1441684-burmac-financial-services

Cyber Attack – Planning and Response

Tue, 15 Apr 2025 00:10:00 GMT

Businesses of all sizes need to be ready for when a Cyber Attack occurs, Not If, having a clear action plan is essential.

In 2024 there were 87,400 cyber crimes reported, each with an average cost of:

Small business $49,000
Medium business $62,800
Large business $63,600

Aims of Cyber Hackers Include:

Stealing personal or confidential business data or funds,
Identity theft
Extortion demands by encryption or destruction of critical data or infrastructure.

1. Be Prepared - have a Plan

The key elements include:

Managing Cyber Risks - who has responsibility internally for planning, detecting and responding to cyber security incidents;
Test your Plan - conduct some trial cyber incidents to see if the plan is working;
Cyber incident contacts who needs to be informed when immediate assistance is required, this should include your insurer or insurance adviser, are you required to notify a regulator;
Australian Cyber Security Centre: E: asd.assist@defence.gov.au; Ph: 1300 CYBER1 (1300 292 371); Online: cyber.gov.au

2. Active management of Cyber Risks – includes ongoing staff training, updating IT systems and software and multi-factor authentication. What are your key systems, data and accounts, and where are they backed up to?

The Australian Government provides a cyber incident response guide

3. Cyber Insurance - can help manage the financial and regulatory impact, it can cover damage to your systems, loss of income and legal liability to third parties.

Need help reviewing your cyber security strategy? Talk to us today.

Is Your Business Changing – Here’s a Quick Insurance To-do List

Tue, 15 Apr 2025 00:08:31 GMT

Here’s a quick guide to make sure you still have the right type and amount of cover for your key financial risks as your business undergoes change.

Consider new risks: As your business changes or grows, new risks can emerge. For example, new products may need to be advised to your insurer, product recall or errors and omission cover considered if your giving sales advice.

Existing insurance cover: Ensuring you have the right type of cover is essential. If you import directly from overseas, you may need Marine Cargo as well as Marine Transit or you may need to purchase cover for importers liability, not just retailers' liability.

Review sums insured: sums insured for Buildings; Plant & equipment should be updated to reflect costs have increased 20% - 30% over the past 2 – 3 years. Have new stock or new locations been considered?

Review excesses: Consider adjusting your excess, it may reduce your premium and better align with your risk tolerance for the next year.

Partner with a trusted insurance adviser: Work with an experienced insurance adviser who can work with you and discuss the best risk and insurance options for you and your business.

Protect Your Business as It Changes

Spending time to review your key financial risks, type and amount of insurance cover will reduce potential gaps and ensure the major financial risks are covered.

Speak to us today, we'll be able to discuss your plans and options.

Navigating Opportunity: Interest Rate Cuts and Business Planning

Tue, 15 Apr 2025 00:05:30 GMT

The Reserve Bank’s welcome announcement of a 0.25% interest rate cut was the first in over four years, reducing the cash rate by 25 basis points to 4.10%.

Impact on Business

The reduction in interest rates will be welcome, assisting businesses in lowering borrowing costs and creating certainty that increasing interest rates were a thing of the past and enabling a review of investments in new plant & equipment.

Implications for Employment and Staffing

Cost of workers remains high and the impact of the Cost of Living Crisis will continue to impact consumer spending in many areas.

Considerations for Business Growth and Planning

While the interest rate cut presents opportunities, businesses should also be mindful of potential challenges. The change in government in the USA and Ukrainian war both are areas for caution.

Tariff wars could disrupt supply chains, energy, costs and weaken the Australian dollar.

The RBA's decision to lower interest rates introduces a more favourable environment for business, however persistent cost pressures and global economic uncertainties need to be considered.

Talking to your professional financial and insurance advisers can assist in understanding your options and planning.

Electric Vehicles & Insurance Considerations

Tue, 15 Apr 2025 00:04:05 GMT

Electric vehicles (EVs) are transforming corporate fleets, offering environmental benefits such as lower emissions, along with cost advantages like reduced fuel and maintenance expenses.

