*Denotes specially enhanced Steadfast policy wordings are available.

The below information is intended to provide a summary and general overview only. It is not intended to be comprehensive, nor does it constitute advice. We attempt to ensure that the content is current, but we do not guarantee its currency. While the information is believed to be correct, no responsibility is accepted for any statements of opinion or any error or omission. You should carefully read any relevant Product Disclosure Statement and/or Policy Wording and seek competent advice prior to acquiring any product(s). In that regard, LFM is able to assist you to select the most appropriate cover to suit your circumstances from our panel of insurers and underwriters. We would be delighted to take your call

Financial Planning, Investments and Risk Insurance

Other Services:

• Risk Management;
• Contract Review Service;
• Business Continuity Planning;
• Loss adjusters;
• Risk surveyors;
• Property Valuers;
• Economic Loss/Business Interruption;
• Workers Compensation/OH & S Compliance/Industry Classifications.

Premium Funding:
Paying insurance premiums by the month, rather than in one annual amount
makes sense for many businesses. Premiums are paid via direct debit to your
nominated bank account. The benefits of utilising premium funding include:

• smoother business cash flow;
  
• a fast, simple application process;
  
• flexibility to make additions to existing policies;
  
• loan contracts that can be structured to suit your needs;
  
• unaffected existing credit lines.

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Industrial Special Risks (“ISR”)

ISR also covers businesses against loss of income arising from physical loss or first-party property damage. Indirect loss exposures can also be covered, including contingent losses following direct damage to suppliers, customers and utilities. One of the main features of an ISR policy is its flexibility. It can be tailored to suit the individual circumstances of each business for both property and business interruption losses.

The ISR policy has 2 Sections, namely:

Section 1 - Material Damage
This covers accidental physical loss or damage to the insured property due to any cause other than those excluded by the policy.

Section 2 - Business Interruption
This generally covers loss of income due to business interruption following a loss or damage due to any peril not excluded under material damage section. Additional Increased Cost of Working and Claims Preparation Costs can be included. For more on information on Business Interruption insurance, click here.

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Business Interruption Insurance (“BI”)

BI Insurance is a true example of an indemnity policy. It is the means of ensuring that the policyholder will have the security of available money to:

• Pay ongoing business expenses;
  
• Retain trained, experienced key employees;
  
• Recover any additional expenditure on loss mitigation;
  
• Receive payment of the net profit the business would have earned.

To receive the appropriate indemnity, it is important to arrange insurance to cover unavoidable ongoing expenses (i.e. 'fixed' costs). It’s also important to insure the business to cover the trading net profit the business would have earned during the interruption.

• BI insurance is more critical to business survival than property or liability insurance protection. It’s an essential and important part of any client's insurance program;
• Assets insurance alone is inadequate by itself;
• Financial losses can exceed the value of Material Damage losses;
• Large financial loss can eventuate from a low value material damage item.

• Research into fire losses in Australia shows that 43% of SME businesses suffering a major fire (not necessarily a total loss) never re-open for business. Despite some form of insurance, 28% fail within 3 years. Only 29% survive.
• Research by the Insurance Council of Australia has revealed that SME businesses made up 17% of GDP, employed 2,500,000 people, yet 42% had no business interruption insurance. Surprisingly, 17% had no insurance - that is nearly 1 in 6 of businesses!
• It is estimated that of those insured, 40% are severely underinsured and 15% significantly underinsured.

SME businesses have limited access to financial resources. They are likely to be highly geared with loans based on personal guarantees made by their directors to creditors. This makes the business's survival vulnerable if not insured adequately.

• The basic concept of BI insurance is simple. However, arranging cover appropriate to the exposure can be a complex undertaking.
• This complexity leads to inadequacies in the policy design, which are often revealed at the worst possible time - when a claim arises.

