Regardless of your individual opinion on the #MeToo movement, it continues to be headlining news and is causing policymakers and business leaders to change the way they view things like bullying, discrimination and harassment. All of these factors can result in an increase in employment and reputational risk, so we thought it was worth examining how these trends could impact our clients, their risk management practices and insurance solutions.
If you had a physical business with a shopfront you probably wouldn’t hesitate or think twice about getting insurance to cover your assets and customers. When you have an online business the potential risks that can occur are less obvious compared to that of a physical shop.
So what are some of the insurance risks of an online store?
- Product Risk – A customer could be caused harm or even death as a result of using your product.
- Privacy/data breach – if the privacy of your customers or website visitors is compromised you could get sued.
- Theft or damaged goods – whether the goods are stored from your home business, personal storage or otherwise, you may find yourself at a loss if you don’t insure your products and they get stolen or vandalised.
- Natural disasters – could cause damage to your goods or property you operate from.
These are some examples that could happen to an online business if you’re underinsured (or worse don’t have any insurance at all). Now that you know about the ways you be affected without the right insurance in place, there are also very different types of insurance solutions that cover different elements of your online business. Your insurance solution could include product liability insurance, perhaps machinery breakdown or deterioration of stock or, more often a combination of a few different types of online business insurances.
“Online business insurance solutions aren’t just for online shops – it can also relate to online service businesses, such as virtual assistants! For these types of online businesses, solutions like business interruption and professional indemnity might be very important to consider,” said Allsure Insurance Director Melissa Donaldson.
Hopefully this blog has given you a good overview to start to understand online business insurance risks better, but you should speak directly to a professional insurance broker to figure out the best options for your business and your specific risks.
Talking to an insurance broker that specialises in online business insurance solutions will give you peace of mind that you’ve covered your bases, and nothing has gotten missed. Not all online businesses are alike, and neither are their insurance covers – your insurance is specific to what you do and it’s always best to speak to a professional first to get advice before buying your insurance solution.
Call the friendly team at Allsure Insurance today for an obligation-free quote, we’d love to learn more about your business! (03) 5278 6808
Recently Director Melissa Donaldson was lucky enough to cross paths again with Steve Sammartino.
She says “He’s a futurologist and all round cool guy. We are besties – we both have a life in Geelong, so that makes us besties. Oh and he did sign his book “The Lessons School Forgot” …with love.”
So what does Steve see for our future?
Steve was at the NIBA insurance conference, filling the audience in on what the future in insurance might look like.
He sees totally autonomous cars!
Cars that look after themselves. They are not just driverless, they book themselves in for servicing. They know when their best days are behind them, and program a new bundle of automotive joy to be delivered to replace them.
And what does this future technology mean for insurance?
So what does this mean for us? Who is being insured? How are they insured?
Do we need to even have insurance, with autonomous vehicles’ collision avoidance capabilities? Who is responsible if there is an accident? The car…? The manufacturer?
Did you know there are smart buildings?
They do more than just turn light on or the air-conditioning when in use and turn it off when no one is there. They will be able to send reports back on any issues, like leaks, and arrange them to be tended to.
I’d imagine if your building has these features your premiums will be better.
New technology allows business owners to track stock in their building, in their supply chain and even see what sells quickest and then the building/software can order new stock.
Those in insurance that define what kind of ‘risk category’ policy seekers belong in have traditionally used broad actuarial tables. Which means that often it would be about right, but in some cases people would be paying more or less than they necessarily should, based on their actual risk level. However, through using technology and all manners of devices, including GPS tracking of cars to the activity trackers on our wrists, we’ll be able to more accurately delineate groupings of risk, allowing products to be priced more competitively. All because we’ll have a more accurate idea of your actual level of risk!
There’s also interest for things like creating an app for on-demand insurance for one-off instances like borrowing your mate’s car. In today’s sharing economy, there’s been some take up of a peer-to-peer model of insurance to both create customised group coverage and incentivise positive choices through group rebates.
