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January – February 2014

Welcome message _____________________________________________

Happy New Year and welcome to the January-February 2014 issue of the

Insurance Insight newsletter!

After a well-earned break, I hope you are refreshed and raring to tackle

the opportunities and challenges that a new year in business is sure to

bring.

If one of your resolutions for 2014 is to get on top of your email inbox,

you’ll find some helpful hints in this issue. We also offer some

suggestions to improve business cash flow and explore how minor

maintenance issues can lead to major liability.

I hope you enjoy this edition of Insurance Insight and look forward to

keeping you up-to-date with the latest tips and industry news throughout

the year.

Jeff Adams

Managing Director

If you wish to opt-out of receiving future newsletters simply click on the link at the bottom of this email.

News in brief ____________________________________________

General Manager of EBM Insurance Brokers, Ward

Dedman, has been appointed Chairman of the National

Insurance Brokers Association’s Divisional Committee for

Western Australia – a significant industry achievement.

Asia Pacific CEO of Dual International, Damian Coates, has

warned larger SMEs that management liability insurance is

not a “panacea” for all risks and can potentially leave

businesses exposed. Larger SMEs should consider separate

insurances for areas such as cyber crime and statutory

liability, avoiding the risk of being underinsured if a number

of incidents occurred in the same time frame, he argued.

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More than two years after it was wrecked off Italy, the Costa Concordia cruise ship will be refloated and

towed away this year, at an estimated cost of US$799 million, in what’s said to be the biggest-ever marine

salvage operation.

Storms top the list of natural disasters in Australia between 1967 and 2011 with a cost of $22.5 billion in

losses. According to Insurance News magazine, hail cost over $16 billion while bushfires and floods each

clocked in at over $5 billion and earthquakes at $3.45 billion.

The Insurance Council of Australia has launched a new website to help Australians understand personal

insurance and prepare for natural disasters, in light of research showing that four out of five of us are

under-insured when it comes to our homes and possessions.

Company leaders in NSW can step into 2014 reassured after a case in the NSW Court of Appeal. The

decision means directors and officers’ liability insurers will be able to advance money to fund company

leaders’ legal costs in the event of a law suit.

Congratulations to EBM Insurance Brokers’ Natalie Wasiun who, together with co-organiser Janelle

Maroni, raised more than $26,000 for cancer. The “Girls Night In” event, held in Kalgoorlie late last year,

brings the pair’s fundraising total over the past five years to more than $80,000.

Congratulations also to Ray Jackson and Damian Adams, both of who were noted as Students of

Excellence by the NIBA College following their high quality of work in attaining their Diploma’s of

Insurance Broking.

How to improve your business cash flow ____________________________________________

Managing cash flow is one of the biggest headaches for many small and medium businesses.

Expenses like wages and rents are regular and neither employees nor landlords are prepared to wait for their money until that big cheque you have been expecting finally arrives.

Here are some tips to help improve cash flow:

Don’t have your head in the sand – have both a realistic and worst-case cash flow scenario mapped out for the next three months.

For new customers, assess their risk and negotiate the tightest payment terms you can – and, if possible, ask for a deposit up front.

Set limits on how much credit you will allow each customer.

Offer your customers the opportunity to pay on the spot when you perform a service by setting up mobile payment systems.

When chasing debts, use a set escalation process (email, phone call, legal letter etc). Make sure you ask your debtor to commit to paying on a specific date rather than just calling for a general chat.

Send out invoices as quickly as you can.

Email your customer a reminder just before an invoice falls due rather than waiting until it’s overdue to chase them.

Offer small discounts to customers who pay ahead of time.

Sell gift cards for your services – you get the money early before the customer requires the service.

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Sell vouchers for customers to use your service multiple times (manicures, haircuts, massages, car services etc) – again, you get all the money up front, in return for giving them a small discount for volume.

Diversify your customer base across a number of clients and industries if possible.

Consider insurance premium funding – allowing you to pay by the month rather than annually.

Don’t pay your suppliers early unless you get a discount for doing so – and, if possible, negotiate longer payment terms.

