losses, you can showcase your commitment to safety and responsible business practices, which may result in more competitive premium rates. | Engaging in strategic insurance program design is crucial in mitigating the impact of rising premiums. Working with an experienced insurance broker can help tailor an insurance program that aligns with your specific needs and risk profile. By assessing your business risks, evaluating coverage options, and leveraging industry expertise, a skilled broker can negotiate on your behalf to secure the most favourable terms and competitive premiums.
Exploring alternative risk financing options is another avenue to consider. This may include self-insurance, captive insurance, or risk retention groups. These alternative methods allow businesses to retain a portion of the risk and have more control over their insurance costs. However, it’s important to carefully evaluate the feasibility and potential risks associated with these options in consultation with an experienced insurance professional. |
Partner with KBI for Effective Premium Management
| Partnering with KBI, a specialist insurance brokerage, is a strategic choice for effective insurance management.
Because KBI are specialists brokers in a specific industries, our specialised experience and expertise equips us to assist you in seeking suitable premium rates for your business.
At KBI, we understand that every business is unique and has specific insurance needs. Our dedicated team of insurance brokers will work closely with you to understand your risk profile and design customised insurance solutions tailored to fit your needs. We have deep industry knowledge and access to a wide network of insurance providers, allowing us to be more effective in negotiating for more competitive premiums. | Our commitment to proactive guidance and support in risk management sets us apart. We will assist you in implementing effective risk mitigation strategies, ensuring that your business is well-prepared and resilient against potential threats. In the event of an incident, our swift incident response and claims management services will help minimise the impact on your business operations and facilitate a smooth claims process.
Staying informed is crucial in navigating the insurance landscape. At KBI, we provide regular product updates and industry insights through our communications channels, including our website and blog. We keep you informed of changes in the insurance market, emerging risks, and best practices to empower you with the knowledge needed to make informed decisions. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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Why Does My Insurance Broker Require a Letter of Appointment (LOA)?
| The Letter of Appointment (LOA) is a document that formally appoints a broker to oversee the insurance matters of a business entity. It can encompass a specific set of insurance policies or all policies, thereby replacing the previously assigned broker for those policies. | Once the new insurance broker receives the Letter of Appointment, the broker becomes eligible to receive fees and commissions for their services (in accordance with the Australian Financial Services licensing requirements). The Letter of Appointment explicitly expresses the organisation’s intention to transfer the existing business, including credit control and claims maintenance, to another broker. |
Does Working with Multiple Brokers Help or Hinder You?
| Working with multiple brokers can be a double-edged sword. On one hand, it may seem beneficial to have different brokers specialising in various insurance areas to cover all your needs comprehensively. However, this approach can lead to multiple challenges if not managed properly. It may result in overlapping coverage, gaps in your insurance program and potential conflicts or miscommunications between insurers. Insurers are often put off a risk if they receive multiple quote requests from different brokers. | Additionally, maintaining relationships with multiple brokers requires extra time and effort on your part. Coordination among different brokers can become cumbersome and may hinder the overall efficiency of your insurance management. Therefore, careful consideration and strategic planning are crucial when deciding whether to engage multiple brokers. |
Finding the Right Balance: Optimising Your Broker Relationships
| To strike the right balance in your insurance broker relationships, it’s important to evaluate your specific needs and goals. Start by assessing the complexity and diversity of your insurance requirements. If you have a range of insurance needs across different areas, such as property, liability, and professional indemnity, partnering with a single comprehensive insurance brokerage may be advantageous. This approach allows for cohesive risk management, streamlined communication, and the possibility for bundled coverage and potential cost benefits. | However, in certain situations, engaging specialised brokers for niche areas of coverage might be appropriate. For example, if you operate in a highly specialised industry with unique risks, such as technology, working with brokers who possess deep knowledge and expertise in those fields can be invaluable. These specialised brokers can provide tailored advice, customised solutions, and access to specialised insurance markets that cater specifically to your industry’s needs. |
The Role of a Trusted Insurance Broker
| A trusted insurance broker plays a pivotal role in managing your insurance portfolio effectively. They act as your advocate, leveraging their expertise and industry relationships to ensure you have great coverage on the best possible terms. A reliable broker will take the time to understand your business, assess your risks, and tailor insurance solutions that align with your goals and budget. | They provide guidance throughout the insurance process, from initial policy selection and placement to ongoing policy reviews, claims management, and risk mitigation strategies. By working with a trusted broker, you gain peace of mind, knowing that your insurance needs are in capable hands. |
Partnering with KBI: Your Comprehensive Insurance Solution
| At KBI Specialist Insurance Brokers, we understand the importance of building strong relationships with our clients and providing comprehensive insurance solutions that meet their unique needs. As a trusted insurance brokerage, we have a team of expert brokers who possess extensive knowledge and experience across various industry areas. Whether you require coverage for property, public liability, professional indemnity, or other specialised areas, we can guide you through the insurance process and help you secure the right policies.
