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Starting a new business is an exciting chapter of your life, filled with growth and success. However, it’s also a period of your life where you need to figure out many things to ensure that your business is successful and obstacle-free. That’s why insuring it is important. Aside from insurance being a legal obligation, it’s also a crucial step in protecting your hard work and investment from unforeseen risks. That’s why we will talk about some of the essential steps to getting your business insured.

Why You Need to Insure Your Business

First of all, let’s see why you need to make sure your business is protected. Business insurance is similar to a safety net, catching you when things go wrong. No matter how carefully and meticulously you plan things, unexpected events can happen, and without insurance these events could potentially cripple your business financially. 

For instance, imagine a fire breaking out in your office, a customer getting injured on your premises, or a lawsuit being filed against you. Without proper coverage, the costs associated with these incidents could be astronomical. That’s why it’s important to find the right insurance brokers that will lead you through this process and help you pick out the best coverage for you. 

How Insurance Brokers Can Help  

Confusing information and advertising that might be misleading is a fairly common practice in some parts of the insurance sector. For this reason, the services of insurance brokers can be very valuable, as they can provide objective advice about taking out insurance, always looking after the customer’s interests. 

An insurance broker is a person who acts as an intermediary between the customer and the insurance company, giving advice and recommending the company, type of policy, and the clauses that are most suitable for you. They are a qualified professional with extensive experience and knowledge of the insurance sector. 

They have the freedom to offer independent advice and they protect the interests and rights of their customers when they take out insurance, they choose a company, negotiate clauses and report incidents. What is the purpose of an insurance broker? Their main functions are to advise customers on everything related to the policy that they need to take out, prices, what guarantees the policy does and does not cover, advantages and disadvantages of each type of policy. 

Another function is to act on behalf of the customer at all stages of the procedure: contracting the policy, the choice of clauses, etc. They protect the interest of their customers, taking care of the assets at all times as well as analysing the customer’s real needs and, depending on what they are, offering the most suitable policy. 

When looking for an insurance brokerage professional, make sure that they have experience and a range of skills to carry out their work properly. They must be familiar with the potential risks that each customer can face in order to advise them correctly, and they should have excellent communication skills to walk you through the process and to mediate effectively between you and the insurer, resolving any issues that may arise.

Type of Insurance For Businesses 

source: corporatefinanceinstitute.com

Even if you have the best insurance brokers, you still need to be familiar with different types of insurance to make the right decision. There are many types, each suitable for different situations and businesses, so it’s important to be familiar with them. Liability insurance is fundamental for any business. It protects you against claims resulting from injuries and damage to people or property. 

There are different forms of liability insurance, including product liability related to protection in the case of manufacturing or sales of products, public liability that protects your business against claims from accidents that occur as a result of our business activities, and damages to third-party property. This insurance covers the legal costs, regardless of the outcome of the claim. 

Then you have business insurance which also has different subtypes. This insurance plays a vital role in the risk management strategy of all businesses, no matter the size. The right business insurance policy can be the difference between survival and bankruptcy, following a significant loss or crisis. One subtype is property insurance which covers damage to your business premises and contents from incidents like fire, theft or vandalism. 

Cyber insurance is also an important part of this, especially with the rise of digital technology. This insurance protects your business from losses resulting from cyber-attacks, data breaches and other cyber-related incidents. Commercial insurance encompasses a broad range of insurance policies, designed for businesses, including commercial property insurance which protects your business assets. 

Then you have vacant property insurance, which protects your property even though it’s vacant so that you can relax and won’t have to worry about your possessions. Insuring your business is not just a box to tick off, it’s a vital step in securing the future of your venture. By understanding the importance of it and finding the right insurance broker for you, you can protect your business from a wide range of risks. Remember the goal of the insurance is to provide peace of mind, allowing you to focus on growing your business without constantly worrying about potential pitfalls.