Try to move clients who work with you on a project-by-project basis to a more regular retainer relationship.

Raise your prices – particularly if your competitors have already done so.

Consider leasing equipment instead of buying it.

If you’re over 55, consider a Transition to Retirement Pension to reduce your wages bill while still having the same take home income.

Shop around so you get the lowest possible interest rate on any debt and the highest possible interest on your business banking account.

Consider invoice finance, in which another company directly or indirectly takes over your invoice to a customer, giving you the money sooner in return for a cut of the total amount.

“Minor” maintenance issues can lead to major liability _____________________________________________

The thought of a public liability lawsuit is enough to give most

business owners sleepless nights.

In public liability cases, a person injured on your premises may

be entitled to compensation if they can show that your business

breached its duty of care.

Common injuries include slips, trips and falls; people hit by

falling objects; and stress and anxiety resulting from violent or

dramatic experiences, such as armed hold-ups.

Even what appear to be minor maintenance issues can lead to

major damage claims.

In a recent NSW case, for example, Helen Wurth was awarded

more than $450,000 for foot and knee injuries suffered when

she stumbled into a partially covered drain, only 15cm deep, in

the driveway of Bathurst’s Knickerbocker Hotel.

The hotel was aware that a section of grate was missing but had

failed to take temporary measures such as signage, barricading or covering the hole.

A replacement grate was ordered two days after Mrs Wurth’s fall – and before she lodged her injury claim –

but by then the damage had been done.

The case is yet another reminder that public safety should be top priority for any business – and of the need

for adequate insurance.

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How to get on top of your inbox ____________________________________________

If there’s anyone likely to receive a ton of

email, it’s Jeff Weiner, the CEO of

professional networking group LinkedIn.

Jeff uses email to communicate with more

than 4,300 employees, not to mention being

the target of countless marketers and

attention-seekers.

In a recent article, he outlined his strategies for

reducing the demands of his inbox.

Here’s a summary:

1. Send fewer emails out and you’ll get fewer back. 2. Mark non-urgent emails you’d like to read later as ‘unread’ so you can easily come back to them. 3. Create a routine for dealing with emails and stick to it. 4. Draft your emails carefully so they are unambiguous and don’t get responses seeking clarification. 5. Only put the person/people you want a direct response from on the “To” line – “CC” everyone

else. 6. Let people know you’ve received their email with a short message to prevent follow-up emails

which are essentially the same. 7. Don’t have sensitive or antagonistic discussions on email.

Black box for cars to drive change ____________________________________________

Australia’s first “black box” system for

cars, Insurance Box, has been

introduced by QBE, with insurance

premiums varying based on the skill

with which the car is driven.

Drivers are given a score out of five

and tips on how to improve – with text

message reminders if they step out of

bounds.

The system could be of interest to

everyone, from employers whose staff

drive on the job, to the parents of P-

platers, and those who reckon they’re

better at driving than most.

Unfortunately, even the black box would be challenged to counter some of the unsavoury behaviour on our

roads, as the study below reveals:

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World’s weirdest insurance policies and claims ____________________________________________

From the bizarre to the ridiculous, the world of insurance

has many colourful stories and some absurd myths. Here

are a few:

Marijuana insurance

Despite marijuana’s legality being a grey area in the US –

illegal under national law but legal in some states for

medicinal use – insurers like MMD Insurance are

competing to cover crops, “dispensaries” and cookie

“bakeries”. Insurance typically covers fire and theft – but

excludes losses due to poor gardening skills.

Cold feet insurance

US Fireman’s Fund Wedsure offers “innocent party financiers” insurance to protect parents against risk if

their children get cold feet and pull out of a wedding. The policy options include cover for host liquor

liability, absconding photographers and more.

Multiple births

We all know having kids can be a bit of a lottery but in the UK you can take out insurance against the risk

of having twins or triplets – as long as there isn’t fertility treatment involved.

Premature reports on demise of “Self”

Reports that an insurance claim had been made by advertising executive Charles Saatchi for the loss of a

frozen sculpture accidentally defrosted during a kitchen renovation appear to be incorrect – as the

sculpture, titled “Self” and made by artist Marc Quinn from his own frozen blood, was later sold.

