HDL Insurance Brokers

Employee Benefits – 4 Topics for Clients to be aware of in Australia

Horsell Duffy Langley — Fri, 06 Sep 2024 02:18:52 +0000

Sep 6, 2024

September 6, 2024

Employee Benefits – 4 Topics for Clients to be aware of in Australia

For more information

1. Superannuation/Pension’s

The compulsory contribution rate by an employer increased from 11% to 11.5% from 1 July
2024.

2. Talent Shortage

Inflation, cost of living, and talent shortages has been a significant driver for wage increases
as companies aim to retain talent and maintain employee satisfaction. Many industries,
especially those with specialised skills like technology, healthcare, and engineering, are facing
talent shortages. To attract and retain skilled workers, employers are offering more
competitive salary packages and additional benefits.

3. Employers leverage Employee Benefits for talent retention

Due to the talent shortage, we are seeing employers reviewing, increasing, or adding Income
Protection to their Employee Benefits package.

Income Protection is tax deductible to the Employer and allows the connection to be
maintained with the employee.

Statutory ‘Sick Leave’ is 8–10 days and after that an employee can use ‘Annual Leave’ or ‘Leave Without Pay’.

4. Psychosocial Hazard Assessment – Safe Work Australia

Following the pandemic, Work, Health and Safety regulations require businesses to manage
risks arising from psychosocial hazard to ensure that the health and safety of its workers (as
far as reasonably practicable).

More information can be provided upon request.

For more information, please contact Allan on 1300 656 622; or

amoore@hdlbrokers.com.au or visit www.hdlbrokers.com.au/employee–benefits

Recent Topics

Employee Benefits – 4 Topics for Clients to be aware of in Australia

Beyond the Workplace: Protecting Your Lifestyle with TPD Insurance

Securing Your Family’s Future: The Importance of Life Insurance for Business Owners

HDL Brokers Expands Its Portfolio to Include Personal Insurance Solutions for Business Executives and Staff

How does rising inflation affect business insurance requirements?

New Commercial Crime cover in Australia

Claim trends drive up PI, public liability premiums

Your guide to insurance for your hospitality business

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact HDL.

HDL news, updates and publications may contain links to non-HDL websites that are created and controlled by other organisations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by HDL, as we have no responsibility for information referenced in material owned and controlled by other parties. HDL strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.

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Beyond the Workplace: Protecting Your Lifestyle with TPD Insurance

Horsell Duffy Langley — Tue, 06 Aug 2024 23:40:01 +0000

Aug 7, 2024

August 7, 2024

Beyond the Workplace: Protecting Your Lifestyle with TPD Insurance

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As a business owner or key executive, your ability to work is one of your most valuable assets. But what happens if an injury or illness prevents you from ever working again? Total Permanent Disability (TPD) Insurance is designed to provide financial protection, ensuring that you and your family can maintain your lifestyle, even when faced with significant health challenges.

Understanding TPD Insurance

TPD Insurance provides a lump sum payment if you become permanently disabled and are unable to work in any capacity for the rest of your life. This Insurance is essential for covering medical expenses, ongoing care costs, debt repayments, and everyday living expenses.

For business owners and key executives, TPD Insurance also helps ensure the continuity of the business by providing the financial resources needed during challenging times.

Why TPD Insurance is Important

Financial Stability: TPD Insurance offers a financial safety net, allowing you to focus on your recovery without worrying about how to cover your expenses. It ensures that you can continue to support your family and maintain your standard of living even when you can’t work.

Business Continuity: For business owners, TPD Insurance can be crucial in keeping the business running smoothly. The lump sum payment can help cover business debts, hire additional staff, or fund operational costs during the transition period.

Debt Repayment: If you have significant personal or business debts, TPD Insurance can help ensure that these are paid off, preventing your family from facing financial hardship.

Case Studies

Ensuring Family Well-being

Mark, a 50-year-old business owner, suffered a severe accident that left him permanently disabled. Fortunately, he had TPD Insurance, which provided a substantial lump sum payment. This payout allowed his family to pay off their mortgage, cover ongoing medical expenses, and ensure their financial stability despite the loss of Mark’s income.