Many big and small factors ultimately determine the success of a company, and amongst many others – being cautious and protecting your business, your employees, and your products against legal actions. One certain way to do that is to get the proper insurance policies. Some policies are specific to certain kinds of businesses, like product liability insurance for instance, and others are quite universal and pretty much essential for almost any company or organisation – like the directors and officers insurance.

Why Would You Need a Directors and Officers Insurance Policy?

product-liability

For directors and officers of companies and organisations, things are getting more and more complicated when it comes to all of their obligations and responsibilities. These people answer to a lot of different entities or individuals: their companies, their employees, their customers, their clients, the investors, the shareholders, the beneficiaries, and most importantly the law.

And, while depending on the type of the company, as well as the size and other factors, their risks are smaller or bigger, all of these people are liable and prone to legal actions. And regardless of the size of the company or organisation, regardless of the industry or the field etc., they all have one thing in common: they can make a mistake, willingly or unwillingly that can cost them a lot!

There are many types of legal actions that can be taken against directors and officers. They can be sued for improper management, conflicts of interests, wrongful acts, errors in judgment etc. They can also be investigated by governments or regulatory agencies, etc. And the companies or the organisations can not only suffer a lot financially, but these cases can hurt their public image, even if no wrongdoings are found. And all of this is why it’s vital for any business to get a directors liability insurance and protect not only their employees but their entire business as well.

Upper management employees are very important in any business, and they are a huge asset. This is one of the reasons why they should be protected. In turn, this will be good for business in more ways. Aside from protecting the directors and officers and the business itself, directors and officers liability insurance is also a great way to attract good management members and keep them.

What Does the Directors and Officers Insurance Policy Cover?
D&O insurance provides protection for the board of directors or any individual who serves as a director or an officer in a company or an organisation. With this insurance policy, your upper management is protected from personal losses, and the business or the organisation itself can be indemnified for any costs, like legal fees, sustained during the lawsuits.

product-liability-2

Payable directly to the directors and officers, directors liability insurance policies typically run for 12 months. It can cover legal costs, damages, public relations, bail bond expenses, settlements, defence costs, persecution costs, etc. However criminal charges may be excluded from the D&O policy. Some companies also get a policy that includes former occupants of those positions, as a precaution. That’s because an individual that has previously worked as a director or an officer in a company or an organisation can become liable even after leaving the position.

So, in other words, the officers and directors insurance is the best, and probably the only way to be prepared for most scenarios in which they’d be liable. A good directors liability policy will ensure an immediate response which can be especially important in many cases and vital for the outcome of the claim.

Why Should You Find a Professional Insurance Broker?

Different companies or organisations have different responsibilities toward different entities or individuals. All of this can get quite complicated, which is why when you determine that you need to purchase a directors insurance policy, you should find an expert to help you make the right choice, as well as understand how exactly the policy works. A professional insurance broker studies the particular case, and they can make predictions about any potential events that could cause a claim, and offer appropriate coverages. They then advise the client on everything they’ve learned and about the policy, as well as which one is best suitable for their specific situation and needs.

When you are trying to obtain the D&O liability insurance policy the most important thing is to understand exactly what is covered by the policy you want to purchase. Furthermore, you need to learn about all the rules and responsibilities you have so that you will be able to claim coverage or compensation. Regardless of the insurance company, every policy will have some type of simple rules, which can determine if the insurer will reduce or negate the payment. Very often, if a claim is made against you, you should immediately contact the insurance provider, because otherwise, they might refuse your claim.

smsf provider

We’ve all heard about the self managed super fund and the fact that it’s becoming the most effective type of superannuation funds in Australia. The SMSFs hold one third of the total superannuation funds in our country and are especially popular among people who are planning their retirement and among those who are highly engaged with their superannuation. The most obvious benefit from the SMSF is the flexibility and the total control every member has over their fund. This means that even if you get help from a financial adviser, lawyer or any other kind of professional, you’ll be still the only one responsible for all the decisions made by the fund. The purpose of the SMSF is to provide its members with benefits during their retirement years, so if you have no knowledge in terms of finances, make sure you make some research on SMSF providers that will help you set up your fund for the future.