Crazy coconut

Media reports that UK travel agency Club Direct had insurance to cover injuries from falling coconuts have

yet to be substantiated. While this bizarre risk may fall under the heading of “personal accident”, no

coconut cover is detailed on their current website. Meanwhile, doubt has also been cast on a media release

claim that coconuts kills 150 people a year.

Anger on the roads – a study

An American study of 1000 parents found men and women behave differently when it comes to expressing

anger behind the wheel.

Women were more likely to flip the bird or swear in front of their kids, while men “led” the way in other

questionable practices. Here’s what they admitted:

Hooting at slow drivers – 43 per cent of men and 39 per cent of women.

Swearing in front of their kids while driving – 44 per cent of women and 30 per cent of men.

Flipping the bird – 31 per cent of women and 27 per cent of men.

Speeding up to prevent another driver passing– 28 per cent of men and 25 per cent of women.

Deliberately tailgating slow drivers – 21 per cent of women and 16 per cent of men.

Chasing after a car that cut them off to glare at/flip off the other driver – 11 per cent of men and 7 per cent of women.

Keying someone’s car – 7 per cent of men and 3 per cent of women.

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Pioneering in the Pilbara ____________________________________________

Meet Grant Homann, a member of the EBM

team pioneering insurance broking services in the

Pilbara.

Grant, who has almost a decade’s experience in

insurance, joined EBM’s Karratha office shortly

after it became the town’s first such business

when it opened in 2012.

The searing heat and cyclones of Western

Australia’s north are a far cry from the weather in

his former home, in Auckland’s North Shore

City, although the difference is less marked from

his native South Africa.

Grant and his colleague Suzanne Kimpton are currently involved in managing claims in Karratha, Wickham

and Roebourne resulting from the recent Cyclone Christine.

“Our clients were relatively lucky. There are lots of trees down in Karratha and it looks a mess but there

wasn’t too much real damage,” says Grant, an Account Manager.

“There are still big things happening in Karratha – and it’s a real advantage having an office in town and

being able to sit down and talk to people face-to-face,” he says.

Outside work, Grant enjoys the outdoor lifestyle – fishing, camping, boating and going to the beach – and

spending time with his daughter and fiancée.

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Contact us ____________________________________________

EBM Insurance Brokers, with offices in New South Wales, Victoria, Queensland and Western Australia, delivers local expertise combined with the national resources of one of Australia's largest insurance broking companies.

Email us at ebm@ebminsurance.com.au or contact a local broker who can help you determine your insurance needs. Call 1300 INSURE (1300 467 873) for your nearest office:

Sydney Level 4, 151 Castlereagh Street, Sydney New South Wales 2000 Melbourne Suite 4/651 Victoria Street, Abbotsford Victoria 3067 Perth Office 105 Outram Street, West Perth Western Australia 6005 Gold Coast Level 8/64 Marine Parade, Southport Queensland 4215 Bunbury 4 Victoria Street, Bunbury Western Australia 6230 Kalgoorlie 47-49 Boulder Road, Kalgoorlie Western Australia 6430 Geraldton 65A Forrest Street, Geraldton Western Australia 6530 Karratha Suite 122, The Pelago West Karratha Western Australia 6714 Sale 164 Raymond Street, Sale Victoria 3850 Important note: Our advice is provided for your general information and does not take into account your individual needs, you should read the respective insurers product disclosure statement which we can provide upon request before taking out cover.

All Enquiries: 1300 INSURE (1300 467 873) | ebm@ebminsurance.com.au | www.ebminsurance.com.au Sydney | Melbourne | Perth | Gold Coast | Bunbury | Kalgoorlie | Geraldton | Karratha | Sale Affiliated Offices: China, Hong Kong, Indonesia, Macau, Malaysia, Philippines, Singapore, Taiwan, Thailand, Lloyd's Coverholder Elkington Bishop Molineaux Insurance Brokers Pty Ltd | AFSLN 246986 | ABN 31 009 179 640 | Est 1975