Supporting Business Operations

Lisa, the co-owner of a thriving retail business, was diagnosed with a debilitating illness that prevented her from working. Her TPD Insurance policy provided the necessary funds to hire a manager to oversee daily operations and keep the business running. This support ensured that the business continued to thrive, and Lisa’s family remained financially secure.

Making the Right Choice

When considering TPD Insurance, it’s important to evaluate your personal and business needs. The coverage amount should reflect your financial obligations, including living expenses, debts, and future care costs. Consulting with HDL Life can help you determine the appropriate coverage for your unique situation, ensuring that you and your business are adequately protected.

Conclusion

TPD Insurance is an essential component of a comprehensive financial plan for business owners and key executives. It provides crucial financial support in the face of permanent disability, ensuring that you and your family can maintain your lifestyle and that your business can continue to operate smoothly.
In our next issue, we will explore the role of Income Protection Insurance and how it can help maintain your standard of living during periods of temporary disability or illness. Stay tuned!

For more information on the new Personal Insurance Services, please contact Allan on 1300 656 622 or amoore@hdlbrokers.au or visit hdlbrokers.com.au/employee-benefits

About HDL Employee Benefits t/as HDL Life

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Securing Your Family’s Future: The Importance of Life Insurance for Business Owners

Horsell Duffy Langley — Tue, 16 Jul 2024 06:27:36 +0000

Jul 16, 2024

July 16, 2024

Securing Your Family’s Future: The Importance of Life Insurance for Business Owners

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As a business owner, you likely dedicate countless hours to ensuring the success and growth of your enterprise. However, while focusing on the business, it’s crucial not to overlook the importance of protecting your personal and family’s future. Life insurance is a fundamental tool that can provide financial security and peace of mind, ensuring that your loved ones are taken care of if the unexpected happens.

Understanding Life Insurance

Life insurance is a policy that pays out a sum of money to your nominated beneficiaries upon your death. This payout can help cover various expenses such as mortgage repayments, living costs, educational expenses for children, and any other financial obligations. For business owners, life insurance is particularly important because it can also help protect the business itself by ensuring that debts are covered and that there is financial support for succession planning.

Why Life Insurance is Essential for Business Owners

Financial Security for Your Family: The primary purpose of life insurance is to provide financial support to your family. In the event of your untimely death, the payout from a life insurance policy can help your family maintain their standard of living and cover essential expenses.
Business Continuity: If you have business loans or other financial obligations tied to your personal guarantees, life insurance can ensure that these debts are paid off, preventing your family from bearing the burden. Additionally, it can provide funds for the business to continue operations during a transitional period.
Succession Planning: Life insurance can play a key role in succession planning. If you have business partners, a life insurance policy can provide the necessary funds for a buy-sell agreement, allowing the surviving partners to buy out your share of the business without financial strain.

Case Study 1: Protecting the Family Home

John, a 45-year-old small business owner, has a mortgage and two children in high school. He took out a life insurance policy with a coverage amount sufficient to pay off the mortgage and provide for his children’s education. Unfortunately, John passed away unexpectedly. The life insurance payout allowed his family to stay in their home and ensured that his children could continue their education without financial worries.

Case Study 2: Ensuring Business Continuity

Emily runs a successful marketing agency with two business partners. They have a buy-sell agreement funded by life insurance. When Emily tragically died in a car accident, the life insurance policy provided her partners with the funds needed to buy out her share of the business. This ensured that the business could continue operating smoothly without financial disruption, and Emily’s family received a fair value for her stake in the company.

Case Study 3: Planning for Succession

Consider Sarah, who owns a manufacturing business and is planning for retirement. She wants her daughter to take over the business but recognises the need for a smooth transition. Sarah takes out a life insurance policy naming her daughter as the beneficiary. This policy is part of their succession plan, ensuring that her daughter has the financial resources to manage the business effectively and cover any unforeseen expenses during the transition.

Making the Right Choice

When considering life insurance, it’s important to evaluate your personal and business needs. Factors such as the size of your mortgage, your children’s education costs, and your business obligations should all be considered when determining the amount of coverage required.

