Yes, when referring to 'storm' and 'fire' damage to a solar panel system because the risk of electrocution is dramatically increased.
Even on the stormiest of days, rooftop solar photovoltaic (PV) systems stay energised, putting you and emergency workers at high risk of electrocution after a storm, flood or fire – and even after the mains power has been switched off.
Fire and Rescue NSW says if a damaged solar panel comes into contact with a conductive surface, the electrical charge can travel up to eight metres from the point of contact!
A fire fighter hose stream attempting to extinguish energised solar PV system panels, can electrify the stream of water*
If your home or business is flooded be sure to contact an electrician to power down the system, and after a severe storm, get an accredited installer to assess the system’s condition, because if it’s damaged it remains an electrical or fire hazard.
There is good news!
Placing standards-compliant warning labels or stickers on the panels, at the meter, fuse box, inverter and all points of entry can alert emergency workers to the type of system on your premises and all the locations of secondary power supplies associated with it, which will influence how they manage an emergency depending on what you’ve got.
Be proactive in helping emergency workers locate and isolate secondary power supplies quickly during an emergency by ensuring those labels can be clearly seen. Check these annually to ensure they are not faded, hidden or have been removed. During installation of your system, ensure the dual power supply and PV isolation points are clearly identified too.
Almost 300,000 rooftop solar systems were installed in Australia in 2019 so its very important to minimise the risks to you and emergency workers in the face of extreme weather events.
Solar panels are covered by business and home and contents insurance against weather events, however, you should review your building sum insured to ensure it remains adequate. If you’re unsure if have the right coverage to include your solar system, please give me a call.
* Alternative Technology Association (ATA report, 2016), now trading as Renew https://renew.org.au/wp-content/uploads/2018/08/FireRisksOfSolarPV_ATA_D16_Final.pdf
Further Reading
Clean Energy Council - www.cleanenergycouncil.org
Fair Trading - https://bit.ly/3oypbZK
Renew - https://renew.org.au
Extreme storms, cyclones and floods are predicted to be commonplace over the 20/21 summer season.
The cause is a well-documented weather pattern known as “La Niña”.
Between January and March 2021, normal La Niña wet weather events are predicted to be 70% more severe1, thanks to the turbo boost of climate change2.
Given the forecast, we can assume we’re not looking at just one major event either.
These facts are significant for your business because it means the time is now to prepare for an increased risk of flooding and storm damage by reviewing your risk management strategy.
Physical asset loss, financial loss and the emotional toll of losing your capacity to trade, support staff and yourself during times of closure, are just some of the knock on effects which need to be considered and minimised as best as possible.
There’s a reasonable chance your suppliers will be affected too.
Check now - and KPI Broking can help - if your insurance policies are up-to-date and you understand exactly what you’re covered for.
I recommend you proactively do your research, speak with council about the level of risk in your area, check your property’s preparedness and research potential re-build costs.
For a comprehensive history of the types of flooding which occur in the Coffs Harbour area, visit the Coffs Harbour City Council website3.
After a shocker of a year, this kind of warning is the cherry on top, but it’s a heads up which improves your chances of coming out the other side in good condition.
KPI Broking can steer you in the right direction and help you understand what’s right about your policy in the face of the season, and what needs fixing now.
On that happy note, it is a really good time to remember we have much to be grateful for. Australia has been altered by the COVID pandemic and there’s been, and still is, great suffering. Compared to other nations though, we can be thankful Christmas is open for business, we can hug our family members and mostly be together again, remembering there’s still thousands of Aussies waiting to come home.
If the past 12 months has taught me anything, it’s what really matters. Family, friends, being aware of other people’s problems and not just my own.
A lot of people will be doing it tough this Christmas. I may not be able to help them directly but a smile and kind gesture can make a difference.
So, while giving gum boots as Christmas presents are probably a good idea this year, stock up on compassion.
Do stay safe over the holiday period, and feel free to pick up the phone and have a chat about your policy and let’s work together to get a head start on next year’s little surprises.
All the best,
Ken Phillips
FURTHER INFORMATION
From the team at KPI Broking, we’d like to say thank you for supporting us over the past five years. We look forward to serving you and your business well into the future.
KPI BROKING IS 5!
