Insurance - you get what you pay for

Running a business carries risk. Having appropriate and adequate insurance is essential for any business as it provides protection against specified risks which may otherwise have catastrophic consequences for the business.

However, as with many things in life, when it comes to insurance, you get what you pay for. For many businesses, insurance is viewed as a grudge purchase where the least cost policy is often seen as the best option. Cost is certainly important, but so too is ensuring that the policy provides the cover that your business needs.

Very few of us have either the time or the inclination to read all the fine print in an insurance policy and that’s why it’s important to seek expert advice when choosing insurance for your business. There’s no point buying a policy which excludes certain types of work if your business occasionally or regularly undertakes such work. However, without the right advice, you may be unaware that this exclusion is buried away somewhere in the policy. For example, many off the shelf policies exclude work done in the petrochemical, aviation and marine sectors.

In Victoria, registered electrical contractors are required by law to maintain public liability (also known as public and products liability) insurance with a minimum cover of $5m. Such insurance is usually triggered by third party injury and/or property damage occurring during the insurance period.

However, there are many other forms of insurance which electrical and communications contractors must consider. There are the obvious policies covering buildings, tools, vehicles and perhaps contract works.

Some necessary forms of insurance are less obvious. For example, your contracts with your head contractors/clients may impose certain insurance requirements on you. Many head contractors transfer risk to subcontractors by requiring the subcontractor to take out contracts works insurance or require any excess payable under the head contract works policy to be borne by the subcontractor. That excess can be very high. Ensure you carefully review the insurance provisions of any contract and where necessary, request a copy of the head contractor’s works insurance policies. You may need to negotiate with the head contractor to limit any excess payable.

Professional indemnity insurance is another cover which many contractors should consider. In broad terms, this insurance covers third party financial loss triggered by a negligent act, error, or emission on the part of the contractor – in other words, a breach of professional duty by the contractor. As increasing numbers of contractors become responsible for the design of installations and/or the provision of expert advice, more and more of them are finding that they require professional indemnity insurance.

It’s vitally important that you get the right advice, be it from your insurer or your insurance broker, to ensure that you obtain insurance cover that’s appropriate to your needs .NECA has alliances with a number of insurance organisations that can advise and assist members with their insurance needs*. But whatever you do, ensure you seek expert advice.

WFI (formerly Wesfarmers Federation Insurance)

WFI has had an association with NECA Victoria and its members going back decades. WFI Commercial Plan has been designed with business needs in mind. They specialise in providing insurance packages for businesses and households that can be tailored to suit your requirements. Unlike many insurers, at WFI you deal with a person, not just a voice on the other end of the phone.

For more information or an obligation-free quote contact your WFI local area managers on 1300 934 934. Be sure to mention that you are a member of NECA.

InterRISK Australia Pty Ltd - NECAGuard – Professional Indemnity Specialists

NECA Victoria also maintains an alliance with InterRISK.  InterRISK provides NECA Victoria members with exclusive access to the NECAGuard product range, which includes the cost effective Master Professional Indemnity Policy.  This arrangement pools the buying power of members to deliver a comprehensive policy at a very competitive cost.  NECA members can also access a full range of insurance and risk management services.  With strong relationships with insurers both in Australia and overseas, InterRISK is able to deliver tailored insurance solutions for members.  Importantly, InterRISK has offices in Melbourne to ensure the provision of local service is only a phone call away.

For more information or an obligation free quotation on your insurance requirements, NECA members can contact the Team at InterRISK by simply calling 1800 638 554.

Willis Australasia – NECA income protection scheme

This is a joint initiative from NECA and Willis Australasia. It provides excellent coverage for both the self employed and employees for illness and injury. The premiums are very competitive and with Willis’ streamlined administration process and simple forms, you can spend less time completing paperwork and more time running your business.

For more information and an obligation free quote call Greg Tolson at Willis on 03 8681 9938.

Adroit Insurance Group

NECA recently announced the appointment of the Adroit Insurance Group ("Adroit") as an additional provider of Professional Indemnity Insurance.

Adroit have established a Gold, Silver and Bronze program to provide NECA members with a choice of three levels of competitively priced cover for what is clearly a significant and potentially costly risk for members.

This is a comprehensive and affordable liability package specially designed to protect NECA members from a wide range of risks.  One comprehensive, affordable liability package can be structured to include some or all of these covers - Professional Indemnity, Public Liability, Products Liability, Advertising Liability, Professional Services, Directors and Officers Liability, Employment Practices and Statutory Liability.  Call Adroit on 1300 402 756 or visit www.adroitig.com.au 

*NECA Victoria receives commissions from these alliance partners.