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Business Insurance

Business Insurance Packages
These packages are usually the most comprehensive and cost effective way to cover most of the risks your business will face. They provide essential cover sections in one packaged policy and it is sensible for business owners to consider all of these sections, details of which now follow:

• Property Damage or Fire and Specified Perils Insurance
  This section covers your buildings, contents and stock against risks such as fire, storm and tempest, impact and malicious damage. The policy also provides full replacement cover if sums insured are adequate. In some cases, this insurance also includes automatic accidental damage cover.
• Business Interruption Insurance
  If your business activities are interrupted as a result of loss or damage to property covered under the Property Damage section, cover is available to protect the income the business would otherwise lose during the time your business is not operating. For more information, please click here.
• Theft and Burglary Insurance
  This section provides cover against loss or damage to your property caused by visible forcible and violent entry to your premises, persons hiding on your property, and persons who threaten or actually use violence.
• Money Insurance
  This cover provides protection against loss of money while in your personal custody, whilst on the premises, on the way to the bank or following forcible entry to your safe. Further cover options are also available.
• Glass Breakage Insurance
  Broken glass is often surprisingly costly to replace. This policy covers you for replacement of both internal and external glass and can also cover damage to frames, sign writing and illuminated signs.
• Public and/or Product Liability Insurance
  This covers the cost of compensation in respect of Personal Injury or Property Damage (including legal fees) which may be incurred as a result of the business being held legally liable. This can cover your liability to the public for your negligence and, if applicable, liability from the products you produce or sell.
• Machinery Breakdown and Spoilage of Stock Insurance
  This provides cover for your machinery, mechanical and electronic equipment against unforeseen and sudden physical damage. You can also cover against deterioration of stock as a result of unforeseen breakdown. If your business income depends on operating machinery or equipment, this cover option is vital.
• General Property Insurance
  General Property Insurance provides cover for individual or specified items away from your usual business premises. You may need to cover items that are away from your regular business premises, such as tools, laptop/notebook computers, mobile phones or audio-visual equipment you take with you on business trips.
• Electronic Equipment Insurance
  This section covers physical loss or damage, including mechanical or electrical breakdown, to computing equipment, as well as loss due to interruption to the business, as a result of loss, destruction or damage by an insured peril. Cover is available for the cost of reinstating data and increased cost of working as a result of the damage.
• Employee Fraud Insurance
  This section covers a business from fraudulent or dishonest acts committed by employee(s) through the stealing of money negotiable instruments or goods that belong to you or are in your possession for which you are legally responsible.

There are a number of other types of insurance relevant to business owners. These include:

Workers Compensation Insurance
All employees injured by accident or industrial diseases arising out of or in the course of their employment are legally entitled to compensation under the various Workers Compensation statutes. The Acts in each State and Territory require employers in Australia to maintain compulsory “no fault” insurance to cover their legal liability. Therefore, if your business operates and has employee in different States of Australia, you will require a policy for each State. For more information, please click here.

Transit Insurance
Cargo insurance is divided into Inland and Overseas (both imports and exports) transit both of which cover property and goods in transit between locations.

Director’s and Officer’s Liability
This policy provides cover to an insured for any loss resulting from a claim as a result of a wrongful act committed whilst performing their duties as a company director or officer.

Corporate Travel Insurance
This covers baggage, overseas medical expenses, money, personal accident benefits, loss of deposits and other contingencies appropriate for insured persons whilst travelling on the business of the Insured. This policy is often purchased on an annual basis. Professional Indemnity Insurance This covers legal liability to compensate third parties for loss sustained by them arising out of negligent acts, errors or omissions or civil liability on the part of the insured in the conduct of their business. For more information, please click here.

Management Liability Management
Liability Insurance policy has been specifically designed for private companies, combining several insurance policies into one to provide cover for a broad range of management liability exposures. These include Directors and Officers Liability, Company Reimbursement, Company Liability and Employment Practices Liability. For more information, please click here.

