business insurance innovation

Business innovation – please call before you ‘pivot’

Business innovation and insurance implications

With COVID-19 disrupting businesses across Australia and beyond, many are pivoting and learning how to survive and in some cases even thrive in the new norm. Emerging demands and restrictions have led to many firms shifting their strategies with creative new services to remain operable. This has meant that it is no longer ‘business as usual’ for many, and here at Allsure we want to make sure that you’re checking in with your insurance broker about these changes to make sure you have the right insurance solution in place for your ‘new normal’.

From service to advice

One of the big areas of change is that businesses that have gone from service to advice. Invoque, a Geelong beauty and treatment service provider, is now taking online orders for skin treatment boxes and offering online tutorials to clients. Similarly, many players in the photography industry are moving from providing their in-person service to giving online classes and seminars to teach others a range of skills. In these cases, originally the businesses needed public liability insurance to protect them but switching to providing online classes and giving advice to others could mean that they’re now in need of professional indemnity insurance insurance instead.

From physical to virtual services

Many have also transformed their physical service offerings into virtual. Upstate and  Wonder Yoga are now offering live streaming video classes for members, bringing the expertise of the studio into the comfort of your own home. This can even open up a whole new audience of people who were previously too far away to attend classes. There’s a lot of important considerations when delivering fitness classes online, with businesses questioning whether they are covered by their insurance, what surface people are exercising on and its suitability or if the client has any potentially harmful obstructions.

For providers of virtual services, a lack of visibility of the client can prevent instructors observing a number of factors that could be a risk to the client’s health and safety. Many current fitness professional insurance policies will not extend to those operating from their residence/a home studio. It’s best to check that your professional indemnity insurance, public liability insurance and products liability insurance extend to your new online operations.

From in-store to home delivery

Physical stores are turning to delivery services in order to supply products to their customers and maintain their operations.

Prospect House in Richmond, Tasmania are offering decadent home ‘dining in’ packages – our Director, Melissa Donaldson-Hey took advantage of this experience firsthand – check out the incredible photo!

The Sun Bookshop in Yarraville has turned to delivering books by bike in the local area as more and more people stay home. Clients ring up and pay over the phone, or order online, and the book is delivered by a staff member usually the same day.

Deb Force’s bookshop is doing home deliveries. (ABC News: Jessica Longbottom)

We love hearing about and taking advantage of trying all these new innovative business ideas!

We just also want to make sure that you are aware of your new risks and any potential impact to your insurance programme. For example, switching to online payment methods could be a risk to some companies in terms of data breaches, seeing a potential need for cyber risk insurance. Whether deliveries be local or long-haul, transporting goods may require goods in transit insurance, to protect the value of the goods you transport should they be lost, damaged or stolen, and public liability insurance, in case you are involved in any accident involving the public. For your employees, you might need to consider or revisit your employers’ liability insurance.

Check in with your insurance broker

For any changes made to your business during these times, be sure to check in with us about these changes to make sure you have the right insurance solution in place. No matter how big or small the changes are, checking the impact of these on your insurance could save your business from unexpected risk or expenses.