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Business News NSW Northern Rivers

Aussie small businesses at risk of underinsurance

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Aussie small businesses at risk of underinsurance

Aussie small businesses at risk of underinsurance

Australian small businesses are at risk of underinsurance, with a recent report showing that many SMEs have become complacent and have no protections in place if a negative event were to occur.
Only 43% of small businesses think they are fully covered from insurable business risks, according to the newly-released bonus chapter of the Vero SME Insurance Index 2022.
While this shows a level of understanding among small businesses about their cover levels, 34% said they have no plan if something bad were to happen, the survey found. Some others haven’t even thought about what might happen or simply choose to cross that bridge when they come to it.
“Small businesses seem to be generally aware that they may be underinsured however due to the additional cost of increasing coverage some may have made a choice to not look further into their cover due to price concerns,” says Jane Mason, Head of Product Channels and Risk at SME insurance platform BizCover,
“What’s worrying is that the dangers of underinsurance can leave the insured in a worse situation if underinsured or not insured at all.”
The conditions are set for an underinsurance crisis
From floods, bushfires, and the Covid-19 pandemic to supply chain issues and the rising cost of living, Australian small businesses have had to contend with multiple problems in recent years.
This has had an impact on the revenue of many businesses, causing some to look for ways to save money.
Vero’s report suggests that SMEs with declining revenue are less likely to say that they are completely covered and are also less likely to have a plan in place for a negative situation.
“It’s tough out there. And unfortunately, some businesses put their insurance on the chopping block,” says Mason. “But what this also says is that the businesses who are more likely to be hit by underinsurance are already struggling.”
Exacerbating the issue is that rising inflation and major supply chain disruptions are pushing up the claims costs for insurance companies, which ultimately results in higher premiums across some types of insurance.
This can put businesses who are renewing their coverage at the same levels as the year before at risk, as the cost of equipment, stock or machinery has, in many cases, increased beyond what they were originally insured for.
“What was adequate cover a year ago may not be adequate cover now because of the rising cost of materials,” says Mason.
The risk of underinsurance
For Aussie businesses, what all this means is that some could be left with a serious financial crisis by not having enough insurance to cover their loss.
For example, say you insure your business for $100k and a fire rips through your store destroying it. Once you factor in the cost to repair your business, the total bill comes out to $160k in damages. That’s $60k you’ll have to pay out of your own pocket.
Another way you can fall into the underinsurance trap is by triggering a underinsurance clause.
These clauses are designed to discourage businesses from purposely undervaluing their assets and are triggered by underinsuring usually by 20% under the true value.
Importantly, this occurs even if the damages fall within the insured amount.
So, in the above example, even if the damages were only $40k, your insurer will not cover that full amount if the clause is triggered despite you having $100k of cover.
“Many people may think that the insurer will cover it since the cost of the damages easily falls within the insured amount but that is sometimes not the case if the business is underinsured,” says Mason. “If you purchase below what your business’ true value is, you could become responsible for the share of the loss and not receive full payment for your claim.”
What can small businesses do?
While the current situation is tough, there are some things Australian small business owners can do to avoid being underinsured.
Regularly scheduling some time to consider your exposure to risks could help avoid problems later down the track. This will allow you to consider what risks your business is exposed to and think about the possible scenarios that could happen if you weren’t protected in the event of a claim.
“It’s important to insure your business for an amount that is sufficient to cover not only the tangible assets, but the cost of repairs and any other variables that might leave you out of pocket,” says Mason. “After that, consider jumping online to compare quotes so you could then decide whether the price of the cover justifies the protection.”
While reviewing your cover at renewal is a great time to consider your options, you could check in at any point throughout the year.
And with inflation and the cost of claims rising, it’s become even more crucial to regularly keep track of the actual value of your building and business contents to avoid being left with inadequate cover if a claim were to arise.

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new SCHOLARSHIPS for women TO build careers in construction

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new SCHOLARSHIPS for women TO build careers in construction

 

The Institute of Applied Technology – Construction (IATC) has announced three new microskills to its suite of courses as well as fee-free training places for women.

