Insurance Implications for Altered Operating Models: 3 Key Actions for Business
No items found.
Severe storms, devastating bushfires, hailstones the size of golf balls and a global pandemic - enterprises across Australia have faced a challenging six months to say the least. For many, securing long term survival has demanded rapid changes to operating models. We’ve seen bricks and mortar retailers shift to online trading tycoons, and boutique brewers reinventing their production to meet hand sanitiser shortages. Adaptation in all its glory!
While such measures taken by businesses have been nothing short of impressive, ‘innovation at pace’ can also place organisations under heightened risk. Via live webinar on May 21, Honan leaders Travis Wendt, Poppy Foxton and Brad Tymmons addressed Insurance Implications for Altered Operating Models, with 3 key recommendations as follows:
1. Revisit your risks - have they changed?
The pace at which businesses have adapted has also increased the potential for non-realised risks and exposures across (but not limited to) financial, regulatory, client service & engagement, technology and workplace. For example, a business shifting to an online trading platform must now address risks associated with cyber crime and threats, particularly the protection of customer and third-party information. Furthermore, with many workforces now operating remotely, businesses are legally required to extend their safe working environments; from an often previously ‘physical office setups’ only, through to stress management and mental health.
2. Review your current insurance program
It’s important to identify and understand the impacts of other key risks on the business. These risks aren’t always easy to identify, but the following offers a helpful framework to guide your initial audit:
3. Check your balance sheet
Balance sheet protection is critical to ensuring your operations can withstand a significant ‘insurable’ event, and should be supported by three tiers of capital: Equity, Debt and Risk (Insurance). In order to remain protected, business should review the adequacy of its balance sheet protection by way of:
Scenario testing: identify balance sheet vulnerability and weakness
Analysis: what are the financial consequences of a major insurable event?
Prioritise: pivot your insurance program to these identified risks, prioritising those with the greatest impact on the balance sheet.
We're with you all the way.
Through this webinar and supporting materials, we’re pleased to support businesses in maintaining adequate protection against risks, and building overall resilience. As always, we recommend close consultation with your broker to ensure your cover is truly fit for purpose. To learn how Honan can further support your business, please reach out at any time:
Travis Wendt– Head of Corporate Insurance and Risk Solutions
Protecting cash flow, guarding against late and/or non-payments from customers, and securing your company’s own creditworthiness is critical to business sustainability. This article looks at two key ways you can limit your liquidity risks: credit reports and trade credit insurance.
Honan Insurance Group Pty Ltd (Australian Financial Services Licence no. 246749, ABN67 005 372 396) is an insurance broker acting as agent for insureds and intending insureds. Honan is not an insurer. The information on this website has been prepared without taking into account your objectives, financial situation or needs. Any advice provided on this website is general advice only. Before making a decision to purchase an insurance policy, please read the relevant Product Disclosure Statement to make sure the policy is right for you. Insurance cover is subject to policy terms and conditions including policy limits and exclusions.
From time to time, Honan may act under a binder arrangement with an insurer. When this happens, Honan is authorised by the insurer to issue certain insurance policies on the insurer’s behalf. When Honan does this it acts as the agent for the insurer and not for any insured person. We will let you know when we are acting under a binder. You can view the Product Disclosure Statements for the insurance policies we issue under a binder arrangement here. A copy of the Target Market Determination for each policy is also available on this website.
Copyright 2022 Honan Insurance Group Pty Ltd ABN: 67 005 372 396. All rights reserved.