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Month: December 2020

What’s the Difference Between Public Liability Insurance and General Liability Insurance?
What’s the Difference Between Public Liability Insurance and General Liability Insurance?

Posted on December 23, 2020 | by Alex | Posted in Uncategorized

When it comes to choosing liability insurance, business owners usually have two options to select from; public liability insurance and general liability insurance. Liability coverage is a special form of business insurance that’s intended to cover any legal responsibilities the policyholder may have during an incident or event.

Both types of liability insurance have their own advantages. But the question is, how do you choose the right one for your needs? In this article, we’ll be discussing the differences between public liability insurance and general liability insurance so that you can make an informed decision.

What is public liability insurance? (PLI)

Public liability insurance is a type of insurance that’s designed for businesses who interact with members of the general public. Think of it as the starting point of insurance coverage for businesses that are retail or public-access oriented. Basically, PLI protects the policyholder against claims of property damage or personal injury by a third as a result of their business operations.

For example, if a customer were to slip while inside your business premises or their property were damaged while you’re conducting business, they may take legal action against you for their loss. This is where public liability insurance comes in. Depending on the policy you choose, PLI can cover incidents that occur in your workplace and other locations as well.

Keep in mind that public liability insurance only covers claims made by third parties, meaning that claims made by your staff or investors are excluded. If you work with clients and customers in public spaces, it’s vital to protect your business against potential claims. Hence, it’s imperative that you should familiarise yourself with all the exclusions that are not covered by PLI policies to ensure you’re getting adequate coverage for your business.

If you want more comprehensive insurance coverage, then you will have to look into general liability insurance which we’ll go over down below.

What is general liability insurance?

General liability insurance provides business owners with coverage for property damage or personal injury suffered during the course of business operations. GLI also covers medical expenses and attorney fees that may arise during an incident. The advantage of GLI over PLI is the wider scope of incidents and events it covers, hence the name.

Acquiring a general liability insurance policy is perfect for large-scale businesses that need additional insurance coverage, including protection of its assets in case of a catastrophic incident whereas public liability only covers liabilities stemming from public claims.

Do keep in mind that general public insurance does not cover everything. For instance, professional liability and worker’s compensation aren’t covered with GLI, meaning you’ll need to acquire additional insurance to cover liabilities from employee injuries and negligence claims.

One limiting factor of GLI is the price. GLI is more expensive than PLI due to the more comprehensive coverage. This makes the extensive policies of general liability insurance more suited for larger businesses since most SMEs may find it quite out of their pocket.

Comparing PLI vs. GLI

Like with most types of insurance policies, there are strengths and weaknesses associated with PLI and GLI. PLI policies provide a minimum amount of liability coverage such as liabilities against public claims of accidents, negligence, and injury. Because of this, the PLI policies tend to be more on the economic side.

While that’s all well and good, a PLI may end up leaving coverage gaps in the event that an employee, vendor, or investor is involved as it does only protects against claims from the public. Any expenses exceeding the coverage in the policy are shouldered by the business owner.

In comparison to GLI which is more comprehensive in nature, you can feel more confident that your business is protected from a wide range of financial threats. While GLI policies may be out of reach for SMEs, they do provide a superior level of coverage that established businesses can take advantage of.

Ensuring the assets of your company are covered against liabilities stemming from third-party claims is a crucial part of your business. Considering that these claims can be very expensive, paying them from your own pocket can significantly affect your bottom line.

Learn more from expert professionals

Public liability insurance and general liability insurance are two of the most common types of insurance that can protect you from huge financial losses. In order to determine which insurance is right for you, you need to know the risks your company is exposed to and the differences between policies.

This is why you want to hear expert advice from professionals like Matrix Insurance to help you make an informed decision. Insurance for businesses can be quite complex and it can feel overwhelming at times. By working with Matrix Insurance, you can feel confident that your business has sufficient coverage without breaking the bank.

To learn more about PLI and GLI, feel free to contact us today. We look forward to hearing from you!

Must-Have Add-ons for Luxury Car Insurance
Must-Have Add-ons for Luxury Car Insurance

Posted on December 04, 2020 | by Alex | Posted in Insurance

If there’s one thing you need to purchase for your high-end vehicle, then it’s absolutely luxury car insurance. Luxury cars are very costly to maintain and one of the main issues with owning one is the expensive repairs. Even minor damages can set you back thousands of dollars which is why securing luxury car insurance should be one of your top priorities.

One thing to keep in mind when buying luxury car insurance is selecting the appropriate add-ons. Add-ons provide extra coverage for an additional premium, thus securing your vehicle from a wide range of possible scenarios and incidents.

Having a comprehensive cover with all the important features is most often recommended by experts. But don’t be tempted to splurge on all the heavily-promoted add-ons or else you’ll end up paying more for what you don’t need. With that in mind, here are the must-have add-ons that you should get for your luxury car insurance.

Engine protection cover

The engine protection cover is bought as an additional coverage along with the comprehensive car insurance policy. This provides extended coverage towards damages or losses to your luxury car. The add-on compensates you for the replacement of the vehicle’s engine and/or its parts. This includes lubricant oil leakage, damage to the pistons or gearbox, water ingress, and hydrostatic lock.