The Institute is a partnership between TAFE NSW, leading construction company CPB Contractors, and Western Sydney University.

Co-designed with industry experts, microskills are online, bite-sized, self-directed courses. These three new microskills focus on topics critical for building capability in the construction sector now and into the future and include: Introduction to Women in Construction, Introduction to Sustainability in Construction, and The Role of Building Information Modelling (BIM) in Construction.

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The IATC is also furthering its commitment to encourage more women to kickstart a career in construction or upskill in their current role with the availability of 60 fee-free training places in its microcredential courses. The scholarships come at a time when the construction industry in Australia is facing a shortage of over 100,000 workers.

Applications are now open for the Women in Construction Scholarships, delivered by the Institute of Applied Technology Construction.

CPB Contractors General Manager Infrastructure NSW and ACT, Rob Monaci said, “As the pipeline of infrastructure continues to grow, particularly with the focus on housing and new energy, the need for more skilled workers is an industry-wide issue. We need to be doing more to attract people at all stages of their careers to transition into fulfilling careers in construction, particularly women.”

The microcredentials take eight weeks to complete and provide industry-specific skills recognised as evidence of competence. The microcredentials can be completed online or face-to-face.

Women in Construction Scholarship courses are aimed at high-growth areas and include:

  • Project Management Foundations in Construction
  • Introduction to Project Scope Management in Construction
  • Project Risk Management in Construction
  • Stakeholder Engagement and Management in Construction
  • Quality Management in Construction
  • 2D CAD Drawings and 3D Models in Construction
  • Introduction to Building Information Modelling (BIM) in Construction
  • Microsoft Office Foundations in Construction; and
  • Power BI Fundamentals in Construction

Director Operations Institutes of Applied Technology Helen Fremlin encouraged women interested in a career in construction to take advantage of the free microcredentials and said they promote a practical learning journey.

“Whether you choose online or face-to-face, these microcredentials include regular educator-led sessions. These draw on industry specific examples, tasks, and case studies to give students the opportunity to apply their knowledge and skills directly with the support of educators.

“Part of the eligibility process requires women to complete two microskill courses. Microskills are free, two-hour, self-directed sessions, a great way to help get you started.”

CPB Contractors’ Rob Monaci added, “The introduction of these three new Microskills focused on women, sustainability and BIM are really exciting as not only are they critical to the future of our industry, but they are also compelling in attracting new entrants to the workforce who are passionate about the role diversity, sustainability and digital technology plays in building the game changing infrastructure projects set to roll out across our cities and regions,” said Mr Monaci.

Western Sydney University Interim Vice-Chancellor and President, Professor Clare Pollock, said the suite of microskills and microcredential courses and scholarships will empower women in construction and will help to meet Australia’s workforce needs.

“The University has a proud history of opening up educational opportunities for students including talented women in our region. These innovative microskills and microcredentials will help students upskill and take advantage of skilled job opportunities in the fast-growing construction sector,” said Professor Pollock.

“Western Sydney University is pleased to partner with TAFE NSW and CPB Contractors to co-develop and co-deliver courses that integrate research-led learning with advanced technical and industry-based skills while boosting diversity in the sector.”

Successful applicants will be offered a pre-class connection session to meet other women and visit a construction site in Sydney.

TAFE NSW and Training Services NSW are also inviting young women in schools and parents across the state to register for a Girls in Trades virtual event on the 22nd of May. Participants will learn about different careers and study pathways for young women to consider in construction and non-traditional trades.



 

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people2people Recruitment Releases Annual Employment and Salary Report for NSW

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people2people Recruitment Releases Annual Employment and Salary Report for NSW

 

Sydney, April 30, 2024 – people2people Recruitment, a premier recruitment agency in New South Wales, today unveiled critical insights from its latest Employment and Salary Report, shedding light on key employment trends and workforce sentiments affecting the region.

The comprehensive report highlights a troubling trend, with one in three NSW employees resigning due to inadequate career progression opportunities. Moreover, over half of the respondents feel their current salary does not reflect their actual performance or skills, a significant concern in today’s competitive job market.

