If your business or organisation works with children or even operates in spaces where children may be present, there are new legal obligations in Queensland you should be aware of. 

Queensland’s Child Safe Organisations Act 2024 introduced a mandatory framework to help protect children from harm. It is overseen by the Queensland Family and Child Commission (QFCC) and currently covers around 40,000 organisations across the state. 

As your insurance and risk adviser, we are not here to interpret the law for you, that is best left to the QFCC and your legal advisers. What we can do is help you understand the broader picture, point you toward the right resources, and make sure your insurance is keeping pace with your obligations. 

Who Does This Apply To? 

A common question we hear is: “Does this apply to us? Children aren’t really our main focus.” 

The short answer is it might. The laws are broader than many organisations expect. You should check whether the Child Safe Standards apply to your organisation if you:

• Provide services directly to children or young people
• Run spaces or facilities that children use
• Work at sites where children may be present, even if only sometimes
• Operate online platforms or apps used by children
• Collect, store or handle information or images of children
• Engage subcontractors, volunteers or labour hire workers in child-accessible environments

This covers a wide range of businesses; tutoring centres, gyms, play centres, sports clubs, religious organisations, allied health providers, community groups, and more.

If children come through your doors or interact with your services in any way, it is worth checking your obligations.

The QFCC has a straightforward guide to help you work out whether the Standards apply to you: qfcc.qld.gov.au/childsafe

What Has Changed and When?

The new Standards have been rolling out in stages since October 2025.

However, with careful planning and risk mitigation, you can keep your business moving forward and reduce the risk of a claim.

So, here are six things to check to ensure your business is summer-ready:

1. Building Maintenance

Check your maintenance programs are up to date and that any outstanding jobs are complete. Some of the jobs may include:

• Roofing: replace broken tiles and fix holes to prevent leaks.
• Gutters: remove debris to reduce overflow and fire risk.
• Trees: prune back trees to minimise storm damage.
• Shade Cover: ensure any shade cover is robust enough to withstand wild weather.
• Stock: protect any stock stored outside or in outbuildings from the weather.

2. Power Outage Plans

A power outage or surge is possible, whether it’s hot weather or a storm. Therefore, it’s prudent to check that:

• Equipment is working and protected.
• Equipment can be quickly relocated or sourced if required.
• Generators or other backup power sources are working and ready to run when needed.

3. Business Continuity Plans

It’s advisable to have a plan to tackle operational issues caused by severe weather events. Be it a flood, fire or storm damage, staff, customers, and suppliers must be kept safe and informed.

Check that essential data and documentation are backed-up and always easily accessible should the premises be impacted by a fire, flood or other event that disrupts your usual operations.

4. Staff Training

Now is an excellent time to explain the continuity plans to your team so they know what to do should the business be impacted by an extreme weather event or other business interruption event.

Whether it’s how to direct customers, remain safe or details of interim working arrangements, your team must know what to do in a crisis.

5. Check Insurance Cover

Check-in with your insurance adviser and review your business interruption cover. After all, it can be a lifeline for your business. Business Interruption cover can provide financial support to cover the loss of revenue and help with the expenses needed to get you back on your feet. Whether you have made no improvements to your premises or undertaken renovations, keeping your adviser and insurer up to date is essential.

6. Seek Professional Risk & Insurance Advice

Your insurance adviser can advise on continuity plans and risk mitigation, and ensure your business remains adequately covered during business interruptions. If you need help, contact Clear Insurance on 1300 721 132 or email info@clearinsurance.com.au.

Considerations for Equipment Breakdown

You may find the following quick reference guide useful. However, before using the guide, please note the following: 

1. Always check the small print

Refer to the terms and conditions, inclusions, exclusions and sums insured limits set out in the manufacturer’s warranty, maintenance contracts and insurance product disclosure documents provided to you at the time of purchase. They are a helpful guide as to what is and is not covered or included as part of your warranty, insurance contract or service agreement.  

2. Keep your insurance adviser informed 

Inform your insurance adviser of equipment purchases to ensure you have the cover you need. It may not be covered by your existing policy.  Your insurance adviser can help ensure your cover remains adequate for your specific business needs. 

A Quick Reference Guide for Machinery Breakdown 

As a business owner, your enterprise is one of your most valuable assets. Therefore, it makes sense to take the necessary steps to protect it.

In Australia, inadequate cash flow is the primary reason small businesses fail. [1]

Which highlights the importance of having a robust risk transfer strategy in place, which may include transferring risks to insurance to safeguard against financial losses. 

