Did you know that most Management Liability and Business Pack Insurance Policies have Tax Audit as a coverage item or additional benefit?
The increase in the number of audits being conducted by the Australian Taxation Office, and the State Revenue Office is significant. A Management Liability and Business Pack policy will typically extend to cover the often substantial associated costs to your company.
Coverage limits can be anywhere from $10,000 to $500,000 depending on the size of your business or the limit allowed by the underwriter.
A standalone policy cover for Tax Audit costs can be obtained, however when a comparison on cost and coverage versus a management liability policy is undertaken, you could find yourself as a small to medium enterprise, very exposed.
As a business owner or manager, you have enough on your plate – sales, managing staff, marketing, and developing customer relationships. It’s all very intimidating when you then have to consider things like company legislation, tax laws, employment laws, statutory regulations and workplace health and safety legislation!
You can also find yourself in hot water as a result of decisions your staff make – some of which you have no control over.
Management Liability insurance can protect you and your business from a wide range of potentially
devastating risks associated with managing a business – big or small.
We’ll take a look at some of these risks and just how Management Liability cover has saved the day.
In this day and age, there’s a wide spectrum of risks that business owners and managers face. Minimising exposure to risks such as the following should be front of mind:
- Breaching directors’ and officers’ duties
- Your company breaching laws and regulations
- Unfair dismissal or workplace bullying allegations
- Employee or third party fraud
- Expenses from tax audits
Of course, all these risks can immediately damage your company financially, but the flow on effects can be felt in the long-term through lengthy and costly litigation. You can’t control them either. What you can do however is protect yourself.
This is where Management Liability cover comes in.
What to do when you have a cyber-attack?
The evidence is clear. Cyber-attacks are on the rise and small businesses in Australia are feeling the brunt of them. At some point your business will experience a cyber-attack and if successful the consequences could be disastrous.
To help you we have created a simple guide for small business owners based on expert opinion in the IT, cyber-attack recovery and insurance industries.
What to when you have a cyber-attack.
- Don’t Panic
It’s happened. How you now respond will have a critical bearing on the success of your recovery plan. So be calm, breathe deeply and know that this too will pass.
- Put your cyber disaster recovery plan in action
Just as when your business has a fire you have an evacuation plan, so it is with a cyber security breach. Both events are unlikely, though a cyber-attack is 10 times more likely than a fire, but with equally devastating effects. Put your recovery plan to work. *
- Contain the breach
Do not try to fix it, delete everything or pay the ransomware yourself. The cyber security experts need the evidence to assess how it happened, who was responsible, the impact and to develop remediation plans.
✓ disconnect from the internet
✓disable remote access
✓ change business critical passwords
- If you have cyber insurance, call your broker. Immediately
This is why you have cyber insurance. So that the experts are called in to fix the mess. Put in place a remediation plan. And your broker is the go-to person to pull it all together. Claim time is the moment of truth and your broker is your advocate.
- Contact your IT team
Once you have spoken to your broker then contact your IT team. They will provide the support that the cyber security experts will need. But please be aware that detection, elimination and remediation of cyber security breaches are skilled jobs.
Alternatively, if you don’t have cyber insurance, they will need to put into effect their disaster recovery programme for a cyber-attack. It is likely to involve the very significant out of pocket expenses.
- Get cracking yourself
If you have neither cyber insurance nor an IT team it’s all on you. In which case you will need to do all the following:
- Call in specialist IT cyber security team
- Determine the scope and nature of the breach which could result in any number of the following:
- Notify the Office of the Australian Information Commission if there has been any loss of private data
- Notify any affected customers and suppliers.
- Put in place a compensation plan for any losses that your customers, or suppliers had.
- Fix the breach and put in place actions to prevent any future attacks being successful.
All of which will take a lot of your time, focus and money.
If you want to know more or get some further advice and help with this, please feel free to contact us – Agile Services on 1300 4 AGILE. It’s what we do for all our clients that ask.