Before you choose your SMSF provider, get familiar with their policies and their fees. It’s crucial that you understand all the information they will provide you with. Make sure that the provider you’re going to choose is experienced and reliable. They should respect and value the professional relationship and commit to protect all the private information from their clients. But remember, in certain situations they may disclose some personal information if it’s required or authorized by the law.

Also, it is imperative to understand how each provider structures their ongoing fees for administration and reporting. Unless otherwise specified, all fees will be levied by the SMSF provider for the services outlined in the agreement you’re going to sign. Note that ongoing fees may sometimes be influenced by the member’s age, the number of assets they own and the total value of the fund.

If while making your research you come across some SMSF providers that have been on the marketplace for less than two years, be very careful, unless the individuals working there have been in the super industry for a long time. When it comes to the services, some providers will offer you the “complete service package”, but think carefully before you sign on for one of these packages because they can be really expensive. Others may give you the liberty to choose which services you need the most and pay just for them.

In the end, the agreement you sign with the provider can be legally terminated by either you or them by providing 30 days notice in writing, normally without any additional fee. The provider on the other hand can also terminate the agreement immediately if you fail to pay the fees and the services provided by them.

If you are a curious person who constantly reads and gathers useful pieces of information, you have probably already come across the fact that mortgage brokers are highly respected experts in the field of economics. These professionals play an extremely important role throughout the entire mortgage loan process for a mortgage broker serves as a financial expert and a middle-man (or a middle-woman) between the borrower and the lender (which usually is a bank). Researching and finding out which type of loan is the most suitable one for their client is among the most crucial activities of licensed mortgage brokers.

mortgage-broker

Since a mortgage broker’s job includes many responsibilities and requires many skills, becoming one isn’t exactly a quick and easy mission. Read on to learn how to become a mortgage broker (a licensed and successful one, of course).

1. COMPLETE THE APPROPRIATE TRAINING COURSE AND OBTAIN THE CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING.

The Australian Securities and Investments Commission currently stipulates that the aforementioned certificate is the minimum education requirement for each individual who wants to start a career in the mortgage broking industry. However, if you choose to begin this professional journey of yours as a member of a certain brokers group, you should learn how to become a mortgage broker according to the organization you have selected. Many new mortgage brokers decide to give this option a chance because joining a brokers group offers a lot of great benefits, including full training, immensely helpful pieces of expert advice from at least one experienced and successful mortgage broker (mentoring services), and all the tools an individual needs to kick start their mortgage broker career.

2. WORK AS A CREDIT REPRESENTATIVE FOR TWO YEARS.

If you haven’t worked in the financial services sector for at least two years, you will have to operate as a credit representative for a two-year period once you obtain the certificate mentioned above. During this relatively short period of time, you will work under a license holder. However, this doesn’t mean that the licensee will be your employer. The licensee will only supervise your work and see whether you comply with legislative and industry requirements or not. At the end of the second year, if everything is all right, you will be given the opportunity to choose whether you will continue operating as a credit representative of a license holder or you will apply for your own full license.

3. NEVER STOP IMPROVING YOUR SKILLS.

Successful mortgage brokers are the ones who are aware that constantly enhancing their communication, negotiation, and decision-making skills is a crucial part of their job. Never forget this.

insurance

Although for some it may be pretty straightforward, there are a lot of companies that either don’t really understand product liability insurance or they don’t believe it is necessary, which is why it is often overlooked. However, it is one of the most important aspects of a company’s overall insurance program and it should be taken seriously.

If you haven’t already guessed by the name, product liability insurance is actually intended to protect your business from claims related to the manufacturing or sale of various products such as food, medicine, and other goods to the general public. Whether it is a manufacturing flaw, some toxic substances in the product, design defects, an injury due to misuse of the product, even if it is not your company’s fault, you may still be found liable for damages. Very often these compensations are so big that a lot of companies are forced out of business, just because someone misused your product and the warning label wasn’t “specific” enough. And I’m not even going to mention the effect that this might have on the reputation of your company.

