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Personal vs. Commercial motor Insurance: What’s the Difference?
Personal vs. Commercial motor Insurance: What’s the Difference?

Posted on January 22, 2020 | by | Posted in Uncategorized

If you own a business within the motor trade industry, it can be difficult to differentiate what’s considered a personal vehicle versus a commercial vehicle. Often times, business owners and employees use their own vehicles to transport customers, deliver goods, and move equipment. The question is, should these multipurpose vehicles be covered by personal motor insurance? Or should they be covered by commercial motor insurance?
To find out the answer, we’ll take a closer look at these two types of motor trade insurance in Perth and help you understand the difference between them.

What is personal motor insurance?

As the name implies, personal motor insurance is only meant to cover accidents that occur when using your vehicle for personal reasons. Some examples include going to and from work, doing travel unrelated to your job, and even just going to the grocery store. In general, the policies insure the vehicle owner as well as their family members.

For sole proprietors, the liability coverage from a personal motor insurance is usually more than enough to protect you from financial losses. If you occasionally use your vehicle for business-related purposes, the insurer can customise your policy to include business uses. Just make sure to ask the insurer to confirm if you can have this type of flexibility for your personal motor insurance.

This type of motor insurance (which can be modified to a certain extent) is usually less expensive than a commercial motor insurance and is only recommended for people who use their vehicles for ride-sharing services or seasonal/part-time work.

What is commercial motor insurance?

Commercial motor insurance is meant to cover accidents that occur when you (or your employee) are using a vehicle for business-related purposes. This includes transporting clients, goods, making deliveries, and more. Typically, a commercial motor insurance insures all of the employees in your business along with additional insured parties, meaning that every employee with a valid driver’s license can operate a business vehicle.

If you or your employees use a vehicle regularly to perform these tasks, then commercial motor insurance is probably the best insurance for you.

  • Drive clients as part of a ride-sharing service (Uber)
  • Deliver goods to clients
  • Perform business-related services that require the use of a vehicle
  • Haul heavy loads (such as work equipment and machinery)
  • Towing a trailer used for your business

One thing you should be aware of is the commercial insurance requirements when operating heavy-duty vehicles. Since heavy-duty vehicles are larger, they can potentially cause more damage during an accident. Due to the higher liability risks, commercial vehicles that weigh more than five tons (or hauls one-ton loads) need special insurance coverage. Some examples of heavy-duty vehicles include semi-trucks, cement mixers, tow trucks, and mini-buses.

If you operate a business that uses heavy-duty vehicles on a regular basis, you should definitely opt for commercial motor insurance. In most cases, the liability limit will be high enough to cover for the extreme damages that heavy-duty vehicles can cause.

So, what’s the difference between personal and commercial motor insurance?

While both policies pay for repairs, medical bills, and such, the main difference between personal motor insurance and commercial motor insurance is the coverage amount. A business will always have more liability risks compared to an individual, meaning their liability limit will be higher as well. Commercial motor insurance can cover higher claims, a wide variety of vehicle types, and in some cases, deal with more complicated legal issues that personal motor insurance can’t.

Here are a few ways commercial motor insurance can protect your business:

  • Higher liability limits (up to $2 million)
  • Hired vehicle coverage
  • Non-owned vehicle coverage
  • Equipment used with and/or attached to the vehicle
  • Loading and unloading exposure
  • Property and liability trailer exposure

How much does commercial motor insurance cost?

There are a number of factors that determine the cost of commercial motor insurance. These factors are:

  • Vehicle price – Vehicles with higher MSRP usually cost more to insure than lower-priced ones.
  • Vehicle type – Heavy duty vehicles can add up to the cost of commercial motor insurance significantly compared to smaller, lighter vehicles.
  • Number of vehicles to ensure – The more vehicles you need to insure, the higher the price of the insurance will be.
  • Vehicle purpose – If the vehicles are constantly in use/transit, the cost for commercial motor insurance will go up. 
  • Coverage amount – This means the amount of coverage your business needs to fully insure all of your operating vehicles.
  • Risks – The insurance company will do a thorough background check on all the drivers. If they have a bad driving record, the cost of the insurance will go up.