“1 in 10 Australian small businesses with insurance don’t have enough cover to protect themselves.”

The importance of a comprehensive risk transfer strategy

Insurance is a risk transfer tool that businesses can use to safeguard against financial losses when the unexpected occurs, such as loss of income due to equipment breakdown or storm damage. A well-designed risk transfer and insurance program can help safeguard your business against unexpected financial losses and build resilience for your business during challenging times.

Did you know that ‘one in ten Australian businesses with insurance don’t have enough coverage to protect the business from the losses associated with business disruption, legal liabilities, or loss or damage to assets [2]? It highlights the potential risks associated with underinsurance.

Understanding underinsurance: Is it a risk you can afford?

Underinsurance refers to having inadequate insurance cover for your business, increasing the risk of severe financial strain if something goes wrong. The temptation of low premiums can lead business owners to overlook adequate insurance protection.

• Outdated Coverage: If you have not updated your insurance to reflect recent or future business growth, you may make your business vulnerable.
• Inaccurate Replacement Valuations: Underestimating the repair or replacement of equipment or other business assets can lead to significant out-of-pocket expenses following a storm, fire or other claimable event.
• Inadequate Sums Insured: If financial limits (sums insured) are inadequate, it may expose the business to financial losses following management or legal liability claims, or business interruption events.

The impact of proper insurance cover

Taking steps to address cyber risk is essential for any business. According to the Australian Signals Directorate (ASD) Australian Cyber Security Centre (ACSC), there were over 84,700 cybercrime reports in the 2024-2025 financial year. That’s one report every 6 minutes!

The average cost per cybercrime varies by business size:

• $56,600 for small businesses (up 14%)
• $97,200 for medium businesses (up 55%), and
• $202,700 for large businesses (up 219%)

The average financial loss for each confirmed cyber incident is $80,850. That’s costly for businesses! It’s clear that taking steps to protect your business from the potential claims and financial losses associated with cybercrime makes financial sense.

Most Common Cyber Risks to Watch Out For

According to the ACSC data, phishing is a common method used to compromise emails and commit fraud against businesses. They are usually untargeted, mass emails that might ask for sensitive information or encourage staff to click on links to fake websites or open seemingly legitimate attachments. Phishing has now extended to text messages and QR Codes.

Other common cyber threats include:

• Denial of service
• Email compromise
• Business email compromise fraud

Insurers & Cyber Risk

As cyberattacks increase, insurance underwriters are closely examining your data security controls when assessing your risks for cyber insurance.

At a minimum, they expect to see evidence of policies and procedures designed to prevent a cyber breach. These may include:

• Multifactor authentication for web-based programs, like Office 365, Xero or other online accounts.
• Regular Data Backup practices
• Employee training on Cyber-attack prevention
• Regular software security updates
• Plus, a host of other preventative measures such as response plans, encryption, segregation of networks and more

Without adequate controls, an insurer may refuse cover, charge higher premiums, or restrict your cover.

What Can You Do to Protect Your Business from Cyber Risk?

According to the ACSC, to mitigate cyber security threats, businesses and organisations should consider:

• Cyber Response Plans – based on ‘when’ not ‘if’ a data breach occurs.
• Use secure-by-design and secure-by-default products and services
• Implement best practice – ASD’s Essential Eight
• Enable multi-factor authentication (MFA), when available
• Use long, unique passphrases for every online account
• Enable automatic updates for all software and do not ignore update prompts
• Backup important files and devices regularly
• Stay alert and train staff to identify phishing messages and scams
• Stay up to date with cyber security news no matter your business size

What Can You Do to Transfer Cyber Risk to Insurance?

While there is no standard cyber policy, a comprehensive cyber insurance policy can provide extensive coverage. The types of risk to cover may include:

– Your liability

• Legal fees, defence costs
• Fines related to a data breach
• Contractual and non-compliance expenses due to a data breach
• Financial settlements for losses incurred by third parties

– Your Response Costs

• Engaging specialist legal, PR, Investigative and negotiation services
• Issuing breach notifications to affected individuals, suppliers or other third parties
• Monitoring the data breach

– Your Operational Costs

• Network repairs
• Data recovery costs
• Loss of income due to business interruption

Regulators are increasingly likely to take action against organisations that fail to implement adequate cyber protections, whether you use a third-party service provider or manage your networks in-house.

Seek Professional Risk & Insurance Advice

Your insurance adviser can guide you through the most appropriate options for transferring cyber risk to insurance. They can also connect you with cyber insurers that offer cyber training to support your business and educate staff.