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Commercial Property Owners Insurance

• Property Damage or Fire and Perils Insurance
  This section covers your building against risks such as fire, storm and tempest, impact and malicious damage. Some policies also include automatic accidental damage cover. The policy also provides full replacement cover if sums insured are adequate, there is coverage included for removal of debris, professional fees incurred and the extra costs that may be incurred to reinstate your building.
• Loss of Rent Insurance
  Imagine if your tenants must vacate your premises as a result of loss or damage to property covered under Property Damage section. Under this section, cover is available to protect the income you would lose during the time your property is unable to be tenanted.
• Theft and Burglary Insurance
  This section covers loss or damage to your property caused by visible forcible and violent entry to your premises.
• Glass Breakage Insurance
  Glass - it’s easily broken and often surprisingly expensive to replace. This policy covers you for replacement of both internal and external glass and can also cover damage to frames, signwriting and illuminated signs.
• Property Owners Public Liability Insurance
  This covers the cost of compensation in respect of Personal Injury or Property Damage and includes legal fees which may be incurred as a result of being held legally liable.
• Machinery Breakdown Insurance
  Machinery Breakdown Insurance covers your machinery and mechanical equipment against unforeseen and sudden physical damage.
• Tax Audit Insurance
  This covers professional fees charged by an accountant or other professionals in connection with a Taxation Office audit, including costs in obtaining expert advice.

Workers Compensation Insurance
All employees injured by accident or industrial diseases arising out of or in the course of their employment are legally entitled to compensation under the various Workers Compensation statutes. The Acts in each State and Territory require employers in Australia to maintain compulsory “no fault” insurance to cover their legal liability. Therefore, if your business operates and has employee in different States and/or Territories of Australia, you will require a policy for each State/Territory. For more information, please click here.

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Public Liability Insurance

As you are no doubt aware, increased litigation during past few years has resulted in requests for business owners to prove they hold current public liability insurance before they can proceed with certain aspects of their business. For example, suppliers and customers may require a Certificate of Currency for your business’s public liability insurance prior to the supply of the business goods and/or services.

Public/Products Liability policies do not usually provide cover for exposures such as product recall, product efficacy and faulty design. Separate policies may be arranged for these risks.

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Product Recall Insurance

• Accidental omission, introduction or substitution of a component or substance during manufacture;
• An error in the design, manufacture, packaging, blending, mixing, compounding, labelling or storage of your product;
• Intentional (malicious) damage by an employee or third party.

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Management Liability Insurance

This Insurance differs significantly from standard Directors and Officers Liability Insurance for a number of reasons. It provides cover for claims made against the company itself as well as for claims made against the company's directors and officers. This cover is particularly significant for directors who are also owner shareholders of a company, as it is usually the Directors and Officer’s personal assets that are exposed to risk.

Some of the key policy benefits are:

• Directors and Officers Liability - providing coverage for mismanagement claims against the directors and officers where they are not indemnified by the Company
• Company Reimbursement - providing coverage for mismanagement claims against the directors and officers where they are indemnified by the Company
• Company Liability - providing coverage for mismanagement claims against the Company
• Crisis Containment - providing coverage for costs associated with the appointment of a public relations consultant to assist with the management of a crisis threatening the business
• Employment Practices Liability - providing coverage for claims by employees against the Company for employment related issues such as unfair dismissal, sexual harassment or discrimination
• Superannuation Trustees Liability - providing coverage for mismanagement claims of the staff superannuation fund
• Employee Dishonesty/Fidelity Guarantee - providing coverage for direct financial loss caused to the Company by the dishonesty or fraud of employees or directors

Other features of the policy are:

• Advance payment of defence costs
• Legal representation costs incurred by directors/officers at official investigations or inquiries
• Cover for directorships held with other companies

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Professional Indemnity Insurance

The Increase in Litigation
As a result of increased accountability, any professional person or consultant providing advice or service faces the prospect of having to defend themselves against claims of a “Professional Indemnity” nature. The cost of legal representative itself, irrespective of any liability to compensate a client, can be potentially financially crippling to a business. This cost is seldom fully recovered, even when the professional involved has been found to have no liability.

The Increased Exposure
The prospect of incurring legal liability and the resultant damage to reputation and financial standing is undesirable for any businessperson. This highlights the need for professionals to review their public exposure and to take measures to minimise the risks associated with conducting their practice or business.

Why hold Professional Indemnity Insurance?

Protection for Professionals
Professional Indemnity Insurance provides protection for professionals against legal liability arising from the conduct of their practice or business. It provides cover for settlement, compensation and damages against professionals. In addition, it provides cover for the significant legal costs and other expenses associated with defending legal actions.