Consulting with HDL Insurance Brokers can help you tailor a life insurance policy that aligns with your unique circumstances. Our expertise ensures that you get the right coverage to protect both your family and your business.

Conclusion

Life insurance is not just a safety net; it’s an important component of a comprehensive financial plan for business owners. By securing your family’s future and ensuring the continuity of your business, life insurance provides peace of mind and stability in uncertain times.

In our next issue, we will explore the intricacies of Total Permanent Disability (TPD) Insurance and how it can safeguard your lifestyle in the face of permanent disability. Stay tuned!

For more information on the new personal insurance services, please contact Allan on 1300 656 622 or amoore@hdlbrokers.au or visit www.hdlbrokers.com.au/employee-benefits

About HDL Employee Benefits t/as HDL Life

HDL Brokers have been a trusted provider of insurance services to the Australian market. Committed to excellence, HDL Life delivers bespoke insurance solutions that protect and enhance the lives of its clients.

Contact

Allan Moore
Managing Director
Email: amoore@hdlbrokers.au
Main Line: +61 (02) 1300 656 622
Direct Line: +61 (02) 9579 4081
Mobile: +61 (0) 414 979 758

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HDL Brokers Expands Its Portfolio to Include Personal Insurance Solutions for Business Executives and Staff

Horsell Duffy Langley — Thu, 23 May 2024 04:35:00 +0000

May 23, 2024

May 23, 2024

HDL Brokers Expands Its Portfolio to Include Personal Insurance Solutions for Business Executives and Staff

For more information

Sydney, 15 May 2024 — HDL Brokers, a leader in comprehensive Insurance Solutions, is proud to announce the expansion of its services to include tailored Personal Insurance options specifically designed for Small-Medium Enterprise (SME) business leaders and their teams. Recognising the unique challenges faced by this sector, HDL now offers Life Insurance, Total Permanent Disability (TPD) Insurance, Income Protection, and a suite of Employee Benefits.

“In the fast-paced world of small and medium-sized businesses, the well-being of the individuals who drive business success is paramount,” said Allan Moore, Managing Director at HDL Life. “Our new offerings are designed to provide peace of mind and financial security, ensuring that SME leaders and their staff are protected against personal and professional risks.”

Service Highlights

Life Insurance: Financial security for families in the event of unforeseen circumstances.
Total Permanent Disability (TPD) Insurance: Support for individuals who are unable to work due to permanent disability.
Income Protection: Continuation of income stream during periods of illness or injury, allowing individuals to maintain their standard of living.
Employee Benefits: Attractive packages that help SMEs attract and retain top talent by ensuring their staff’s well-being.

These personalised Insurance Solutions are aimed at addressing the complex needs of high-performing enterprises that prioritise the health and security of their workforce.

Starting 22 May HDL Employee Benefits t/as HDL Life will roll out a series of fortnightly newsletters, each highlighting a different aspect of these vital coverages. The series will equip business owners and their employees with the knowledge to understand and leverage their new Personal Insurance Protections effectively.

“We are excited to offer these new services and look forward to supporting our clients in safeguarding their most valuable asset — their people,” added Gavan Duffy – Group Managing Director HDL Insurance Brokers Pty Ltd.

About HDL Employee Benefits t/as HDL Life

HDL Brokers have been a trusted provider of Insurance Services to the Australian market. Committed to excellence, HDL Life delivers bespoke Insurance Solutions that protect and enhance the lives of its clients. For more information on the new personal insurance services, please contact Allan on 1300 656 622 or amoore@HDLBrokers.com.au or visit www.HDLBrokers.com.au/employee-benefits

Download a PDF of this media release

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How does rising inflation affect business insurance requirements?

Horsell Duffy Langley — Tue, 20 Jun 2023 02:09:41 +0000

Jun 20, 2023

June 20, 2023

How does rising inflation affect business insurance requirements?

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The rising inflation we’re experiencing now is affecting insurance in a number of ways.

Materials commonly used to replace damaged properties, such as building items and even labour, are in short supply, driving up replacement costs.

Gavan Duffy, Managing Director HDL Insurance Brokers, says in these times, it’s important for businesses to make sure the sum insured for their assets reflects their current replacement value so that if their property is damaged, the settlement may cover the costs.