For advice on transferring cyber risk to insurance, you can contact Clear Insurance on 1300 721 132 or email info@clearinsurance.com.au. You can also ask about our no-obligation risk and insurance review for complete peace of mind.

Why is it important to understand your financial risks?

A good understanding of your operational and governance risks enables you to make informed decisions regarding whether to transfer risk to insurance to safeguard your organisation from financial losses. Potential risks that can impact your insurance cover may include new business activities, contracts, property damage, liability claims, or operational disruptions. 

What protective role can insurance play for businesses?  

Insurance acts as a risk transfer mechanism, providing financial protection against unforeseen events. However, simply having insurance is not enough; it must be specific to your needs, and you must consider insurance as one element of your overall approach to risk management and mitigation.

Risk management specialists can advise on the most appropriate risk mitigation strategies for your business operations, while insurance advisers can explain the options available for risk transfer to insurance. With clarity on your risk transfer and insurance needs, you can make informed decisions. 

How can you evaluate the risks in your business for insurance?  

It’s prudent to consider the following:  

• What are the challenges and opportunities in your business?
• Are there any gaps or exclusions in your insurance program that could leave your business vulnerable?   
• Are the insurance policy limits sufficient? If not, does this place pressure on your cash flow and reserves?
• Are you confident that your insurers comprehend the unique needs of your business?   

Is Underinsurance an Issue?   

Underinsurance is prevalent in Australia. Underinsurance occurs when businesses set sums insured that are not adequate to cover potential claims. As insurance advisers we encourage you to understand your insurance program and the sums insured thoroughly. If a claim exceeds the insurance limit, your business may face significant out-of-pocket expenses and may expose Directors to personal liability.   

For property owners, obtaining independent insurance replacement valuations from qualified valuers can clarify replacement values, reinstatement costs, and time frames, thereby determining the appropriate sums insured.  

What can you do if you have concerns about your insurance program? 

If you would like advice on transferring risk to insurance, it’s advisable to reach out to your insurance adviser without delay. For additional support, Clear Insurance provides a no-obligation risk and insurance review for peace of mind, delivering a detailed gap analysis report that provides the insights you need to make informed decisions regarding your insurance program.

To schedule a consultation, contact Lisa Carter at lisa.carter@clearinsurance.com.au or call 1300 721 132.   

For businesses lodging claims, these trends and challenges can impact the time it takes to recover from a loss event.  

Factors affecting claim times 

The issues affecting claim times and business recovery are many and complex. However, the primary factors the insurance industry expect to persist include: 

1. Increasing Number of Claims Due to Weather Events 

It’s no surprise that Australia and the Asia Pacific are considered a disaster-prone region.  We’re experiencing tropical storms, cyclones, flooding and bushfires at an increasing intensity, driving up the number of claims.  

As our populations grow, so does the need for commercial and residential buildings, which in turn increases the demand for insurance. So, it’s no wonder the number of claims is on the rise. Add in global inflation, supply chain issues and loss of revenue during a loss event, and you have the perfect storm for increased costs.  

Asia Pacific is home to significant banking and financial institutions, high-tech manufacturers and a booming hospitality industry. When disasters strike high concentrations of a specific sector, claim values tend to rise for that sector. 

When multiple weather events hit the same area in a short period, it’s challenging for insurance loss adjusters to define damage on unresolved claims and more recent damage clearly.  

It highlights the need for businesses to keep accurate records and capture photos or video of the damage to expedite claims.  

2. The Rise of Electric Vehicles 

The increase in electric vehicles, scooters and bikes is leading to widespread use of substandard charging systems. Lithium-ion batteries can spark fires that are extremely difficult to extinguish. These fires are becoming more common. They are larger and more costly to restore, which in turn affects business recovery times.  

3. Sustainable Solutions & Carbon Reduction 

The demand and regulatory requirements for carbon reduction targets are growing.  

It can become problematic when an insured business wants to rebuild following a claim event. That’s because new sustainability codes for the building may apply that were not previously required or applicable due to the age of the original building.  

Additionally, construction projects can be subject to supply chain issues, including shortages of specific materials. Such shortages can increase the time required for business recovery.  

Insurers are exploring ways to balance the cost of sustainable construction within their policies, so it’s worthwhile discussing this with your adviser or seeking independent building replacement valuations to ensure your policy includes adequate sums insured limits.

4. Cybercrime 

Cybercrime is a growing and ever-evolving threat, particularly with the increasing use of cloud-based storage for sensitive and personally identifiable information. 