Our dedicated brokers will work closely with you to assess your risks, understand your goals, and design tailored insurance programs that address your specific needs. We take the time to explain policy details in clear, understandable terms, ensuring that you have a thorough understanding of what you are buying. With our in-depth industry expertise and access to a wide network of insurance providers, we can secure competitive quotes and negotiate on your behalf to obtain the best coverage on the most favourable terms. | At KBI, we are committed to staying up to date with the latest developments in the insurance industry. We continuously monitor changes in policies, regulations, and market trends to provide you with timely updates and advice. Our proactive approach ensures that your insurance program remains relevant and effective as your business evolves.
Furthermore, our dedicated claims management team is ready to assist you in the event of a claim. We understand the importance of prompt and efficient claims handling, and we will work tirelessly to advocate for your interests and ensure a smooth claims process. Our strong relationships with insurers and incident response teams enable us to provide the necessary support during challenging times, such as cyber incidents or other unexpected events. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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Insurance for bakeries
What Does Bakery Equipment Breakdown Insurance Cover?
| Equipment breakdown insurance can cover sudden and accidental breakdowns of nearly all of the equipment bakers use on a daily basis. This can include the following:
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In addition, one of the most important additional insurance cover options for a baker’s consideration is spoilage of stock, which will affect most bakeries regardless of size. |
What Doesn’t Bakery Equipment Breakdown Insurance Cover?
| Like all insurance policies, there will be aspects to consider where coverage will not be available, and some of the typical exclusions will include: |
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How Does Equipment Breakdown Insurance Work?
| Equipment breakdown insurance works by reimbursing you for the cost of repairing or replacing your broken equipment.
| If it ever comes time to make a claim, like with all insurance policies, there will be certain pieces of information the insurer will require, including (but not limited to) proof of the damage, a repair invoice, or a receipt for a new piece of equipment/replacement food stock. |
Cover for Spoilt Stock
| The addition of spoilage of stock cover can also help reduce anxiety when, for example, a fridge breaks down and ruins your refrigerated items. This bakery insurance coverage ensures you are adequately compensated to replace the damaged stock. | Brief example – you are a small to medium sized bakery and rely heavily on your commercial fridge to store food items. Overnight, your fridge fails, and the next day you must throw out thousands of dollars’ worth of spoiled items. Having the right equipment breakdown insurance policy in place would assist as it would pay for repairs to the fridge and would also reimburse you for the cost of the spoiled items. |
But what about Business Interruption?
| It can be the case that when a key piece of machinery breaks down, it’s more than just a simple fix-it job. Quite often, as a result of machinery breakdown, your profits may be adversely affected as well as the ability to meet payroll. There might also be additional operational costs during the repair or replacement of the machinery. | The good news, some machinery breakdown insurance will extend to include business interruption, although the extra cover will typically attract a higher premium. Your specialist insurance adviser will be able to assess the available options, and not all insurers will be the same. |
Reducing Risk For Your Bakery
| Whilst equipment breakdown insurance is a fantastic way to address one of the challenges in running a bakery; it is also essential to implement a few basic risk management strategies to keep your operation running smoothly:
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How Do I Get Bakery Insurance?
| If you’re a baker, then you know how vitally important your equipment is – it’s the difference between trading or not.
KBI has partnered with The National Baking Industry Association to provide tailored and discounted insurance for bakeries. | To get a customised insurance quote tailored for bakeries, click here. |
We are a specialist insurance brokerage with an emphasis on adding value to our clients by helping them make an informed decision. Our approach combines that of an insurance broker and consultant, where we focus on providing expert advice to our clients while customising their insurance program and risk management solutions.
Since starting in 2013, KBI is constantly growing and becoming a leader in the Australian market. Our primary point of difference is that we don’t try to be all things to all people. We work in niche areas, where we can tailor an offering, advice and broker support to meet the specific area’s needs.
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