Operating EVs requires careful consideration of unique factors, such as operational range, potentially higher costs for parts, and battery recharging coverage.

Key Considerations for EVs

Repair and Replacement Costs – EV parts and repairs are generally more expensive than those for traditional vehicles. Repair times may also be longer due to the limited availability of parts.
Battery-Specific Risks – EV batteries can be damaged by rough roads, accidents, or improper charging. This could result in costly repairs or even a battery fire, making regular maintenance essential.
Charging Infrastructure – Installing on-site charging stations requires a risk assessment. While public charging stations are becoming more widespread across Australia, both options help extend vehicle range and usability.

These factors can also impact your insurance cover. Stay ahead of the curve by consulting your insurance adviser about your plans - they can provide guidance on potential insurance implications and costs.

Why Succession Planning is Essential for You and Your Business

Mon, 14 Apr 2025 23:59:53 GMT

Planning for your succession will provide certainty for you, your employees and customers.

The Best Time to Start Planning? Now

The ideal time to plan your business exit is now. Proper succession planning involves considering key questions, such as:

How your business structure will impact a potential sale and tax;
Where a suitable buyer might come from;
How the purchase could be funded;
Whether there’s an optimal time to sell from a capital gains perspective; and
What level of involvement, if any, you’d like to maintain after stepping away.

Preparing for the Unexpected

Succession planning isn’t just about voluntary exits—it should also account for unforeseen circumstances like illness, disability, or death. This is particularly important for businesses with multiple shareholders.

The right insurance can make all the difference. Having life, trauma, or total and permanent disability (TPD) cover ensures that a business can transition smoothly in difficult situations.

If your business relies heavily on one key individual, key person insurance can help protect it from financial instability in the event of their unexpected departure.

Run-Off Cover: Protecting Yourself After Exit

For business owners in professional services, selling the business doesn’t always mean a clean break. If a claim arises after you’ve exited, you could still be held personally liable, purchasing run-off cover can protect you from legal defence costs and damages.

Securing Your Business’s Future

A well-structured succession plan, supported by the right insurance, can safeguard your business, employees, and financial future. If you’d like to review your current arrangements or explore your options, contact us today.

Emerging Threats: AI and Cybersecurity in 2025

Thu, 13 Mar 2025 04:11:37 GMT

Emerging Threats: AI and Cybersecurity in 2025

Artificial Intelligence (AI) has rapidly evolved, becoming both a powerful tool for innovation and a potential weapon for cybercriminals. As we enter 2025, the integration of AI into business operations has brought about both opportunities and unprecedented challenges in cybersecurity. Organisations must now grapple with a new wave of threats that leverage AI’s capabilities to target vulnerabilities more effectively and efficiently.

Understanding AI-Driven Threats

AI-Generated Phishing Attacks : These attacks use sophisticated language models to craft personalised and highly convincing phishing emails. Unlike traditional methods, AI can analyse user behaviour to tailor its tactics, making it far more likely to deceive victims. Businesses must adopt advanced email filtering systems and train employees to recognise subtle signs of phishing.
Deepfake Technology : Deepfakes are hyper-realistic audio or video impersonations created using AI. They are increasingly used in social engineering attacks, where cybercriminals mimic CEOs or executives to authorise fraudulent transactions. To counteract this, organisations should implement multi-step authentication processes for sensitive approvals.
Automated Malware : AI enables malware to adapt and evolve during attacks, making it harder to detect and neutralise. These programs can independently scan systems for vulnerabilities, exploit them, and even spread across networks without human intervention.

Proactive Defence Strategies

Invest in AI-Driven Security Solutions : Deploy cybersecurity tools that utilise machine learning to identify and respond to unusual activity in real time.
Regular Training and Awareness Programs : Ensure employees understand AI-based threats and can act as a first line of defence.
Develop Robust Incident Response Plans : Outline clear steps to mitigate damage in the event of a breach.
Engage with Cyber Insurance Experts : Policies tailored to your organisation’s needs can provide critical financial support after an attack.

As the cybersecurity landscape evolves, staying informed and proactive is the only way to maintain resilience. Consult your insurance adviser to review your coverage and explore cyber-specific policies that address emerging threats.