“If the sum insured is not accurate, this may impact the settlement they receive if they have to make a claim,” Duffy says.

Insuring for the true replacement cost is crucial

Duffy says there are several factors to consider.

“The first thing is that in business insurance there is generally a co-insurance clause that states you have to insure for the replacement cost of the building as at the time you take out the policy,” he says.

“That’s relevant in the current inflationary environment because, unfortunately, the cost of materials and building costs have increased significantly.”

It’s extremely important that the sum insured reflects the true replacement cost at the time the policy is taken out, regardless of what the owner believes it to be, Duffy says.

“If the business doesn’t insure for full replacement cost, in the event of a claim, the insurer can reduce the amount of the payout even if there is not a total loss” he says.

The way in which this works is complex and depends on the wording of the particular policy.

However, the following is an example from a wording which is widely used in the market.

Sum Insured on the building: $1,000,000.
Actual cost of replacement of the building: $2,000,000.
Cost of repairs: $200,000.
Amount payable under the policy = ($2,000,000 x 80%) = $1,600,000.
$1,000,000/$1,600,000 = 62.5%.
$200,000 x 62.5% = $125,000
Amount payable = $125,000.

However, Duffy says: “If the building burns down, the insurer only has to pay you the sum insured. If the insured amount is $1 million and it’s going to cost $2 million to replace, you’re $1 million out of pocket.

Yearly review of sum insured recommended

Underinsurance can be a serious problem in Australia, especially when people don’t regularly review the sum insured.

“Businesses should aim to review the value of their assets at least once a year,” Duffy says.

“Maybe at the moment, because the increases are so significant, it should be twice a year, but at least once. And every time a business renews the policy, they should be working out the replacement cost of the asset.”

“If your property or asset has an unusual feature, it’s best to use either a quantity surveyor or a valuer to get a more accurate calculation,” Duffy says. “This should be done at every renewal, particularly in the current environment of rising inflation.”

Calculations should factor in a time lag

Another point small businesses should consider is that if their building or another asset is damaged or destroyed, it may take a while to replace, as some materials are not currently accessible.

“Jobs that previously took six months can now take 12 months because the materials aren’t available,” Duffy says.

“Also, if a significant amount of work is required, it will probably take a while to get council approval. In the time required to get either approval or for the materials to be sourced, costs could have risen again. All this needs to go in the mix when working out how much cover you require.

“This is why having a conversation with your broker is so important.”

More information

Contact HDL for further information.

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New Commercial Crime cover in Australia

Horsell Duffy Langley — Sun, 21 May 2023 03:17:20 +0000

May 21, 2023

May 21, 2023

New Commercial Crime cover in Australia

For more information

Liberty’s Commercial Crime cover is designed to protect companies from financial loss due to theft or fraud by employees or third parties.

Social engineering fraud and the ability to impersonate someone digitally to steal money is a daily occurrence in Australia and it’s an issue impacting many companies. Liberty’s Commercial Crime insurance is a broad cover that can protect companies from this kind of loss.

Liberty is one of Australia’s largest Director & Officers (D&O) Liability insurers. Protecting 2000 boards today. Commercial Crime cover is often purchased alongside D&O. This new cover enables Liberty’s clients to take advantage of this.

Standard inclusions of the policy offer protection for:

Internal fraud including employee fidelity that provides broad cover for direct loss from fraudulent, dishonest, malicious, or criminal acts committed by an employee or direct loss sustained by a client from fraudulent, dishonest, malicious, or fraudulent acts committed by a company’s employee
Forgery or alteration cover for loss due to forged or altered instruments being drawn by, or drawn upon, the company
Direct loss inside and outside the premises from theft, disappearance or destruction of money or securities, and loss of other property due to robbery
Social Engineering Fraud, Computer Fraud, Funds Transfer Fraud, Money Orders & Counterfeit Paper Currency
Claims and legal expenses that occur to establish the loss
Interest receivable or payable
Public relations expenses

Liberty provides a complete set of customised financial lines products – Professional Indemnity, Directors & Officers Liability, Employment Practices Liability, Statutory Liability, Cyber and Crime.

