NECA Group

Business Tips to Consider

NECAGuard is the endorsed insurance brokers for NECA members. Over 350 members currently enjoy the tailored insurance coverage specifically for NECA members, along with the sound and personalised advice which NECAGuard has to offer. For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

Here NECAGuard will offer business tips to be aware of when renewing or looking for a new insurance policy.

 

Tip 1: Review Your Business Description

Have you reviewed the business description or activities listed on your Public Liability policy recently?  Does it just say electrical contractor or Electrician?  Insurers use a very narrow definition of electrician and will usually only provide cover for the activities listed.

NECAGuard recommends to review your business description annually and ask your insurer or broker to add any activities not listed.  Some of the activities that should be stated include Data & Telecommunications Contractor, Security System Installation, Solar system design and install.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 2: In the face of Covid-19 review your turnover and employee numbers

The primary rating factor for a Public Liability premium is often turnover or employee numbers.  Insurers use this as a way of determining the overall exposure for your business. A higher turnover indicates an increased chance of a claim occurring or an increased cost of a claim. 

NECAGuard recommends that when it comes time to renew your policy, take the time to review the estimated turnover or employee numbers for the upcoming year.  This is particularly important if you are estimating a decline over the next 12 months due to COVID-19.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 3: Keeping track of your unspecified items

When keeping track of your unspecified items Tools of Trade or General Property policies are a great way to insurer against theft of tools from locked vehicles, site lockers or private residences.  Most policies offer you an amount for unspecified Items.  This makes the quote process quick and easy but don’t expect that the insurer will simply hand you a blank cheque in the event of claim.

What to do in the event of a claim?

Most insurers will most likely ask you to provide evidence of the loss, which will often include providing original ownership.  We recommend keeping a spreadsheet of all your tools and save various copies of the original purchase invoice (USB, iCloud etc.).

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 4: Pay your Worker's Compensation premium in monthly installments

Unlock your cashflow by paying your Workers Compensation premium in 10 monthly instalments.  If you have other policies with NECAGuard we can combine all policies into one instalment on a monthly basis.  Whilst there is an interest charge and a small application fee, this may be partially offset by accessing available pay on time discounts.  Also, remember the interest is usually tax deductible!

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 5: Think about cover for if you get injured outside of work 

Have you ever thought about cover for you if you get injured outside of work? You will have workers compensation which will cover you (if you pay yourself a wage) and your employees for injuries connected with the workplace.  However, having a personal accident policy is a cost-effective way to provide income protection for an injury sustained outside of work. 

What should a sole trader do? If you are a sole trader that isn’t required to have workers compensation, a personal accident policy can also cover you for workplace injuries. 

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 6: Check if your policy has restricted locations exclusions

Have you checked if your policy has restricted location exclusions? Some Public Liability insurance policies may have exclusions for work done in certain locations or industries.  Commonly excluded areas are mines, quarries, airports or airfields, power generation and rail.

What do you do if you have a claim from work in an excluded location? Well, you likely won’t be covered.  An insurer may also limit cover for other claims if they determine a non-disclosure of work in an excluded location, meaning they charged the wrong premium.  NECAGuard specialises in cover for contractors working in hazardous areas and may be able to provide you with a policy for the adequate cover you require.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 7: Check the builders Contract Works policy also covers you

Have you checked lately that your builders contract works policy covers you? Traditionally a policy taken out by a builder or principal - Contract Works covers a project, including materials, against damage during construction.  This also includes cover for theft of materials, such as copper wire, from a building site even if already integrated into the unfinished project. Whilst the principal or builder will usually take out a policy that covers all the contractors, principals and builders are increasingly trying to reduce costs by not extending cover to contractors or taking a large excess which they force you to pay. 

What should you ask for when taking out  builders contract work policy cover? You should ask for confirmation that contractors and subcontractors have been included.  If not, you can take out an annual policy or a single contract policy of your own.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 8: You should be thinking about Cyber Insurance

Have you ever thought about cyber insurance? With more people working from home, small businesses are an attractive target for cyber criminals.  A cyber policy can cover you against ransomware attacks, business interruptions following hacks and social engineering.  A good cyber policy will also provide you with an incident hotline. 

You receive an invoice from a subcontractor for $15,000.  The following week you receive another email from the subcontractor asking you to make payment to new bank details, so you make the payment.  A couple of weeks later you are chased for payment by the subcontractor and it is realised that the new bank details were faked by someone who hacked your system. A Cyber policy with social engineering extension could cover this loss.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

Tip 9: Think twice before negotiating a claim yourself before notifying your insurer

It is the insurer’s right to defend a claim on your behalf.  If they feel your direct negotiations, admission of fault, incurring of legal fees or agreement to make payment to a third party has increased their costs they may only pay a limited amount or decline a claim altogether.

What can go wrong? We have seen claims where the third party has agreed to not get the insurers involved only for a letter of demand from a lawyer to later arrive demanding much higher costs. Attempts to further negotiate with the lawyers directly only pushed up the legal costs. Once the claim was eventually lodged, the insurer agreed to only pay the original estimated claim costs and not the legal fees.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

Tip 10: Consider what Public Liability Policies cover

Why do Public Liability Policies have a faulty workmanship exclusion? Public Liability policies are designed to cover you for an injury to another person or for damage you cause to another person’s property. The policy isn’t designed to be a warranty on the quality of your workmanship, so they don’t cover damage to the part you were working on or the cost of correcting/improving your work.

What does the policy cover? The policy will usually still cover any resultant damage following faulty workmanship. As an example if you had installed a large light fitting that later fell to the ground - you may not be covered for the cost of installing a new light, but you would be covered for any damage caused to the flooring or if the light hit someone in the head.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

Tip 11: Consider a Professional Indemnity service

Have you considered Professional Indemnity? Professional Indemnity provides you cover for mistakes you make delivering your professional services that cause a financial Loss for you customers. NECA members may be providing a large range of professional services either as a stand-alone service or as part of installation and maintenance work.

NECA recommends that when it comes time to renew your policy, take the time to review what professional services are included in your policy. Professional services could include: Testing & Tagging; Design of: PV Solar Systems, Switchboards, Security Systems; Fire Safety Assessment and Design for Emergency & Exit Lighting; PLC and SCADA. The preparation of plans, specifications, calculation and designs is also considered a professional service.

For more advice, get in touch with a NECAGuard Representative on 1800 335 014 or email necaguard@neca.asn.au

 

 
 
Contacts
NECA GROUP
☎:1300 361 099
@:necagroup
✉: 122 Hume Highway, Chullora NSW 2190

 

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