As 2024 progresses, the findings suggest a shift in employee priorities, with 47% of workers planning to seek more flexible working conditions. This demand for flexibility is closely followed by 41% of employees who intend to negotiate for higher salaries and 33% looking for enhanced employment benefits.

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In a notable contrast, NSW employers are displaying optimism about their hiring capabilities for the year, with over 80% planning to recruit new staff either to fill existing positions or to support business growth. Bianca Luck, NSW Director at people2people Recruitment, commented on the current market conditions: “Despite decreasing business confidence and heightened cost pressures, there’s a strong need to address workforce inadequacies, as half of the NSW employees feel their teams are understaffed.”

The report underscores the necessity for employers to adapt to the changing dynamics of the job market. “To attract and retain top talent, employers must offer meaningful career pathways, fair compensation, and adaptable work arrangements,” Luck stated.

Additionally, the report delineates a disparity between employee desires and hiring managers’ perceptions:

  • Career advancement tops the list of retention strategies for 2024, slightly outpacing management support and trust, and closely followed by training and development opportunities.
  • While over 70% of employees view training and development as crucial for retention, only 40% of hiring managers recognize its significance.
  • The understanding of financial benefits is more aligned, with only a 1% difference between employee expectations and hiring managers’ perceptions.

Since 2022, there has been a marked increase in the importance placed on mental health, diversity equity and inclusion, work purpose, career opportunities, job security, and training and development among job seekers and employees.

As of February 2024, New South Wales reported 74,400 online job vacancies, a 3.7% unemployment rate, and a 4.6% decrease in annual job advertisements, reflecting the ongoing fluctuations in the job market.

About people2people: Founded in early 2005, people2people is an established Australasian recruitment company known for its professional and personalized recruitment services. With expertise spanning various sectors including accounting, finance, business support, executive roles, government, human resources, legal, marketing, digital, property, sales, supply chain, and technology, people2people focuses on tapping potential today to build careers and businesses for the future.

For more information on the report or to consult with a recruitment expert, visit here.

 

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SafeWork NSW Announces $1.2 Million Fine for Orica After Cobalt Dust Exposure

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SafeWork NSW Announces $1.2 Million Fine for Orica After Cobalt Dust Exposure

 

SafeWork NSW has today confirmed that Orica Australia Pty Ltd has been fined $1.2 million by the District Court of NSW following a significant breach of workplace safety laws. The penalty comes after the company admitted to exposing two of its workers to hazardous cobalt dust over several years, leading to serious health consequences including occupational asthma.

The prosecution, led by SafeWork NSW, stemmed from incidents occurring between 2014 and 2019 at Orica’s Kooragang site. Orica pleaded guilty to a Category 1 offence under section 19 of the Work Health and Safety Act 2011—the highest level of offence under NSW law, indicating reckless conduct concerning risk of death, serious injury, or illness.

At the centre of this case was the exposure to cobalt dust, a known respiratory sensitizing agent that can cause severe occupational illnesses. This exposure occurred in the Cobalt Catalyst Manufacturing Shed at Orica’s Kooragang Island facility, where the affected workers were employed. The court noted that the dust was visibly produced during various manufacturing stages, posing consistent health risks.

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Cobalt dust can lead to severe respiratory issues, including asthma, lung fibrosis, and damage, with potential for other critical effects such as cardiac issues and liver and kidney congestion. The court highlighted that Orica’s efforts to mitigate these risks were substantially insufficient and poorly executed.

Trent Curtin, Head of SafeWork NSW, commented on the court’s decision: “The court confirmed that the risk of exposure was inevitable, and Orica’s attempts to safeguard against this were grossly inadequate. This prosecution should serve as a resolute message to all industries: SafeWork NSW will not hesitate to enforce the full strength of the law to protect workers’ safety.”

For further details on health monitoring protocols related to cobalt dust, please refer to the SafeWork Australia guidance: Health Monitoring for Cobalt Dust.

 

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