For further information Contact HDL.

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Claim trends drive up PI, public liability premiums

Horsell Duffy Langley — Sat, 20 May 2023 01:46:56 +0000

May 20, 2023

May 20, 2023

Claim trends drive up PI, public liability premiums

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Professional indemnity (PI) and public and products liability premiums have increased sharply since 2015 as claims trends deteriorated, according to an annual Australian Prudential and Regulation Authority (APRA) report.

The APRA National Claims and Policies Database says PI gross written premiums (GWP) grew by 75%, made up of a 27% increase in average premiums and a 38% increase in risk counts.

Overall PI premium volumes grew modestly over the 2009-2016 period at an average increase of 3.2% per annum and then escalated from 2017-2020 at an average increase of 12% – rising from about $900 million to $1.4 billion.

APRA says PI affordability improved during the 2009-2015 period as premiums fell by an average 3.4% from $2900 to $2350.

“This indicates that the affordability of professional indemnity insurance was improving over this period,” APRA says.

But the trend reversed by 2021 as average premiums were higher at $3000, representing a 27% increase or an average 4% annual increase from 2015 to 2021.

APRA says by industry the insurance sector – particularly insurance brokers – and financial planners as well as building surveyors saw “significant” PI rises.

“For insurance, insurance brokers and insurance agents have driven the large increase in average premiums,” APRA says, referring to the 2015-2021 period.

Total finalised PI claims cost stepped up by around 35% from an average of $310 million per annum over 2009 to 2013 to an average of $420 million a year over 2014 to 2021.

APRA says the step-up in cost in 2014 was mainly driven by a 60% increase in large claim costs, the result of an increase in the volume of large claims.

For public and products liability, overall GWP grew by 53% since 2015, made up of a 40% increase in average premiums and a 9% rise in risk counts.

Total premium volumes grew slowly from 2009 to 2016 at an average increase of 1.5% per annum and then escalated from 2017 to 2020 at an average increase of 11%, increasing from $1.9 billion to $2.9 billion.

“This escalation appears to be in response to increases in claims costs,” APRA says.

Public and products liability finalised claims costs stepped up by 30% from an average of $720 million a year from 2009 to 2013 to an average of $940 million from 2014 to 2021.

The step up in cost in 2014 was mainly driven by a 50% increase in large claim costs. APRA says a large public liability claim is one that is above $500,000.

The database was created in January 2005 and in this latest update the regulator collected data up to December 31 2021 to explore trends in the affordability of these insurance products and discuss the key drivers of these trends.

Click here for more from the database.

Contact HDL for further information.

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Your guide to insurance for your hospitality business

Horsell Duffy Langley — Wed, 10 May 2023 01:10:20 +0000

May 10, 2023

May 10, 2023

Your guide to insurance for your hospitality business

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Australia is home to more than 30,000 restaurants, 28,000 cafes and coffee shops and 9000 pubs, bars and nightclubs.

If yours is one of them, you’re likely to already be familiar with some of the challenges that are part and parcel of running a hospitality business. It also pays to be prepared if you plan to open your own establishment.

There’s a lot that can go wrong, and without the right insurance cover in place, it’s easy to end up out of pocket or, in a worst-case scenario, out of business.

These are some of the most common exposures hospitality business owners need to protect themselves against.

Public Liability

If someone slips on your dining room floor, contracts food poisoning after eating in your establishment, or suffers any other form of injury while on your premises, they may decide to seek compensation.

Public liability insurance can help cover the cost of personal injury and property damage claims made by individuals other than your employees. The nature of your business will determine the level of cover you’re likely to need.

“The risk of fights, for example, is much higher when you’re running a club versus a café or restaurant because people aren’t necessarily going to be drinking as much alcohol in the latter,” HDL Managing Director Gavan Duffy explains.

Property and Machinery

If your business does any form of cooking, the risk of a kitchen fire can be present. Property insurance can help you to repair the damage should a blaze break out, while machinery insurance can be used to replace any equipment that’s damaged or destroyed.

Sometimes the rectification process can be a protracted one if equipment or parts aren’t readily available or need to be imported from overseas.