It’s been a milestone year for most people in business, many for the wrong reasons thanks to COVID, but it's important we still pause for the things worth celebrating and our 5th year in business is one of them.
It's hard to believe we first opened the doors five years ago on July 1, 2015, with 71 clients, 300 policies and one employee: me, Ken Philips.
Now, we can look back on a lot of hard work done to achieve steady growth and we’re proud to say, we have serviced 305 clients in the Coffs Harbour area - and beyond - with 716 policies.
I can also say ‘we’ because our team has grown to three, and now includes the very capable Debbie Winter and my son, and broker-in-training, Will Phillips.
Since 2015, Coffs Harbour has seen its fair share of weather events, so fires, floods, water damage and hail have all featured among the 330 claims we’ve settled for clients, valued at $2,627,444.
There are plenty of other reasons clients have approached us for assistance to claim settlements and these include, liability, cyber, breach of professional duty, employee theft/embezzlement, harassment in the workplace, director and officers, theft, house and contents, motor vehicle and travel.
Plus, we’ve managed 331 endorsements and about a 'gazillion' requests for certificates of currency!
Five years is a significant milestone for any business and we’d like to thank our clients for supporting us with your insurance business and being part of our story so far. We hope to continue giving you peace of mind with protection for your homes, businesses and vehicles.
Thank you too to supporters and family who helped us stay the course with your encouragement.
KPI Broking would not be here today if it wasn’t for you, our clients, my dedicated staff and new and returning clients who value our unique service and genuine desire to achieve the best outcomes for all.
In celebration,
Ken Phillips
Insurance industry statistics show 38 percent of small businesses shut down when faced with a business disruption in a busy period like Christmas.
Sudden causes might be flooding or hail from a storm, burst mains, fire, accidental or malicious damage.
It doesn’t even have to happen directly to you. An interruption can impact your major supplier, a neighbouring business or your street, but have the same devastating effect.
One in four businesses don’t survive if the interruption goes on for three months.
So, what could possibly take three months to rectify?
Drafting plans, council permits for a rebuild, ordering a refit or finding, ordering and fitting a new premises or the availability of tradespeople – especially if the event is weather related and multiple businesses in your area are in need of repairs simultaneously.
This can also lead to delays in emergency services and insurance assessments.
Regardless of how long an interruption lasts, the pause button unfortunately does not get pressed on operation costs too.
Mortgage repayments, rent, vehicle leases, electricity, water, phone, gas and internet bills, staff salaries; all these keep coming in alongside the added costs of repair and losses.
Assessing your business’s ability to survive and ensure the right protections are in place according to your industry, location and supply chain, is know-how you can expect from KPI Broking.
We can explain Business Interruption insurance and the safety net it provides to cover, for example, shortfalls in your gross profit or retaining key staff until that happy day you can display the ‘We’re Open’ sign again.
While a large percentage of SMEs fold in the first three months of a major business interruption, 50 percent won’t see out the three years because of it.
Just like you, KPI Broking would rather that didn’t happen.
Do give us a call on 6658 9454 or email your query to debbie.winter@kpibroking.com.au to find out more about Business Interruption Insurance.
Call Ken Phillips at KPI Broking on (02) 6658 9454, for a review of your insurance needs.
",,KPI Broking,21.10.2019,,Read More,Same Window, 5,When risk is deemed too risky,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/risk.png,,HTML,"Sudden causes might be flooding or hail from a storm, burst mains, fire, accidental or malicious damage.
",,KPI Broking,24.07.2019,,Read More,Same Window, 6,Cushion yourself against the rate rise,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/cushion.jpg,,HTML,"It doesn’t even have to happen directly to you. An interruption can impact your major supplier, a neighbouring business or your street, but have the same devastating effect.
",,KPI Broking,26.02.2019,,Read More,Same Window, 7,Start saving on your insurance: Apply for your Stamp Duty exemption,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/saving-insurance.jpg,,HTML,One in four businesses don’t survive if the interruption goes on for three months.
,,KPI Broking,26.02.2019,,Read More,Same Window, 8,Do you qualify for NSW Stamp Duty Exemption?,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/stamp-duty.jpg,,HTML,"So, what could possibly take three months to rectify?
