August 2nd, 2021 by igniite

Insurance is not boring now and here is why!

If there is one thing I hate more than Insurance, it is making a claim, after 2 foiled attempts recently.

We all need insurance and no more important than Business Insurance, notably, Professional Indemnity.

Most businesses meet their obligations and pay well-earned cash, for the benefit of cover when needed. Does anyone read those long Terms and Conditions? Most businesses hope it will never be needed.

My Professional Indemnity Insurance was needed just recently.

I am now ready to tell my story.

I have diligently paid my PI every year in business. In 2020 I suffered some serious health issues, moved countries, and changed my business name. (In addition to surviving small business during COVID). It was at this time that I became attached to a legal writ as third party. I cannot go into details, because I am bound by the settlement terms, to say no more. I will just say, it was a very real David and Goliath story. I was the David.

I was the innocent party. I did not have a mutual contract with this company of any sort. Goliath was just…. mean (and possibly a bit jealous that our clients love us more than them.)

Essentially it was their word, against mine, but in the end, it still cost me over $66,000 in legal fees and a settlement of $50,000 in addition to this. They spent a lot more than that in legal fees, but they are 10x bigger and they started it.

Just restating this again for impact.

While I was undergoing a double mastectomy for Breast Cancer and negotiating how to move countries during COVID, I was being sued, “quite dramatically” by ( lets call them) Goliath Accounting from inner city Melbourne.

So here is what I have learned from this:

• Know what your insurances are covering you for. I never had any idea that, my case, would be eligible until just recently. According to my T & C’s ‘just recently’ may not be recent enough and one deal breaker with the insurer.

• Never let a policy lapse. Because I had changed business names, my insurance renewal had not come to my inbox, therefore lapsing for 4 weeks. This may be the other deal breaker.

Protect your business with insurance, but more than that, know what it means.

We have:

• Professional Indemnity

• Public Liability

• Workers Compensation

• Cyber Insurance

And are now looking into Audit.

This has been a costly lesson and not one I will repeat.

I was knocked back by my health Insurer as well, on a technicality.

Deal with David.

Don’t touch Goliath. They are robbers.

Side note: We used a WorkCover ‘specialist’ previously, but were so underwhelmed by the service, we took it back and are now doing it ourselves and that of many clients.

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