Managing Business Risks

Thu, 13 Mar 2025 04:00:33 GMT

Managing Business Risks

Running any size of business comes with risks and rewards which vary from business to business, from dealing with hazardous goods to protecting sensitive personal data.

There are lots of free resources about identifying and managing risks including:

Risk management guide for small to medium businesses from CPA Australia; or
Managing Business Risks from the Federal Government .

Why Manage Risk?

By managing risk, you can reduce the financial and reputational impact of unexpected events, also:

Improve your relationships with customers, suppliers, employees and the community, by understanding and managing their expectations
Improve staff confidence in a safe work environment, through workplace health and safety (WHS) and workers’ compensation insurance
Keep your business open during natural or economic disasters, by having an emergency management plan
Reduce your compliance and insurance costs, by having a lower risk of damages.

Risks That Need to be Managed

You're required by law to manage some risks. For example, you must manage or reduce the risk of:

accidents and injury of customers or employees by making your workplace safe under work health and safety (WHS) laws;
customer complaints by treating customers fairly under Australian Consumer Law
damaging the environment by meeting the environmental laws that apply.

Maintain the Right Type and Amount of Insurance cover

As your business evolves, so should your insurance coverage . Regularly review the mix of insurance cover and sums insured to ensure they align with your risks and activities.

Get Professional Guidance

Navigating risk management isn’t always easy. An experienced adviser can help assess your needs and ensure you have adequate and cost-effective protection .

Your 2025 Small Business Insurance Checklist

Thu, 13 Mar 2025 03:46:25 GMT

Your 2025 Small Business Insurance Checklist

Insurance is an important way to manage and reduce the financial impact of business risks for your:

Customers & employees;
Earnings;
Assets (plant & equipment, buildings and stock); and
Personal assets of directors and managers.

What Insurance is Optional & What's not?

Your business may need certain types of insurance, like compulsory CTP or workers compensation. Others like professional negligence may be required by your professional association, such as doctors or accountants, or your clients.

Other types of insurance are your choice.

Workers compensation insurance – compulsory of you have employees

Employers must have workers compensation insurance before starting to operate. It covers employees if they become injured or sick because of work.

If you employ a contractor in your business, check to see if your need to include them under your workers compensation policy.

Sole traders – optional death, illness and disability insurance

If you’re a sole trader, workers compensation insurance doesn’t generally cover you. You’ll need to get your own personal death, illness and disability insurance. This will pay a lump sum if your permanently injured or loss of income for short term disability.

CTP insurance is compulsory if you own or operate motor vehicles

CTP covers injury to passengers and pedestrians. This is separate to comprehensive or Third-Party Property damage cover, which is optional.

Property & Business Interruption insurance

These are optional insurance policies, designed to protect buildings, stock, plant & equipment and other physical assets, whether you own a farm or a wholesale business. Typically, the policy includes cover for loss due to fire, burglary, glass, storm damage and accidental damage. Cover can also be purchased for Goods in transit, machinery breakdown.

Business Interruption covers the resultant loss of income or increased costs of working following loss or damage to your property.

Public & Products Liability insurance

This insurance protects legal defence costs and damages awarded by a court if found responsible for injuries to another person or damage to their property.

This may be from a slip and fall at your premises or injury form a product sold by the business. Additional cover can be purchased for product recall, advice provided related to goods sold and

Management liability insurance

This insurance covers directors, officers and managers for claims against mismanagement. It covers legal defence costs as well as court awarded damages against individuals, protecting their personal assets.

Management liability insurance can also cover crime against the company, breach of employment practices and cyber and privacy liability.

Talk to your insurance broker or authorised insurer about policy options for your business.

Cyber insurance

This helps protect your business from the costs of cybercrime. It can cover costs related to cyber extortion or ransomware, loss of profits and any resulting legal liability.

Where to get advice

Talk to your insurance adviser, they’ll discuss your risks and needs and provide advice and options for you to consider.

Regularly reviewing your insurance ensures you have the right protection in place for your business’s evolving needs.