",,KPI Broking,19.12.2018,,Read More,Same Window, 9,The year Santa didnt come,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/santa.jpg,,HTML,"Drafting plans, council permits for a rebuild, ordering a refit or finding, ordering and fitting a new premises or the availability of tradespeople – especially if the event is weather related and multiple businesses in your area are in need of repairs simultaneously.
",,KPI Broking,29.12.2018,,Read More,Same Window, 10,Dont get burnt this summer,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/summer.jpg,,HTML,This can also lead to delays in emergency services and insurance assessments.
,,KPI Broking,14.11.2018,,Read More,Same Window, 11,State of emergency,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/state-of-emergency.jpg,,HTML,"Regardless of how long an interruption lasts, the pause button unfortunately does not get pressed on operation costs too.
",,KPI Broking,14.06.2018,,Read More,Same Window, 12,"Scam in a can, part 2",,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/scam-alert.jpg,,HTML,"Mortgage repayments, rent, vehicle leases, electricity,
",,KPI Broking,15.05.2018,,Read More,Same Window, 13,"Scam in a can, part one",,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/scam-alert.jpg,,HTML,"water, phone, gas and internet bills, staff salaries;
",,KPI Broking,15.04.2018,,Read More,Same Window, 14,Get ready for data breach mandatory reporting,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/data-breach.png,,HTML,all these keep coming in alongside
,,KPI Broking,15.03.2018,,Read More,Same Window, 15,"Agribusiness Cover, the pros and cons",,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/agribusiness.jpg,,HTML,the added costs of repair and losses.
,,KPI Broking,15.02.2018,,Read More,Same Window, 16,The Shock of solar,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/shock-solar.png,,HTML,"Assessing your business’s ability to survive and ensure the right protections are in place according to your industry, location and supply chain, is know-how you can expect from KPI Broking.
",,KPI Broking,15.01.2018,,Read More,Same Window, 17,Have you done your bushfire risk assessment?,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/bushfire-risk.png,,HTML,"We can explain Business Interruption insurance and the safety net it provides to cover, for example, shortfalls in your gross profit or retaining key staff until that happy day you can display the ‘We’re Open’ sign again.
",,KPI Broking,09.12.2017,,Read More,Same Window, 18,The risks of driver fatigue,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/driver-fatigue.jpg,,HTML,"While a large percentage of SMEs fold in the first three months of a major business interruption, 50 percent won’t see out the three years because of it.
",,KPI Broking,08.09.2017,,Read More,Same Window, 19,The boom and bust cycle,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/boom-bust.jpg,,HTML,"Just like you, KPI Broking would rather that didn’t happen.
",,KPI Broking,07.09.2017,,Read More,Same Window, 20,When your building bites back,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/building-bites-back.png,,HTML,Do give us a call on 6658 9454 or email your query to debbie.winter@kpibroking.com.au to find out more about Business Interruption Insurance.
,,KPI Broking,08.08.2017,,Read More,Same Window, 21,Business ethics and profitability,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/business-ethics.png,,HTML,Check our website for more information
,,KPI Broking,08.07.2017,,Read More,Same Window, 22,Terrorism Insurance Levy,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/terrorism-insurance.jpg,,HTML,Call Ken Phillips at KPI Broking
,,KPI Broking,27.04.2017,,Read More,Same Window, 23,"Coinsurance can be the Santa ""Clause""",,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/coinsurance.jpg,,HTML,"on (02) 6658 9454, for a review of
",,KPI Broking,02.03.2017,,Read More,Same Window, 24,How long is a bi-indemnity period?,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/bi-indemnity-insurance.jpg,,HTML,your insurance needs.
,,KPI Broking,11.02.2017,,Read More,Same Window, 25,How do you calculate business interruption (BI) insurance?,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/calculate-business-interruption.jpg,,HTML,"… WITH THE HELP OF A BROKER and your documentation in order to support your claim – to the letter (or dollar, as the case actually is).
The calculation begins by establishing your turnover and stock on hand for the last financial year. Deducted from this amount will be stock on hand at the beginning of the last financial year and specified working expenses.
Specified working expenses are costs you might expect to stop altogether or reduce proportionately to a reduction in turnover, such as window cleaning services or electricity bills for a premises, which has been destroyed.