“Some special orders can take up to six months,” Duffy says.

Business interruption

That’s when business interruption insurance can come into play. Designed to help your business keep running after a catastrophic event, it can help to cover ongoing costs while you recover and rebuild.

“If you’re unable to cook or offer your full menu, for example, your takings may be significantly reduced,” Duffy explains. “Business interruption insurance can help tide you over until you’re ‘cooking with gas’ again.”

Workplace Injuries

Hospitality environments can be fast-paced and hazardous, which means the risk of workers injuring themselves on the job – think burns, cuts and slips and trips – is high. That’s why it pays to implement stringent workplace health and safety procedures and to ensure all employees are adequately trained.

They can be entitled to seek compensation for any physical or mental injuries incurred in the course of their employment, so having appropriate workers’ compensation cover can help you meet the cost, should that occur.

Theft and burglary

Unfortunately, break-ins can be a common occurrence for businesses across all sectors, including hospitality. Theft and burglary insurance can cover loss or damage to your stock and contents resulting from forced entry.

Cover to keep your hospitality business humming

f you haven’t reviewed your business insurance for a while, now is a great time to do so. To discuss all of your hospitality cover needs, Contact HDL for further information.

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7 trends in global insurance programs

Horsell Duffy Langley — Mon, 01 May 2023 03:57:47 +0000

May 1, 2023

May 1, 2023

7 trends in global insurance programs

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In today’s fast changing world, companies face risks that span borders and regulatory regimes, which is resulting in growing interest in multinational insurance programs, a fully end-to-end customised service for the cross-border exposures of organisations, including risk transfer and captive services.

What are some of the current and future trends in this space?

1. Cross-border exposures have never been more volatile for multinationals. Expect the unexpected.

The volatile socio-political environment has dramatically impacted the risk landscape, presenting risk managers with the challenge of how best to protect their companies in the face of conflict, political unrest, economic risk, supply chain disruption, increasing cyber threats and climate change. Most experts predict that businesses will continue to experience significant disruption around the world for some time yet. Scenario planning is vital in order to plan for the growing number of crises, as is ensuring holistic insurance cover is in place.

2. A Complex regulatory environment, broadening client footprints and improving technology mean the global insurance program market is poised for sustained growth.

The multinational insurance program market is set to grow in 2023 aligned with the general growth rate of multinational enterprise which is estimated to be beyond 60% globally since 2010. Anticipated drivers of future growth include our ever more interconnected world, a broadening customer footprint as international companies expand, the increasingly complex regulatory, tax and reporting environment around the world, and lower barriers of entry as digital tools and portals help facilitate service improvements. Global insurance programs ensure full insurance coverage and can help prevent any regulatory violations. At the same time, global risk consulting and claims services are becoming increasingly important, given this current environment.

3. Digitalisation is unlocking real-time data and enabling greater collaboration.

Companies have woken up to the power of data in their businesses, and increasingly want to conduct business digitally. When it comes to global insurance programs, firms now expect much faster turnaround times than in the past.

In response, the world’s leading insurers, including Allianz through our digital portal, are turning to digitalization to improve how they operate global insurance programs, speeding up systems and improving data collection and analytics, including 24/7 accessibility and real-time updates. API (application programming interface) technology is enabling a more streamlined, real-time exchange of data between stakeholders. Such improvements are enabling greater transparency over what is covered under a local policy and what is covered under a master. Any potential gaps can then be easily identified and addressed, making things easier for clients, brokers and insurers alike.

Ultimately, digitalisation is helping to deliver a better and deeper understanding of risk. It is making it easier for risk managers to take an active role in risk management, offering increased access to data and greater levels of collaboration with insurers and brokers, both of whom, in turn, can then spend more time on client-focused activities.

4. Growing use of captives alongside global insurance programs.

Many multinationals are increasingly using their captives alongside their global insurance programs, either with or without risk transfer or as a full-service captive. Captives are growing in popularity, particularly if there is a lack of capacity in certain areas or effective rate increases on certain lines of business means that for companies either increasing utilization of the captive they have or forming a new captive or cell captive is an attractive option. Financial lines, errors and omissions, D&O and cyber have been among the most popular lines of business for multinational captives.