As you can see, commercial motor insurance is far more complex than personal motor insurance. Again, the main reason for this is because businesses have much higher liability risks as opposed to a single person driving their own vehicle. Use this article to make an informed decision about the right motor insurance for your needs or alternatively speak with Matrix Insurance today who are a leading motor insurance company helping people throughout all of Australia.

Talking Insurance: Is your business suitably covered for the Festive season?
Talking Insurance: Is your business suitably covered for the Festive season?

Posted on December 23, 2019 | by | Posted in Uncategorized

For some businesses, the Festive season is their busiest time of year. For others, it’s welcome downtime. Whatever your situation is, it’s important to consider this question: Am I suitably insured for the Festive Season?

Business Insurance

If your business is gearing up ready for the busiest time of the year, you’ll want to be reassured that your Business Insurance covers all your needs.

If your business relies on physical stock, this time of year will no doubt see you ordering more stock to supply demand. It’s a good idea to make sure that you have adequate Business Insurance cover while you have more stock on hand. 

Having enough cash on hand is another issue to consider during these busy weeks. If you are dealing with high volumes of cash; you may need to consider insuring the cash also. Money cover is part of a Business Insurance pack and helps protect money belonging to your business that may be lost, stolen or damaged whilst in your custody, on your business premises, or in transit to or from your premises. 

Depending on the type of business you operate, you may require additional staff to assist with the increase in business. Update your Business Insurance to cover the needs of extra staff during the holiday period. 

Public Liability Insurance

During the summer months and the Festive season, many businesses see an increase of people visiting their premises.

In this instance, Public Liability Insurance should be at the forefront of your mind because the last thing you want is to end the year with an expensive liability claim. Public Liability Insurance is designed to protect your business from any risks which may arise from claims by a third party for accidental injury, loss or damage to their property. 

However, even for businesses who may not be frequented by the public, another consideration this time of year is being suitably insured for the office Christmas party!

The work Christmas party is a great chance for co-workers to come together and celebrate all of the hard work and achievements made over the past 12 months. But before you invite any external guests, make sure you have an active Public Liability Insurance in place. In fact even if you are hosting your staff Christmas party at an external location, you should consider whether the venue has Public Liability cover in place to cover your employees and invited guests; or if you are required to have your own policy. 

Building and Contents Insurance

It is inevitable that summer time brings potential hazards from bushfires and summer storms. 

If your business is located in a fire-prone area, it is important to make sure you are covered for a fire damage, especially if you own your business premises. This is where your Building and Contents Insurance comes into play. Double check your insurance policy wording to make sure you are covered for bushfires as some waiting periods and conditions may apply. 

In addition, take into consideration the cover for your business during downtime and while you are not there. Unfortunately break-ins do occur and thieves certainly will take advantage of the Festive season. For peace of mind, check your policies for theft are up to date.

Personal Insurance

If you are winding up your business for the year and ready to take a well-earned break, now could be the ideal time to take a personal insurance assessment. We all have personal insurances – car, home and contents, landlord insurance, caravan or motorhome, boat insurance etc. If it’s been a while since you’ve compared policies, consider taking the time this summer break to do some research. 

The team at Matrix Insurance are more than happy to discuss your insurance needs – both business and personal – and tailor packages to suit you. Get in touch with one of the leading insurance brokers in Perth to discuss your needs today!

Everything You Need to Know About Motor Trade Insurance
Everything You Need to Know About Motor Trade Insurance

Posted on December 16, 2019 | by | Posted in Uncategorized

If you own a business within the motor trade industry, one of the first things you need to know about is motor trade insurance. Motor trade insurance is a type of policy that covers people who make a living through buying, selling, or repairing cars, motorbikes, and other vehicles from financial loss. Having a basic level of motor trade insurance is a legal requirement in most countries and if your business is your main source of income, then you have to have a good understanding of how it works.

This article will cover everything you need to know about motor trade insurance and why you should consider applying for one.

Types of motor trade insurance policies

There are three different types of motor trade insurance policies that you should know about. Each policy covers different areas and we’ll discuss each one below in complete detail.