There will also be costs, however, which don’t change such as a baker who contracts with a local flour mill to take regular supplies at a fixed price over a period of time to eliminate the risk of variable market prices (if only we could buy our petrol that way!).
If a 100 per cent loss occurs and the baker’s turnover is reduced 100 per cent, likewise the costs are not reduced as they are fixed under contract.
The fixed prices for materials are best not deducted from the gross profit sum insured under Business Interruption Insurance.
Once your annual gross profit is calculated, adjustments are made for the trend of your business during the last accounting period to the start of the policy period, during the policy period and the indemnity period. This will arrive at the annual insurable gross profit.
Next week, I’ll look closely at the indemnity period of Business Interruption insurance.
There are plenty of scenarios to interrupt the normal flow of your day-to-day business operation, which are not covered by Business Interruption insurance.
Suppose your council is completing road works on your street, which changes traffic conditions, closes parking spaces or limits footpath access to your premises.
There’ll inevitably be an interruption to your bottom-line as some customers may not bother with navigating closed roads or the inconvenience of parking further away than usual. You will face a quiet time, but you can still trade.
For Business Interruption insurance to really kick in, there unfortunately does need to be a genuine catastrophe, which prevents you from trading or using your business premises at all.
When you face a total loss, BI is that “nest egg” you’ve wisely been ‘saving for a rainy day’ and you’ll be grateful for it, for the many reasons discussed in previous articles.
You’ll know it’s time to call in the BI big guns because your business world will have surpassed DEFCON 5 and appear to be about to end.
You could say Business Interruption insurance is the Bruce Willis you need when total loss without it, is imminent.
When there’s no physical way you can continue to trade and you’re at that junction of choosing whether to walk away or rebuild, Business Interruption insurance is the solution, which at least keeps you liquid (conditions apply) until you’re on your feet again.
",,KPI Broking,03.11.2016,,Read More,Same Window, 28,Why insure for business interruption (BI)?,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/insure-business-interruption.jpg,,HTML,"Asking the question why insure for Business Interruption is to ask why protect anything we value against unknown circumstances.
When we walk across a street we protect our life by looking both ways. It’s a tried and true measure to avoid the worst.
It doesn’t, however, protect us from events beyond our control, like a speeding car that runs a red, a distracted driver on their phone or even our own misjudgment of a gutter that puts us on our knees.
How many businesses were prepared for interruption to their daily trading, caused by the 1989 earthquake in Newcastle?
According to a report held in the Newcastle Cultural Collection’s earthquake database 6,000 commercial claims were lodged for suspected earthquake damage.
“For about a year after the earthquake new claims kept coming in, at a rate of between 300 and 400 each week,” the report says.
So while it’s common sense to look both ways, predicting the unpredictable requires a third eye and that’s where Business Interruption Insurance comes into play.
Business Interruption is a safety net to help you quickly get back on your feet by covering lease payments, hire purchase, mortgage repayments, payroll costs including on costs such as WorkCover, PAYE, payroll tax and superannuation, rent and outgoings, insurance such as key man, income protection, life insurance and all types of general insurance the business has, utilities such as gas, electricity, communications and water charges plus more.
If you expect the unexpected your business will be ready for just about anything.
",,KPI Broking,01.10.2016,,Read More,Same Window, 29,What is business interruption?,,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/business-interruption-what-is.jpg,,HTML,"We all set out to achieve a seamless degree of flow in our business systems, which allow for predicting the future and naturally, we hope, foretell its growth.
When those systems are damaged or destroyed everything else down the line is affected.
A business interrupted is a business stalled and in a worst-case scenario that could mean the business fails.
Catastrophes like a premises flooding or catching fire is where Business Interruption (BI) or Interruption Insurance, as it can also be known in the trade, protects not just an employer and his or her premises, but the wellbeing of staff and their families who depend on the business’s longevity.
While you’re closed for business, customers are also likely to post their loyalty stakes elsewhere and your income with it, but expenses such as car payments and debt will continue to find you.
Business Interruption Insurance can remove the financial risk and associated stress from you, your business and anyone else impacted by its closure.
If you stop for a moment and consider just how much you have invested into your business’s creation, from the moment you conceived the idea, to this day and beyond; not just in dollar terms, but family sacrifices, lost sleep and it’s impact on your health, the additional worry or fear of failure. What is it that you stand to lose, or could protect, with Business Interruption Insurance?