Specialised Legal Representation
Litigation involving professionals is invariably complex and can often involve professionals defending their personal reputation and integrity. It is imperative that professionals have access to specialised and highly qualified legal practitioners who will represent them and protect their interests.

Comprehensive Protection
The increased accountability faced by today’s professionals has highlighted a growing need for a comprehensive insurance product to protect professionals against the financial strain of litigation and to preserve the reputation and integrity of both themselves and their practice. In response to this growing need for protection, Insurers have developed comprehensive Professional Indemnity Insurance policies designed to meet the contemporary needs of clients.

For example, Professional Indemnity Insurance may provide cover for:

• Claims for compensation
  
• Legal costs and expenses
  
• Intellectual Property
  
• Trade Practices actions
  
• Libel and slander
  
• Fraud and dishonesty
  
• Previous business
  
• Outgoing principles
  
• Infringement of copyright
  
• Joint venture liability

Professional Indemnity Insurance may also incorporate the following policy features:
Unlimited retroactive cover
Additional reporting period
Severability and non-imputation

These policies may include an Increased Aggregate Limit of Indemnity effectively doubling the amount of cover.

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Information Technology Combined Professional Indemnity and Liability Insurance

Increased Litigation
As a result of increased accountability, any professional person or consultant providing advice or service faces the prospect of having to defend themselves against claims of a "Professional Indemnity" nature. The cost of legal representative itself, irrespective of any liability to compensate a client, can be potentially financially crippling to a business. This cost is seldom fully recovered, even where the professional has been found to have no liability.

Increased Exposure
The prospect of incurring legal liability and the resultant damage to reputation and financial standing is daunting. This further highlights the need for professionals to review their exposures and to take measures to minimise the risks associated with conducting their business.

Why hold an Information Technology Combined Liability Insurance Policy?

Professional Indemnity Insurance

Protection For Acts, Errors and Omissions
Professional Indemnity Insurance (“PI”) provides protection for professionals against legal liability arising from the conduct of their practice or business, these include acts, errors, omissions and breach of professional duties. PI insurance provides cover for settlement, compensation and/or damages against professionals. In addition, PI insurance provides cover for the significant legal costs and other expenses associated with defending legal actions.

Specialised Legal Representation
Litigation involving professionals is invariably complex and can often involve professionals defending their personal reputation and integrity. It is imperative that professionals have access to specialised and highly qualified legal practitioners who will represent them and protect their interests. In response to this growing need for protection, Insurers have developed comprehensive Professional Indemnity Insurance products designed to meet the contemporary needs of clients.

Professional Indemnity Insurance may provide cover for:

• Claims for compensation
• Legal costs and expenses
• Intellectual Property
• Trade Practices actions
• Libel and slander
• Fraud and dishonesty
• Previous business
• Outgoing principles
• Infringement of copyright
• Joint venture liability

Professional Indemnity Insurance may also incorporate the following policy features:

• Unlimited retroactive cover
• Additional reporting period
• Severability and non-imputation

Product liability
IT professionals can also find that they provide systems that can be regarded at law as a physical product. Because of this, individuals and corporations can seek to recover financial losses as a result of the product. For this reason, the Information Technology Combined Liability policy includes Product liability cover.

Public Liability
Covers the cost of compensation in respect of Personal Injury or Property Damage to third parties. It includes legal fees that may be incurred as a result of the business being held legally liable.

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Corporate Health Insurance

Having an established Corporate Health Plan in place, organisations find that attracting, retaining and rewarding the best people in today’s competitive employment market is easier.

At LFM, we can provide your employees with low cost, tailored health plans, designed specifically for the organisational and employee requirements, which offers a tangible demonstration that an organisation cares for the health and well being of it’s team.

A well tailored Corporate Health Plan, coupled with health and well being initiatives, can be of significant benefit to both organisations and employees by improving employee health, reducing absenteeism, boosting productivity and improving overall morale.

LFM also offers administrative support to make it simple and quick for organisations and employees to transition from current fund arrangements, plus ongoing support to ensure the administrative hassles are kept to a minimum.