1. Road Risk Only Motor Trade Insurance

This type of insurance policy is categorised into three different levels of cover which are:

I. Third Party Only

Third Party Only (TPO) is the most basic level of coverage and it’s intended to cover any third parties that are involved in an accident deemed to be your fault. For example, if you were involved in a crash and you damaged someone’s property, the insurance policy will only cover the damages the property owner suffered. This means that you will shoulder any repair/replacement costs for your vehicle and/or property.

Every motor trader is required by law to have TPO coverage considering it’s the minimum level of cover available to most motor traders.

II.Third Party Fire & Theft

This level of coverage works similarly to TPO, but with the added benefit of covering damages caused by fire, theft, and other accidents, provided that the damage wasn’t part of an accident involving you.

III. Comprehensive Policy

A comprehensive policy ensures that both you and your business are covered from any damage suffered from your vehicle(s), regardless of whose fault it is. This level of coverage also covers the motor trader from the aforementioned TPO, fire, and theft damages.

2. Liability Motor Trade Insurance

This type of insurance policy covers you from damages sustained by a third party due to your negligence or your actual business itself. This protects you from any legal fees should the third party involved decides to take you to court or expenses for hospital treatment.

For example, a customer came by and dropped off his vehicle for repairs. While stepping out of the vehicle, he stepped on a spill of engine oil, causing him to slip and suffer a head injury. There’s no doubt the customer will sue for medical treatment and other potential expenses. With this policy in place, you won’t have to cough up the money out of your own pocket to cover the expenses.

The law requires motor traders to apply for a liability motor trade insurance if their business employs one or more people. 

3. Combined Motor Trade Insurance

This type of insurance policy is the most extensive out of all the three policies and is aimed at large-scale motor trade businesses. If your business consists of a huge garage, a car showroom, and a forecourt, then you should definitely apply for a combined motor trade insurance. In general, this insurance policy covers you from the following (do note that each motor trade policy can differ slightly):

  • Damages to machines and fittings
  • Damages to stock vehicles and/or customer vehicles
  • Theft of stock, money, equipment, and personal belongings of customers and employees
  • Business interruptions
  • Employers liability, service and sales indemnity, liability and public liability

While a combined motor trade insurance is extremely comprehensive, it does give the motor trader complete peace of mind knowing that they are fully covered from all kinds of eventualities.

Questions to ask about your motor trade insurance

It can be quite confusing to choose which motor trade insurance best fits your business. These three questions can help you make an informed decision and narrow down your choices accordingly.

1. Where do I operate?

Keep in mind that a Road Risks Only Motor Trade policy only covers damages sustained by third parties while you’re on the road. This means that if you’re running a car showroom or forecourt, you should apply for a Combined Motor Trade Insurance that covers vehicles that have sustained damage while kept at a business address.

2. What type of vehicles are you working with?

Some motor trade insurance policies have restrictions on the type of vehicle covered. If you’re working on performance cars, exotic vehicles, motorbikes, or agricultural vehicles, make sure these vehicles are covered on the insurance policy before applying.

3. How much cover do you need?

Most motor trade policies have a so-called indemnity level. This is the maximum amount an insurer would pay when you file a claim. If your claim’s value is higher than the indemnity level, you may have to pay for the remaining amount with your own money. Refer to your broker and have them assess the types of risks your business is prone to and check if the indemnity level can cover for all of these risks.

As a business owner in the motor trade industry, it is a legal requirement for you to have a motor trade insurance policy in place. Get in touch with Matrix Insurance today to find out more.

New Hotel & Pub Website is launched!
New Hotel & Pub Website is launched!

Posted on March 08, 2019 | by Matrix Insurance Group | Posted in Uncategorized

We are excited to launch a new hotel and pub website. This will give further reach to all hotels and pubs across Australia who are looking to find better options for their hotel and pub insurance. We also aim to add a weather alert notification system in the near future, which further adds to our proactive risk management approach and will be in a position to alert clients across Australia when significant weather perils are known.

check it out here; &

Cyber Liability – Are you Protected?
Cyber Liability – Are you Protected?

