Cyber & Social Engineering Insurance – It is a growing area of risk

The law today states all companies have a responsibility to ensure that their client’s information is safe from harm’s way.  Your company may be held liable for any loss of client data or any resultant losses to third parties.  The problem for all of us, it is a moving target when it comes to technology and keeping up with how to protect your company’s data. 

These days most of our information is stored on-line in some capacity in our website or electronic records and the ability for hackers to enter our systems is getting easier as hackers are getting more sophisticated and clever in how they manipulate their way into our working and personal lives.

It creates destruction and devastation to those who are affected,  you, your business and your clients, especially if a financial impact occurs or black mail results from the hack e.g. phishing. viruses, malware.   

Minimising your Cyber risk to your business

It is important that cyber insurance becomes part of your ordinary business insurance requirements.  As a strata manager, you store a lot of information and not having cyber insurance to protect losses and costs associated with any cyber-attack, breach, extortion or financial impact would be disruptive to your business and you could attract a fine as the law has been broken and in some cases bankrupt the business.   

Having cyber insurance is a risk management tool, however it is equally important to ensure that your IT security systems and software are up to date. 

Good reasons to consider this cover

By having, a Cyber insurance policy in place provides you with protection against losses and the associated loss of reputation, financial loss but also assists, in making sure your Company survives a hack.

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Voluntary Work for your Strata Company

Did you know that when you volunteer your personal service with your Strata Company, you can be covered for the voluntary work undertaken should you be injured?  However, the benefits available to volunteers via this cover is limited, including age restrictions (as an example). 

It is important to make a distinction between cover provided by Workers Compensation insurance versus Voluntary Workers insurance. 

Workers Compensation Insurance covers those who are deemed workers that are paid for their services, in kind or some other remuneration.    

Voluntary Workers Insurance covers those who perform work solely on voluntary basis without reward for their services. 

Workers Compensation, like Strata Titles, the insurance is governed by an Act and therefore both are statutory forms of insurance.   Voluntary Workers insurance is found in strata insurance, but the requirements for this type of insurance differs around Australia and whilst not mandatory in WA, it is a standard inclusion of a strata insurance policy. 

Primarily voluntary workers are covered for the insured events (i.e. Death; Total Loss of a hand eye, foot etc.), loss of income where employed and receiving wages or salaries, domestic assistance, travel expenses, home tutorial expenses, subject to the limitations, excess, terms and conditions of the policy.

Case study – Spring Cleaning Busy Bee

A Strata Company decides to have a busy bee on common area gardens during the warmer spring cleaning months.  None of the residents will be paid for their service.  As the work involved is only voluntary gardening, rather than contract work, the owners are able to save money towards painting the complex at a later stage by arranging the busy bee.  A question is raised at the AGM, are residents covered for an injury from an accident when volunteering for the Strata Company?  

Yes, this is an example of voluntary work and would fall under the coverage provisions provided by Voluntary Workers insurance.  It is always best to review your coverage and know what you are covered for, as age and cover is restricted. Knowing what you are covered for is one of many important aspects before deciding to perform voluntary work. 

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).

Contract with the Local Council to empty bins on common property

Recently it was decided at an AGM that the Strata Company would seek to enter into an agreement with the local City Council, to enter common property for the purpose of emptying the bins.

The benefit of this will see the Strata Company not have to employ a casual person to roll all the bins out weekly to the verge.  The local City Council will do this provided they enter into a contract with the Strata Company, as they don’t want to be liable for any potential damage they may cause. Will your insurance cover this?

1. All agreements should be legally drawn up – so legal advice is paramount.

2. Before you enter into the contract, you must advise your insurer, as some indemnity clauses can prejudice your insurance policy and trigger exclusions. For example, your insurer may not indemnify you for all actions and claims where such arises from negligence by the Third Party performing the work and whom you have signed a contract with that contains a full indemnity, with no rights to recover from the Third Party part or all of the claim.

3. Insurers, if the contract/agreement is proportionate and acceptable, they may endorse the policy accordingly or confirm it is acceptable as per the policy.

General Disclosure This article is prepared for informational purposes only, and is not insurance, financial or legal advice and should not be relied on as insurance, financial or legal advice. You should consult with a qualified insurance or legal advisor. PSC Property Lync Insurance Brokers is an Authorised Representative (AR 1235681) of Professional Services Corporation Pty Ltd (AFSL 305491).