Risk Management

Important Information for your Business Insurance.

Changes & Developments:

Changes and developments may occur which could have a bearing on the adequacy or efficacy of your insurances.

The following list should be used as a guide to areas of activity which should be notified immediately they are proposed or occur so that steps can be taken to ensure your organisation remains adequately protected. It is not exhaustive, so when in doubt it is imperative that you advise your insurer immediately of anything that would materially alter your present cover.

• Acquisition, construction or occupancy of new premises, alteration; vacation, temporary unoccupancy, extension or demolition of existing premises.
• Increases in value in excess of policy limits for buildings, plant, machinery or stock (whether due to acquisition, economic inflation or exchange rate fluctuation), or entry into contracts which limits cover.
• Alterations to or disconnection of fire, sprinkler system or burglary protection systems.
• Contractual liabilities assumed and legal rights contractually relinquished or diminished, or any contracts which impose onerous conditions.
• Changes in processes, occupancy or products and extensions of business operations, including new products or processes.
• Hiring, leasing or borrowing of plant and equipment.
• Director and executive or employee travel overseas including air travel other than as a commercial passenger on licensed aircraft including the charter and operation of aircraft and watercraft.
• Foreign trade, developments involving exposures beyond Australia, overseas acquisitions or exports of products in particular USA. Most liability policies automatically exclude USA

Risk Management Procedures:

Whilst Fitzpatrick & Company makes every effort to minimise the costs of the insurance program, the best method of controlling the long term cost of risk is to employ risk management practices to minimise the potential for loss. The following procedures cannot substitute for a formal risk management program, but form the basis of good management practice:

• Maintenance of premises in good order and condition to minimise destruction, damage or injury to persons.
• Maintain all automatic sprinklers, hydrants, hoses, fire extinguishers and fire alarms. Fire resisting doors must be kept clear at all times.
• Control flammable or hazardous material in accordance with statutory requirements relating to quantities, use and method of storage. Breach of government legislation or council by-laws may result in insurers denying liability in respect of claims.
• Maintain security systems and equipment.
• Maintain roofs, gutters, down pipes and drainage or plumbing systems to avoid water damage.
• Keep floors continually clean and remove substances which cause the floor surface to become slippery or dangerous.
• Ensure that all employees wear suitable footwear and protective clothing.
• Ensure that employees responsible for lifting heavy or bulky objects are instructed on lifting procedures.
• Train employees in the operation of fire fighting equipment.
• Ensure that vehicles stored within premises overnight are immobilised. Do not leave keys in ignition.
• Ensure that materials do not accumulate alongside buildings as they are attractive to vandals or arsonists.
• Enforce a smoke free working environment to reduce fire risk and to reduce the possibility of health related legal proceedings.
• Ensure that contractors on site are properly supervised and follow safe working procedures (i.e. hot work permits etc.)
• Ensure that employees understand safe work practices and that all machinery safeguards are functional.

Compliance with safety regulations:

Insurance policies require adherence to Government regulations in respect to safety and health regulations.

Breaches of regulations may void an insurance contract.

It is important that regulations particularly in relation to welding, storage of inflammables and discharge of toxic matter are strictly complied with.

We recommend periodical clearance checks with relevant authorities.

Liability policies are also subject to exclusions avoiding cover where the Insured has failed to exercise reasonable precautions to prevent injury or damage to property.