With a standard comprehensive policy, these parts are usually not covered and hence you’ll have to fork out money from your pocket if you don’t have engine protection cover. Generally, the cost of this add-on is around 2% of the luxury car’s current market value. The model of the vehicle also affects the add-on price as well.

By having your car’s engine under the additional coverage, you’ll be able to save a lot of money by not having to bear the engine repair bills with your own money.

Depreciation reimbursement

Car depreciation is inevitable. Over time, the parts and components wear out as you drive your luxury car. Owing to this, the value of the parts go down as well. This depreciation is directly linked to the vehicle’s age. Typically, the insurer calculates the value of your vehicle’s parts after factoring in the depreciation and from there, you get the settlement amount.

Depreciation reimbursement helps protect your luxury car against all physical damages without factoring in depreciation. Although standard car insurance covers you against damages or losses when you file for a claim settlement, a depreciation deduction is calculated before you receive the compensation.

With depreciation reimbursement, the entire claim amount is paid by the insurance company. While you will have to pay more for your premium, you do benefit from the additional coverage since it eliminates the possibility of any out-of-pocket expenses.

Roadside assistance

Luxury cars are complex vehicles and typically, roadside garages don’t come with the necessary experience or expertise to handle repairs. Servicing a high-performance car requires a certain skill set which is typically available only with company-authorised service centres. The last thing you want is to suffer a mechanical failure and you can’t get your luxury car repaired.

With roadside assistance, you can rest assured that in the event your vehicle breaks down, you can phone the insurance company and help will be on the way. Roadside assistance includes the following benefits like emergency towing, fuel delivery, tire changes, and more.

Considering that a luxury car is of immense value, you don’t want to entrust it to a private towing service which doesn’t provide the same level of care and assistance that an insurance company offers.

Consumables cover

Consumables are items that need to be replaced regularly due to wear and tear. There are many items in a car that fit this description and these are the engine oil, brake oil, lubricants, screws, nuts, and bolts.

In a standard car insurance policy, these small consumable expenses are usually not covered. This means you will have to shell out your own money to if you need to replace any of these parts. With a consumables cover, however, your insurer will make a payout for the value of the items you’ve consumed.

As the cost of consumables is much higher in luxury cars, having a consumables cover will help keep the costs down in maintaining your high-end vehicle.

No-claims bonus protection

In car insurance, a no-claims bonus (NCB), or no-claims discount pertains to the number of years that you haven’t claimed on your car insurance policy. The amount of the bonus varies depending on the insurer, but an NCB of more than 3-5 years is likely to give you a huge discount on your premium.

If you make a claim on your policy where your insurer pays out, expect to lose some (if not all) of your no-claims bonus. To avoid this, you’ll need no-claims bonus protection. What this does allow you to have a certain number of “at fault” accidents without affecting the bonus you’ve accumulated. So if you were to get caught in an accident, the NCB remains intact even if your insurer can’t claim their costs back


Posted on December 04, 2020 | by Alex | Posted in Insurance

Are you underinsuring your business to save money?  

It’s not worth the risk! 

When times are tough, it’s common look at where we can cut costs in our lives. 

Unfortunately for some people with small businesses, one of the first areas they will  look at for cost-cutting will be their insurance. 

Do I really need insurance? Do I need so much insurance? How likely is it that  something bad will happen and I will need to make a claim? 

These are some rationalisations that business owners may ask themselves when  looking at ways of saving money during tough times. But while reducing your  insurance policies may save you money in the short term, it may cost you everything  in the long run. 

Being underinsured leaves businesses vulnerable. Nobody knows what may happen  tomorrow, next week or next month; and if you don’t have the right insurance cover,  it can be a disaster if something terrible happens to your business. 

Are you sufficiently covered? 

One in 10 Australian businesses have no insurance cover, and many more have  insufficient cover, meaning many businesses are being left vulnerable. If you are  questioning whether you are paying for cover that you could go without, ask  yourself if you are covered in the following circumstances: 

• Natural disaster: Anyone in Australia knows just how easy a natural disaster can  happen, and the dire impacts it can have on businesses. Catastrophic bushfires  followed by a global pandemic should be enough proof that some things are  out of our control, and that it’s a good idea to be covered against them. 

• Legal action: If a customer decides to take legal action against you, are you  sufficiently covered? If a customer, staff member or member of the public feels  they have a reasonable claim, and if your public liability insurance and public  indemnity insurance isn’t up to date, you could lose everything.  

• Damage to premises or stock: A simple break in at your premises could turn out  to be costly without sufficient insurance. A good business insurance package  includes business interruption cover, which is important during down-time while  your business closes to make repairs. Business insurance will cover you for  products that are damaged or stolen. 

• Staffing: If you have staff, you need adequate insurance for them also, including  Workers’ Compensation Insurance.

Time for an insurance check! 

If you think your business may be uninsured, the best thing to do is speak to a  professional broker. Likewise, if your business is going through a tough time and you  do need to save money, speak to your broker before you cancel any policies. They  can advise on ways you can save money while still having adequate cover, and will  look for the best insurance policy to suit your budget. 

Don’t risk it any longer, speak to Matrix Insurance today, the leading insurance broker in Perth.

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