Q: Hi, I started a little business making cakes and sell at the markets and privately through word of mouth. It’s starting to do really well and would like to ask if I should have some sort of insurances in place. The turnover was just over 40k to June 2018 and now doing about $7,000pm. I’d appreciate some help, thank you
A: Congrats on your new venture. As you’re dealing with food, it is critically important that you protect yourself against any potential exposures, in particular product liabilities.
I am an insurance broker and can assist you through the process as I insure many food operators.
Call me on 0410565101 or email firstname.lastname@example.org
We are about to make a decision on which builder to use for our renovations.. we have 3 contracts around $600- 650,000 and they each have different insurances quoted. Is there a way to make sure the builder we choose has the right insurance in place? What do we need to be looking out for? thanks
A: builders can on-charge any insurance amount they think they can get away with. In terms of the correct insurances, ensure they have a contract works policy (liability + material damage) policy in place and if required by the local law, home builders warranty which would be likely on a smaller renovation such as yours.
Q: About to start renovating the kitchen, bathroom and do some landscaping. We’re managing the project but because we have different tradies and suppliers coming through the house do we need to do anything with our insurance. What do we need to do to make sure we’re protected if the tradies get injured?
A: Hi David, in my view, most home and contents policies won't respond to an incident where there is payment for commercial work on your property. Ensure they have a contracts works policy in place which will cover their liability along with material damage or at very least a stand-alone liability policy of no less than $10 Million.
If they don't qualify for Worker Compensation as sole traders, they should carry a personal accident & sickness policy in lieu of workers compensation.
It is a must that they carry both policies.
Q: I have a client with some low value tools of trade, vehicles and excavation equipment. Is it possible to insure these for 3rd party property and public liability with a blanket policy? He is trying to keep the premium low without being exposed.
A: I agree with Charles with regards to the general property cover for tools but the excavation equipment requires more complex cover than just public liability.
Everyone in the world wishes to keep their insurance premiums low but appropriate cover with regards to the excavation equipment or more accurately, mobile plant, should be put in place as third party public/product liability comprises of only one cover available that should be considered with such equipment.
I have put many mobile plant policies in place and am also happy to assist.
Q: Im in the building game, just wondering if when invoicing, do i charge Tax on the whole of the price (labour and materials) or just gst on the labour alone, as materials have already had tax applied at time of sale from my supplier, meaning the taxman would be getting a double slice of pie as tax then has been applied to the materials twice?
A: I would ensure the hourly rate you are charging is for example $55 per hour which would represent $50 per hour + $5 GST. This would then allow you to charge GST on the whole amount as you definitely want to on-charge the GST you have been charged on your materials.
On another tack, if you need a hand with your business insurance, by all means let me know as I am a local insurance broker.
Q: I have just had my fourth child and my wife would like me to update our life insurance, How do i work out the amount?
A: This amount should be calculated on essentially covering all expenses to your family over their typical lifetime. That said, the higher the sum insured, the higher the health requirements required by the insurer. In my view $10 million is quite a high limit but if you are healthy, this should present you no problem in getting set and would provide significant financial benefit to your family.
Q: I am going on a 10 day South Pacific Cruise in January. How important is travel insurance, and where should i look to purchase it?
A: Hi Adam, you definitely should purchase some sort of travel insurance.
Ideally if you or your company had a corporate travel policy, most will cover you and your family even for leisure. Additionally, corporate travel policies perform far better at claim time.
Q: Does it make sense to use the equity in your property to purchase a private vehicle versus a lease or personal loan with regards to the interest rate?