A captive is an invaluable tool when it comes to coordinating the different covers of various subsidiaries around the world and collating risk information on exposures and losses.

5. Post Covid-19, the awareness of the need for greater contract certainty is growing.

The pandemic brought some challenges that tested the relationships between risk managers and insurers, particularly around which risks were covered, and which were not. This has led to a greater focus on contract certainty and data analytics, as well as increasing interest in global insurance programs, which can be an important tool for helping multinational companies tackle the ever-evolving risk landscape.

Contract certainty is one of the big insurance lessons learned from the Covid-19 pandemic. It is clear that there needs to be better greater clarity around what policy wordings actually mean in order to have a better understanding of what is and what isn’t covered.

Global insurance programs deliver full transparency over what is covered under a local policy and what is covered under a master. Any potential gaps can therefore be easily identified and addressed as needed, making things easier for all parties.

6. Global insurance programs can help organizations with ESG and emerging risks.

Environmental, social, and governance (ESG) issues are increasingly landing on the desks of risk managers. Multinationals face growing interest and increasing scrutiny from regulators, investors, customers, and employees about their ESG footprint.

In global insurance programs, ESG is integrated into underwriting via industry leading rules and tools, while technology and data analytics is increasingly delivering better insights into big, emerging risks such as climate change, cyber and global supply chain issues.

7. Don’t forget the growing influence of AI and virtual economies.

Artificial intelligence (AI) applications bring benefits such as increased efficiencies, new products and fewer repetitive tasks, while the metaverse – the space where interconnected physical and virtual realities converge – has the potential to provide experiences not available in the real world, giving rise to a booming virtual economy.

Insights gained from AI-powered analytics and data could expand the boundaries of insurability, extending existing products, as well as giving rise to new risk transfer solutions.

However, as with any disruptive technology, increasing usage of AI and engagement with the metaverse will also introduce new risks and potential liability scenarios to society. To ensure their safe and secure use, both will need rules among users and platform providers and appropriate measures for enforcing them.insuran

More information

Discover more about international insurance programs.

Contact HDL for further information.

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What the new director ID rules mean for you and your business

Horsell Duffy Langley — Wed, 22 Feb 2023 07:54:00 +0000

Feb 22, 2023

February 22, 2023

What the new director ID rules mean for you and your business

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If you’re the director of a company and you have not registered for a director ID, you could risk a penalty of up to $1.1 million.

So, if you’re among the many directors who have not yet registered for their ID, now’s the time.

The Australian Taxation Office has said penalties won’t affect anyone who applied for their director ID before 14 December 2022.

Now every director is required to apply for a director ID under the Corporations Act 2001 (Cth).

You will need to have a myGovID to apply for the director ID, so if you don’t have a myGovID it’s time to get one now.

A director ID is perennial, even if the person:

Changes companies.
Stops being a director.
Changes their name.
Moves interstate or overseas.

The director ID will help prevent the use of false or fraudulent director identities and helps the government to take action against illegal activity.

It’s also important so that shareholders, employees, creditors, consumers and know who are the directors of a company.

The 15-digit ID will make it easier for administrators of failed companies to track directors between companies.

It’s also going to help stop ‘phoenixing’. This is when the directors of a failed company start a new company, a phoenix company, to carry on the activities of the previous company, just without the debt of the previous company.

As a company director, you must apply for your director ID yourself, your tax or BAS agent can’t apply for you.

The easiest way to apply for a director ID is through www.abrs.gov.au. The ABRS is a new service the federal government has launched for managing business information. You can also apply for a director ID by filling in paper forms.

Fines Apply

The maximum criminal penalty for not having a director ID when required, or failure to apply for one when directed by the Registrar, is $13,200, with civil penalties extending up to $1.1 million.

Gavan Duffy, Managing Director HDL Insurance Brokers, says in the event a director receives a civil penalty, liability insurance may cover its cost.

“But insurance won’t cover criminal penalties.”

More information

It’s important to ensure you have the right insurance in place if you are a director of a business.

Contact HDL for further information.

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