These are examples of just some of the new interesting innovation and use of technology that is becoming available. It will be exciting to see how it will shape insurance for the insurers and clients.
What does the term insurtech mean, anyway?
Insurtech refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a portmanteau of ‘insurance’ and ‘technology’ that was inspired by the term fintech (financial technology).
Aaron Donaldson, Director of Allsure Insurance (and Melissa Donaldson’s “awesome!” little brother) is a drone techno guru. He loves bringing the understanding of insurance and drone technology together. Coming soon are drones that can carry a person! What sort of insurance will we need then?
Drones are used extensively for insurers now, especially after events such as fires. They send in drones to areas people couldn’t access for days yet, to assess homes decimated in bush fires. Insurers had claims paid out, even before any person could physically assess the homes. It’s become a safer, faster and overall better solution to traditional assessment.
Insurance is all about risk, risk reduction, risk trade off, risk mitigation, risk transference and taking on the risk. Technology can help us do that better, faster and more easily than ever before.
As we say…”having the right insurance is no accident.”
Allsure Insurance’s Melissa Donaldson was pleased to be able to help a new client with insurance for her ‘tricky risk’.
Donaldson says: “The gorgeous Narelle found me in a women in business group that we’re both active in. Narelle’s business is Country Heart, which is actually a caravan, cafe and farm venue! She is super lovely and a joy to work with.”
The difficulty with difficult to place insurance risk
Narelle was having trouble with a reception venue that was being partially pedantic on their insurance cover for her coffee caravan, Frankie, that was to be in use for a wedding at the reception venue. Some businesses like food trucks and coffee caravans can pose a unique risk compared to the traditional bricks and mortar restaurants and cafes, due to their mobility and the risks that each changing location could serve up.
We looked after her cafe insurance and luckily, due to our network and our insurer partner relationships, we were able to offer an insurance solution for her caravan.
About Country Heart
Narelle’s parents own the biggest Brussels sprout farm in Victoria, which also has a huge spare hanger that Narelle set up as a wedding venue (here is a beautiful real life wedding that was held at the venue). She runs approximately 10 weddings a year, and is fully booked for the next wedding season. We’ve sorted her insurance for this venture too!
With our advice, support and insurance solutions, Narelle now has the peace of mind and ability to grow her business. Which she’s done! From one cafe, to the caravan, and now a wedding venue.
You can find out more about Narelle’s story here.
Do you have a unique ‘tricky risk’?
Are you having trouble getting insurance for your business or personal asset? Or perhaps you have insurance but it seems too expensive or doesn’t cover all your needs and leaves you exposed… Either way, why not get a free, no obligation quotation from Allsure Insurance? You’ve got nothing to lose but some risk, and you can gain cover and maybe even some $ savings!
Do you find travel insurance confusing and a bit of a hassle? Good news, there’s a new option on the market, TravelCard which is a real-time travel insurance just launched in Australia. AND, Allsure can help provide you with a TravelCard insurance solution – just ask!
About TravelCard Travel Insurance
How it works: you can purchase a TravelCard insurance solution, then you receive a card in the mail. Then, if anything goes wrong while you’re away, funds can be instantly transferred to your card. This means there’s no out-of-pocket expenses, no mountain of paperwork, and no waiting period.
To better understand how it works, here’s a story about the recent Lombok earthquakes and TravelCard’s response.
Corporate Travel Insurance & Personal/Leisure Cover
There are three types of TravelCard cover: Corporate travel insurance for business, leisure cover for individuals and ‘business class’ for employees which is new and unique.
Get TravelCard Travel Insurance
Talk to us to find out more and see if it could be a good solution for you or your business!
Want to quote and bind your travel cover right now? Just click here!
Note: you do not need to enter a broker code (that’s for a different type of policy). Any dramas, just contact us and we can assist.