But, the two main reasons why you might want to get product liability insurance are knowing that if you get sued for some damage allegedly caused by your product, the insurance company will pay for the attorneys hired to defend you and the settlement costs of the lawsuit, and the second reason is the if you are planning on doing business with a retailer, you will have to show them evidence that your product has liability insurance.

So how do you know if your company requires product liability? Sometimes even importing or repairing a certain product is enough to make you liable. Here are some simple examples where product liability insurance is essential.

  • If you manufacture a certain product
  • If you commission the manufacture of a product or your company’s name appears on the product
  • If you are using components or materials from an unidentified supplier
  • If you use imported components and materials that don’t meet Australian standards

It is very important to understand that when you are selling goods, they are required by law to be safe for their intended use and accepting those responsibilities shows that you care for the safety of your customers and you want to keep them aware of any risks regarding your product. This is why you should always provide clear instructions for proper use of the product, warnings of potential risks through proper and improper use, taking proactive measures in measuring and improving the safety of the product, and so on.

Overall, product liability insurance can really help your business. You can either get a complete of-the-shelf insurance package or you can have a specialist decide on the level of cover you need and have a tailored solution.

Save

SMSF or the self managed super fund is a special type of trust established to provide financial benefits to members in retirement as well to their beneficiaries. The trustees control all the investments made in the name of the superannuation fund and they have the freedom to tailor the fund according to their individual requirements and needs. The SMSF must be set up in accordance with the trust and super laws. Furthermore, it must include trustees, assets as well as identifiable beneficiaries.

Superannuation Trust Deed

The first and most important part of the set-up process is the superannuation trust deed. It is a legal document which actually establishes the SMSF and provides all the rules for operating the fund. The Superannuation Industry Supervision Act (SISA) requires that the governing rules set up by the trust deed establish the fund with the primary purpose of providing provision or old-age pension for the trustees. Furthermore, the deed must ensure that the SMSF will be operated following the superannuation laws.

The superannuation trust deed includes an establishment date and a clear definition for all the relevant laws. It also provides information about the process of becoming a member as well as important details on how all the proceedings, such as voting or investing, should be conducted.

The deed must also provide information about the investment power of the trustees. This includes all the rules and terms about who can actually become a trustee and under which conditions. It should set up the rules for the payment of benefits as well as the terms concerning the acceptance of contributions. The deed should also provide details on how and under what conditions the super fund can be wound up.

As the most important legal document that forms the governing rules, the trust deed must be prepared by qualified professionals that will make sure the SMSF is a complying fund that operates in accordance with the superannuation laws. Moreover, the deed must be signed and dated by all the trustees. It should also be executed following the state and territory laws. For the proper functioning of the super fund, it is necessary for the deed to be regularly reviewed and updated.

An efficient and well-established superannuation trust deed ensures that the trustees enjoy all the advantages that come with SMSF. These include great investment options, a freedom to control and organize their funds such as the option to make a transition of retirement pensions, as well as the opportunity to purchase or borrow property and other assets. It really has a vital role when it comes to maximizing the potential of the super fund and building a safe future for you and your family.

It is known that you cannot borrow money from your self-managed super fund, but the “no borrowing” has some exceptions just as any other SMSF rule. Before any consideration, SMSF trustees must know the difference between direct and indirect borrowing, and the special rules that apply to the no borrowing rule. Indeed your super fund cannot directly borrow money, but there are two exceptions: for paying a member’s (trustee’s) benefit or for urgent settling of a share transaction.

SMSF Loans

The latest changes to superannuation legislation have made borrowing money for property investments possible. Now, you can borrow money from your self-managed superannuation fund to pay for any type of property, including commercial, industrial, residential or even for a farm (under certain circumstances). If your SMSF has enough money that can be put down a deposit, the remaining amount of the purchase price can be borrowed. The SMSF loan can be either provided by the members of your fund or loaned from a financial institution.