Cyberattacks are becoming increasingly sophisticated, tricking even the most savvy workers into clicking on malicious links. Tricks may include impersonating senior company executives or creating invoices that appear legitimate.  

Businesses can take steps to mitigate the risk, such as implementing cybersecurity systems, providing cyber training, and purchasing insurance to help cover costs associated with investigations, legal action, or financial losses. 

5. Business Interruption 

Businesses must have comprehensive plans in place to address emergencies, such as a cyberattack or a weather event, that may disrupt normal business operations. This preparedness can provide a sense of security and confidence in the face of potential disruptions.  

Testing plans and ensuring team members know their roles in the event of an emergency is an essential part of the business recovery process.   

6. Business Recovery 

It’s critical for businesses to actively consider risk mitigation strategies and conduct regular reviews of their insurance programs.  

These measures can greatly influence the speed and success of recovery efforts. For example: 

• Risk mitigation strategies, such as regular maintenance programs or security systems, can help minimise the effect of fire, storms or vandalism and bolster recovery efforts
• A regular review of your insurance program can ensure your business maintains adequate cover in the event of a claim

Next steps to consider

There are plenty of steps you can take to help protect your business. We recommend: 

• Preparation & Training – Update your business continuity plans and train staff on your emergency recovery plans and procedures
• Risk Awareness – Understand the risks to the business and the level of risk the business can financially support
• Risk Mitigation – Mitigate risks where possible
• Independent Valuations – Consider using independent insurance replacement valuations for accurate sums insured. It can provide a sense of reassurance and confidence in the adequacy of your insurance coverage
• Seek Expert Advice – Seek advice from your insurance adviser, who can review your business risks and explain how to transfer risks that you cannot keep or mitigate to insurance that fits your business needs.

If you would like to talk to someone about your insurance program, contact Clear Insurance. Our no-obligation risk and insurance review provides a detailed gap analysis report designed to help you make informed decisions about risk and insurance program. 

Here are our top seven reasons to call your risk & insurance adviser:

1. Major Business Changes

Whether recruiting, building new premises, planning new product lines, adding more revenue streams, or making ownership changes, keep your insurance adviser in the loop.

Why? You may overlook the insurance implications or risks that expose your business to underinsurance, higher premiums or, even worse, no cover!

The earlier you chat with your adviser, the better. It’ll help you decide whether to transfer the new risks to insurance, implement risk mitigation strategies or update your insurance program.

2. Budget Setting

When setting annual budgets for the business, consider how your plans may affect your insurance premiums.

Calling your insurance adviser will inform you of what’s happening in the insurance market. They can explain the impact to existing insurance premiums and the steps you can take to prepare.

Additionally, your adviser can ensure you allocate an adequate budget for any insurance adjustments you may need to protect new assets and business changes.

3. Entering New Business Contracts

Before you sign on the dotted line, talk to your insurance adviser.

Why? The contract may include clauses that result in you:

• Breaching the terms and conditions of your existing insurance policies
• Restricting the level or type of insurance available due to your business set-up, financial position or operations

Your adviser can help ensure that the contract’s insurance requirements are appropriate for all parties.

In the current economic climate, there’s a tendency to shift risk from the core business to contractors. Therefore, chatting with your insurance adviser can provide peace of mind before you sign.

4. Purchasing Assets

Call your insurance adviser before buying equipment, vehicles, or other assets.

Why? Seeking insurance advice after purchasing assets can expose your business to unwanted financial risk, not just replacement costs, which could affect your cash flow.

For example, say you buy new machinery overseas, which breaks down, and replacement parts take six months to arrive. Due to the machinery being out of action, the company may lose vital income, which the existing insurance may not cover.

5. Cash Flow

Cutting your insurance to save dollars may be tempting when cash flow is tight. Instead, you should contact your insurance adviser to discuss your options.

For example, say you need to downsize or make changes in hard times. In that case, there may be savings you can make by reviewing your insurance cover.

Deciding to cut insurance on a whim can expose your business to further financial risk or business closure. Therefore, chat with your adviser about your options to help you make an informed decision.

For example, your adviser may help review your insurance program by:

• Determining the financial risk(s) the business cannot afford to absorb
• Presenting alternative excess options
• Exploring flexible payment options

For example, your business may have adequate financial resources to pay for broken laptops. Therefore, you may forgo the property damage cover for laptops. However, the company may need more financial resources to pay for the costs incurred to defend a claim made against the company’s Directors & Officers or cover financial losses to your business, customers or third parties. Therefore, your adviser may recommend maintaining your management liability and cyber insurance policies.

