FUTURE-PROOFING YOUR BUSINESS

When you’re in business, you’re likely to experience your fair share of accidents, issues and upsets. At RSM Tasmania we provide the ideal small business insurance Tasmania needs.

The challenge is, in 2024 they may not always be the ones you’ve anticipated and planned for in the past.

Advancing technology, the changing economic landscape, climate change and the risk of pandemics means that understanding and managing risks has never been more important.

The Cashless Society

As an example, when Optus suffered a day-long outage last year because of a technical/software failure, it was a brutal reminder that there are new situations arising in our business lives that would have been almost impossible to consider a few short years ago.

The outage affected millions of the telecommunication company’s customers and left thousands of businesses without EFTPOS, internet, and phone services, with many forced to shut up shop until the outage was fixed.

In past years you could simply have requested that a customer pay cash, but in the modern world of tap-tap cards and contactless electronic payments this suddenly becomes impossible and businesses need to factor into their planning how they will continue to operate in the future if the EFTPOS machine, or the internet, go down in the same way again.

Supply Chain Failure

The recent dock disputes in Australia over pay and conditions highlighted how uncertain the continued supply of stock can become.

Whether it be industrial disputes, container ships being attacked on their way around the world, a new pandemic or natural disasters that are becoming more prevalent with the changing climate.

A worldwide shortage of silicon chips in 2021 caused delays in the building of mobile phones, headsets and even car components and, although things are improving in 2024, the ripple effect continues.

To protect their supply chain businesses must pay attention to who their suppliers are, where they might find alternate suppliers and how critical the components supplied are to the continuation of their business itself. How bad would it be if some of these components were suddenly unavailable?

Lithium-ion batteries

One such component is Lithium-ion Batteries which first appeared in about 1990. They can provide more power and storage than the old batteries we used for decades and in a much smaller container. They powered our phones and cameras and a host of other devices.

Then, in 2008, Tesla put them into their cars and a whole new world of electric scooters and e-bikes was born.

Unfortunately, with the rise of their use, Lithium-ion battery fires are another emerging risk. There has been a spate of them in Australia of late, including one believed to have been sparked by a faulty e-bike battery being recharged inside a second-storey unit in Bondi, NSW, in late 2023.

While the number of fires is not high right now, the problem with them is that they can be extremely difficult to put out because one battery catching fire can heat others around it and cause a cascade effect that is almost impossible to stop. Proper storage is an imperative.

All across Australia, these factors and more are causing legislators, governments and councils to re-evaluate their positions on a whole range of different areas and a failure to keep abreast of the changes could lead to the possibility of fines, legal penalties, and loss of customer confidence.

It can be a lot to get your head around, especially on top of the day-to-day running of your business and that’s why it pays to have an experienced broker like RSM Tasmania in your corner.

Part of their job is to help businesses, just like yours, stay abreast of emerging risks and, where possible, help you to mitigate them with cost-effective cover. It’s also why regular communication with your broker is so important.

Your broker will offer you much better and more pertinent advice if you take the time to get to know your broker and help them to know what your business is all about.

It is all part of planning ahead. To quote an American Prelate of the Roman Catholic Church, Richard Cushing “Always plan ahead. It wasn’t raining when Noah built the ark.”

The information in this article is general in nature. If you require specific business advice on any matter on your insurance, you should talk to your broker today.

Talk to Roger Hosie from #RSMTasmania today.
Call Now! (03) 6244 7854, or email roger@rsmtasmania.com.au 

 

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