Just to give you an example regarding "Public Liability".
A small business which I have recently had some involvement with, were unable to get PL in Australia.
This meant going ofshore to secure PL insurance, or closing down. The closing down was really no option as they were regarded as one of the market leaders in their field and were planning on "Franchising" the business. Many of the large O/seas insurance brokers were not interested in taking on the risk.
Finally,after much research we managed to secure an insurance company who was prepared to insure for PL.
Wait for it!!
The Insurance Company was formed early this year in the province of the "Coco Islands" by an Australian. Although you pay for the insurance @ twice last years premium, there is no guarantee that they will cover a $10 mill Public Liability if the need were to arise.
You may ask "Whats the point of PL insurance if there is no guarantee".
The answer. To satisfy the "Customers" that the Company is covered or shut the doors.
This is not an isolated case. When we approached many of the O/seas Insurance compamies, we went as a large group of businesses under the same umbrella.
The insurance underwriting would have been @ least $500,000. However, as many of them wanted to remain in business they followed the same path and that was to have the Insurance group from the Coco Isl. to underwrite it.
I hope that no one has a claim this year as this industry will be completely stuffed.