Posted on March 08, 2019 | by Matrix Insurance Group | Posted in Uncategorized

cyber lock on blue for cyber liability insurance banner

No company is immune from the risks of cyber crime. In fact, this enterprise-wide issue affects small and large businesses alike.

The information age allows us to collect, store, and extract data around the globe 24/7, leaving companies more vulnerable than ever to cyber security threats.

When sensitive information gets in the wrong hands, it can result in significant out-of-pocket and reputational costs that can devastate the bottom line.

These events are a lot more common than you think.

Is your company prepared for:

  • Identity theft resulting from lost or stolen financial information of customers, credit card numbers, tax file numbers, or other confidential information?
  • A cyber extortion threat?
  • An e-business interruption, resulting from a security failure or internet virus?
  • Costs related to a privacy breach notification of clients private details?

Consider the following claim examples:

Example one

Profile: Diesel service and repair agents, 15 staff and $4M turnover

Background: An employee of the Insured opened a zip file attachment to an email that deployed a variant of ransomware malware. All the files used to open the attachment were encrypted as well as the Insured’s dropbox files in the Cloud, including HR files and employee personal data. Engineers were able to carry on with their operations however all administrative tasks at the Insureds ceased.

Outcome: $5,000 for loss of man hours and IT expenses to repair systems.

Example two

Profile: Accountant, 20 staff and $3.5M turnover

Background: A former IT contractor allegedly logged-in remotely without authorisation and deleted files on the Insured’s server. They also embedded spyware and downloaded viruses onto the server. However, when the police interviewed the individual, he advised that all of his computers were stolen before the Insured’s computers were hacked.

Outcome: $8,000 in costs incurred while restoring and repairing the server damage caused by this incident.

Example three

Profile: Online clothing retailer, 5 staff and $2M turnover

Background: On two occasions in one year, the Insured’s computer system was affected by a CryptoLocker virus, which prevented the Insured from being able to operate as usual.

Outcome: $14,000 in IT expenses to restore the Insured’s systems back to the position they were in before the virus.

Example four

Profile: Raw materials manufacturer, 28 staff and $7.5M turnover

Background: The Insured’s system was hacked via an email they received carrying a Ransomware virus. The virus prevented them from having any access to emails and their network. The hacker held the client’s system to ransom and would only release files if the client paid $12,500. The fact that the client had numerous file shares and common storage areas made their system particularly vulnerable to attack and made it easy for the hacker to encrypt nearly every file in their system.

Outcome: $12,500 in ransom plus an additional $25,000 in IT expenses related to diagnosing the problem, decommissioning the old servers and installing a new network.

So, what actually is Cyber Insurance?

Cyber insurance is designed to protect businesses against a wide range of liability cyber exposures from relying on the internet, email, websites, computer programs, data and from storing private information about their clients.

Who should have it?

Any business that is dependent on critical data stored on computer systems, which could expose them to a cyber attack. (Hint – that’s every business!)

The targets of cyber attacks span a multitude of industries and cyber criminals don’t care where they steal private information from.

The perpetrator could live halfway around the globe. Organised cyber crime rings operate worldwide, 24/7.

Existing insurance policies may be inadequate to respond to today’s digital exposures.

What does Cyber Insurance cover?

Cyber insurance is designed to respond to a variety of cyber risk exposures not covered under conventional insurances.

These include (but are not limited to):

  • The costs associated with notifying individuals that have been affected by a breach, including settling up a call centre and identity theft services.
  • Immediate expenses such as crisis management costs, hiring a public relations firm to manage the fallout from an incident, a forensic IT expert to identify how and where the breach occurred and legal services, including advice on legislative requirements following a breach.
  • Expenses to repair and restore computer systems (including data) and replace loss of business income resulting from the incident.
  • Expenses to deal with a cyber extortion threat and reward payments.
  • Costs to defend claims from third parties and eventual claim settlements, along with the costs of regulatory investigations and the payment of fines and penalties.
  • Multimedia liability claims, such as defamation or breach of copyright, which results from your electronic publishing.

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