6. Reporting Incidents & Potential Claims

When incidents relate to your business, customers, staff, property or other potential claim events, promptly informing your insurance adviser is vital.

Why? It protects your business should a claim arise. That’s because your adviser can explain the insurance implications, advise on what to prepare and inform your insurer.

Some insurance policies require you to report incidents immediately. Otherwise, insurers may not pay out at claim time.

For example:

Situation

A not-for-profit terminates an employment contract due to ongoing behavioural issues. The organisation reports the dismissal to their insurance adviser as required under their Management Liability policy. In the meantime, the employee lodges an unfair dismissal claim with Fair Work.

Outcome:

By reporting the incident to the adviser, the adviser will notify the insurer and work with the insured organisation to guide them through the claims process. Should Fair Work pursue the claim, the organisation’s policy responds per the insurer’s terms and conditions, such as covering legal costs and compensation payments for a wrongful act where the organisation is found negligent.

If the organisation fails to inform their adviser and the insurer is not notified of the circumstances that may give rise to a claim within the required time frame or current policy period, the organisation may breach the policy terms and conditions. Therefore, the policy may not respond, resulting in no cover.

Calling your insurance adviser minimises the risk of breaching the terms of your insurance policy.

7. Sharing Your News

Insurance is a relationship business, and we love to hear your news. Whether it’s achieving major milestones or business struggles, we’re here to listen and help.

We work with many businesses and assist with all manner of insurance issues. As such, we may have a solution or business connection that helps to change everything.

Are you looking for a professional risk & insurance adviser?

Clear Insurance’s experienced team are here to help safeguard your business. Take advantage of our Risk and Insurance Review which provides a tailored assessment of your current and emerging business risks. Our advisers guide you through the available risk management strategies and how to use insurance as an effective risk transfer tool. Upon completion, you receive a detailed gap analysis report that you can use as a catalyst for making informed changes to your existing insurance program.

We always welcome your call. Contact the Clear Insurance team today.

A quick recap on Professional Indemnity Insurance

Professional indemnity insurance (PI Insurance) is most common in businesses that offer advice and services for a fee. That’s because their advice can significantly influence people’s decisions and actions.

For example, a client may use your services and suffer a financial loss as a result of your advice. They may take legal action against you. Your PI insurance policy can assist with the defence costs and any compensation you must pay. 

How to Avoid Underinsurance for Professional Services

What is the Average Provision?

The average provision is the percentage of costs the insurer will pay towards your legal defence and settlement costs. Your sums insured amount dictates this percentage, therefore it’s critical to set realistic dollar limits.

While you may save on premium costs with lower sums insured, you may be significantly out of pocket later. That’s underinsurance. Setting the optimal level of cover helps.

When does Average Provision apply?

It applies to Professional Indemnity Insurance policies or PI Insurance policies that contain a defence cost exclusive indemnity limit. That means the policy includes provision for the insurer to cover any reasonable costs. Costs such as defending, investigating, responding to, or settling a claim including the legal costs.

Will the Average Provision apply when I make a claim?

It applies when the compensation payment you must make to resolve a claim exceeds the sums insured limits in your policy. The Average Provision calculates the percentage of your costs that the insurer will cover. At this point, the dollar limit (sums insured) amount is vital.

For example:

Say you have a PI Insurance policy with a defence costs exclusive indemnity limit. You decide to set the limit at $1m with an Average Provision clause.

A third party takes legal action against you. So, you make a claim under your PI insurance policy. The legal action settles on a $2m compensation payment to the third party.

As your policy limit is $1m, it only covers 50% of the amount owed to the third party.

Therefore, the Average Provision states that your insurer will only cover 50% of the costs.

That means the insurer pays 50% of the compensation amount. However, it also means the insurer pays 50% of the costs associated with defending the claim.

The table below shows the breakdown.

A recap on PI Insurance limits, inclusions and exclusions

Professional indemnity claims can be expensive. Therefore, adequate insurance coverage helps cover the costs of claims. Your policy may help cover the cost of legal advice, investigations, public relations advice and compensation payments.

Typical exclusions from a PI policy may include intentional damage, bankruptcy, bodily injury or property damage.

Your PI insurance may include an Average Provision clause which dictates how much insurers pay. We’ll go into this in more detail now.

Ask your insurance broker to explain the inclusions, exclusions and limits within your PI insurance policy.

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