In coming weeks I’ll be exploring the benefits of this insurance model and the difference it makes.
",,KPI Broking,01.09.2016,,Read More,Same Window, 30,"As cybercrime trends change, insurance is more vital than ever",,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/cybertrends.jpg,,HTML,"Cybercrime is not something to ignored. Statistics show that the cyber security threat to Australian businesses is increasing, with 11,073 separate incidents relating to cyber security reported by Australian business owners in 2014 alone.
This is no time for complacency, but it is also no time for blind panic either.
Instead, business in Australia needs to adopt a rational approach to tackle this sort of criminal assault on profits and property. Australian businesses simply need to ensure that they are adequately prepared.
One of the main dangers of cybercrime is in its fluidity. As technological development continues to gallop forwards at a frightening pace, the methods and means of cybercriminals follow suit, often threatening to outpace the efforts of those attempting to combat them.
Michael McKinnon is a security advisor for anti-virus software developers and IT security firm AVG, he explained how complacency is the biggest danger to small and medium sized companies in Australia, but that by fostering a more effective risk management culture, this could be overcome.
“Businesses don’t choose to be targets, they’re all targets,” he said.
“I know lots of SMEs don’t believe they would ever be a target, but it’s important to understand what a cyber-adversary is.”
But it’s not just Australian firms operating domestically that can be targeted by cybercriminals; the cyber threat could be about to become even higher for Australian businesses operating in emerging markets, Asian markets in particular.
While the Privacy Act that came into force in Australia back in 1988 provides some legal protection for sensitive data stored by companies within the country, recent cybercrime developments within emerging Asian markets have cast doubt on the security of such data.
One such operation – dubbed “Tropic Trooper” – saw cyberattackers besieging the systems operated by the Taiwanese government as well as heavy industries within the island nation. Systems operated by the Philippine military also came under attack. While this attack was not directed at Australian firms operating in South Asia, it did highlight the opening of a new battleground in the war on cybercrime.
The attacks in Taiwan and the Philippines also highlighted the need for consistently developing efforts in combating cybercrime, and the heightened need for insurance policies that offer an extra-level of protection against cyber attacks and threats.
While the provisions of an insurance policy may not be able to prevent the damage inflicted by such an attack, they could prove to be the difference between a firm weathering the storm and going under entirely.
It is not only the first party losses of the business in question that need to be covered, but also the potential losses sustained by their customers. In order to maintain a high level of consumer trust when operating in both domestic and international markets, businesses must ensure that their cybercrime insurance policies cover third party losses also, and that this fact is advertised to prospective partners and clients.
By implementing this level of care, preparation and insurance cover, we can react positively, effectively and, above all, rationally to the cyber threat. As the threat of cybercrime grows, so must our abilities to understand and combat it.
Ken Phillips – Commercial Insurance Specialist
For more information:
http://www.smartcompany.com.au/technology/information-technology/47826-cyber-criminals-targetin g-unwary-businesses-report.html#
http://www.oaic.gov.au/privacy/privacy-act/the-pri…
http://enterpriseinnovation.net/article/are-asian-governments-next-major-cybercrime-targets-1997743 397
Image source: by Intel Free Press, via Flickr
",,KPI Broking,19.08.2016,,Read More,Same Window, 31,"Premium cycle, what's the market doing?",,insurance,insurance,,Regular Image,Both,Enable,https://kpibroking.com.au/blogimages/premium-cycle.jpg,,HTML,"Insurance premiums go up and down like any other market. We refer to the market in terms of Soft (cheap) or Hard (expensive) and just like our eggs we like it soft! I’m sure you’ll agree!
Catastrophic claims, claims trends and interest rates have a large bearing on the profitability of the reinsurers and insurance companies and this determines pricing.
What does the future look like for the commercial lines market? Well, the last 12 months saw insurance company executives keen for growth and throwing significant discounts to our customers with a strong focus on retention. Our thoughts are that the soft market is here for a while, despite the low interest rates, until poor profitability hits the bottom line of the capital providers in a significant way. We do not expect significant withdrawal of capacity or hardening of the market.
",,KPI Broking,01.07.2016,,Read More,Same Window,