The SMSF loan is set up with a non-recourse borrowing arrangement. In other words, you, the lender, are not allowed to recourse any other asset in the SMSF without the trustees giving you a guarantee. However, you should know that with the SMSF you can only partially pay for the property and all included fees. If you need to pay a larger deposit on an investment property, the investment bank might give up the requirements for trustees’ guarantee. In that case, the property will be the only security for the loan that matters, under the so-called limited recourse loan arrangement.

There are many benefits of the SMSF loan for purchasing a property. The greatest one is that you can sell your commercial property by the SMSF at market rates. Another benefit is that the assets of your SMSF are secure, since you are the only one with the right of recourse on the investment property. Using the rental income and super contributions, the loan is repaid conveniently. Also, the SMSF is only taxed at the net income, since the expenses and loan interested are deducted.

Before you loan money from your SMSF for an investment property, make sure your trust deed allows borrowing. Then, you should create an investment strategy of your super fund and include provision for your investment property. To service the loan, your SMSF must have some cash flows, which are usually achieved from trustees’ contributions, rental incomes and investment earnings.

The owners of investment property are you and your fund members, with your SMSF entitled to be the beneficiary. The bare trust is known as the title holder until the SMSF loan is paid off. After the SMSF loan is repaid, your SMSF has every right (not obligatory) to acquire the legal ownership of the investment property.

The number of international home buyers, from different parts in the world who buy properties in the USA, has been increasing in the recent years. One of the biggest investors in the US real estate market are the Australians, along with the Canadian and British citizens. There are many reasons why foreigners decide to invest in USA property for sale. The main factor more and more Australians buy properties in the USA, is the significant stagnation of the US housing market.

Foreclosure Homes USA

Dramatic fall of the prices of the US real estate was noted between 2009 and 2013. This was a result of the successive economic crisis. During this period, Australians accounted for 11% of the total number of foreign investor, and the number is rising. If you too would like to become an American property owner, here are the few things to keep in mind.

Step 1: Determine the type of property you plan to purchase

Before even doing the research on available USA property for sale, determine the purpose or simply said, what you plan to use the property for. Will you use it as a vacation home or will it be your long term residence or will it only be used by your children who plan to study in the USA? Or maybe, you want to lease the property in order to receive additional income.

Step 2: Get to know the US real estate market

When talking about the overall US real estate market, it is important to know, that each USA state has own housing laws and regulations. This means that many segments can differ for state to state, such as: the type of purchase contract, the titles and duties of people who are assigned to conduct the selling process and the method of closing the sale. Thus, get to know the US market you plan to invest in.

Step 3: Consult with real estate professionals

The process of purchasing USA property for sale can be a daunting one. Since you will be investing larger amount of financial assets in a real estate market you are not familiar enough with, seek professional help from experienced real estate agents. Hire an experienced and licensed real estate agent, inspector and attorney. They will represent your legal rights and will protect your investment strategy.

Step 4: Get financing

As a foreigner buyer of the USA property for sale, you may come across many requirements, especially when it comes to the banks. Usually, most banks ask foreign investors to provide a specific amount of financial deposit and to set certain limits to the loan. Some banks require at least $100,000 deposit, while others may require higher number. The US loan market offers affordable and safe loans for foreign home buyers who have good credit scores. It is up to you to decide which kind of financing you will choose.

A SMSF is one of the most popular retirement investment options in Australia. This is due to the fact that this type of fund offers great investment flexibility and no restrictions concerning it. Aside from this, SMSF offers full control over fund assets and better investment options. The greatest advantage of running a SMSF is the fact that it provides great control over investment possibilities. For example, a property investment strategy is a great option. It offers significant tax benefits and also provides the ability to invest without affecting personal funds.

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If you are looking for more flexibility and a greater control over your DIY superannuation, then this simple guide may be for you. With the rising demand for super funds, they have become the number one choice of many future retirees as the preferred structure to invest their retirement assets. If you are considering setting up a DIY superannuation, you should educate yourself about it and get the right and professional advice from licensed financial accountant or planner before you proceed.

Boost Your SMSF

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