risk management – general insurance...risk management – general insurance author ashley...

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Risk Management –

General InsuranceKylie Dennis & Tony Hefferan

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• Insurance Overview

• Critical & Emerging risks

• How can a broker support you

Agenda

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Insurance Overview

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Critical & Emerging risks• Business Interruption

• Management Liability

• Cyber Insurance

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Business Interruption

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• Many business that do not take out business

interruption insurance struggle to stay in

business

• Covers loss of profit following an insured

event under the policy

• Additional Increased Costs of Working

• Claims Preparation Costs

Business Interruption

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Management Liability

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Major Issues Facing SME’s

• Failure to provide a safe work place

• Adequate training/inductions

• Not following correct processes (EPL)

• Fair Work Act

• Tax Audit – ATO, SRO/Risk Reviews

• Big Claims for Small Companies

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Management liability insurance protects companies and their directors and officers against claims arising from the management of the company.

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• Directors and Officers Liability

• Employment Practices Liability

• Statutory Liability

• Crime Insurance

• Tax Audit Insurance

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© 2019 ARTHUR J. GALLAGHER & CO (AUS) LIMITED. | AJG.COM.AU

© 2019 ARTHUR J. GALLAGHER & CO (AUS) LIMITED. | AJG.COM.AU

Cyber Security

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What is Cyber Risk?Unauthorised access to a computer system leading to

a breach of privacy

How Does it Happen?• Ransomware

• Phishing

• Distributed Denial of Service (DDoS)

• Lost Phone, USB, Theft

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Cyber Crime Insurance

Will not stop breaches from happening but can cover costs arising from that breach

Every business should consider this as an option

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What's Covered

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▪ Privacy protection is important to an organisation's reputation, and must be designed into processes and systems

▪ Criminals can breach your system by technical weakness, human weakness or brute force

▪ Cyber security is a corporate governance issue, not just an IT issue – appropriate risk management, understanding of regulatory obligations, stress testing

▪ Cyber intrusions can create liabilities, imposing first party costs, and even stop your business dead in it’s tracks!

Key messages

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How can a broker

support you?

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• An insurance broker is a professional adviser who is an expert in insurance

and risk management.

• Brokers work on behalf of their clients, not for insurance companies, and

can be relied on to provide professional advice in your best interest.

• A broker will help you identify your individual and/or business risks to help

you decide the risks you will insure, and those you can manage in other

ways. They specialise in one specific type of insurance or industry, or they

may deal with many different types.

How can a Broker Support you?

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• Brokers are aware of the terms and conditions, benefits and exclusions and

costs of a wide range of competing insurance policies, so they are able to

help you find the most appropriate cover for your own circumstances.

• As well as arranging and placing cover with the chosen insurer on behalf of

their clients, brokers also act on behalf of their clients in the event of a claim

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Questions

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Kylie Dennis & Tony Hefferan