There are also tax advantages (and possible penalties) to consider. The Federal Government will ask persons who have a taxable income and reportable fringe benefits of more than $50,000 a year for a single and $100,000 a year for couples and families with one child (threshold increases by $1,500 for each additional child) who don't have appropriate hospital cover in place for an additional 1% Medicare Surcharge Levy. This means that a person’s Medicare levy could increase from 1.5% to 2.5% of their taxable income.

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Trade Credit Insurance

Insurers provide a range of tailored products in the Domestic and Export Markets including:

• Open Trader Cover (Whole Turnover Cover)
• Top Trade Cover (Major Account Cover)
• Catastrophe Cover (Aggregated Loss Cover)
• Export Cover (including Political Risk Cover) The two most common

credit insurance policies are the whole turnover policy, covering all debtors and the major account policy that works on the same principle but covers a defined number of debtors.

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Travel Insurance

Corporate Travel Insurance
Coverage is similar to an Individual or Family travel policy, except that the purpose of the travel is primarily for business. The policy can include cover for cost of replacement staff, extra territorial workers compensation, business equipment that travels with the principals/employees and more. This policy is usually arranged on an annual basis and the business declares the destinations and usual duration of the trips and these are adjusted on the actual trips at the end of each insurance year

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Marine Cargo/Transit Insurance

Home Removals (for transits within Australia only)
Experience peace of mind with this comprehensive door-to-door household goods insurance. Owner packed goods can be included, provided a professional removalist is used.

Specified Items in Transit
This policy protects against losses occurring during transit of any specified items likely to be regularly transported by registered road vehicles, including trailers.

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Construction Insurance

Personal Accident and Illness Insurance
This can provide weekly and lump sum benefits for accidental death or injury to a specified person or persons. Protection may also available to cover illness.

Property Damage or Fire and Perils Insurance
This provides cover for the contract works, building materials, construction plant and equipment against the risks of fire, storm and tempest, impact and malicious damage. Some policies can provide for automatic accidental damage cover. The policy may also provide for full replacement cover.

Theft and Burglary Insurance
This section provides cover against loss or damage to building materials, construction plant and equipment caused by visible forcible and violent entry to premises, persons hiding on property, and persons who threaten or actually use violence. General Property or Special Risks Insurance This covers loss of or damage to specified property, normally of a portable nature, which is not covered under the property policy at the insured’s premises, such as power tools and equipment.

Transit Insurance
Transit Insurance covers property and goods in transit between locations.

Tax Audit Insurance
This covers professional fees charged by an accountant or professional in connection with a Taxation Office audit, including costs in obtaining expert advice

Motor Vehicle Insurance
This cover can take several forms:

• Comprehensive damage and third party property damage
• Third Party Property Damage only
• Compulsory Third Party.

Workers Compensation Insurance
All employees injured by accident or industrial diseases arising out of, or in the course of their employment, are legally entitled to compensation under the various Workers’ Compensation statutes. The Acts in each State and Territory require employers in Australia to maintain compulsory “no fault” insurance to cover their legal liability. For more information, please click here.

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Workers Compensation Insurance

All Australian States and Territories have compulsory workers compensation schemes that require employers to arrange workers compensation policies in each State or Territory where employees are domiciled.

Logical Financial Management is able to facilitate the placement of workers compensation insurance with licensed Insurers and Scheme Agents in all States and Territories of Australia, where allowed by law. We assist our existing clients organising referrals to licensed Insurers and Scheme Agents.

Logical Financial Management is also able to arrange workers compensation specialists to review, provide advice and support to employers managing the frequently changing, often complex and time consuming area of Workers compensation and the associated processes, premium levels, claims management and claims disputation.

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Pleasure Craft and Marine Hull Insurance

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Residential / Commercial Strata Insurance

• Property Building and Common Contents;
• Public Liability $10,000,000 limit of indemnity;
• Office Bearers Liability;
• Fidelity;
• Workers Compensation.

The Property, Public Liability and Workers Compensation are compulsory covers and the others are optional.

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Home Building & Contents Insurance

• Home Building coverage may include the replacement or reinstatement of the home building & out buildings like garages or garden sheds, fences and gates, also other additional costs are covered such as removing debris after the loss, temporary accommodation costs whilst the rebuilding is undertaken and professional fees for redrawing of plans, if necessary. The home owner needs to adequately estimate the cost of replacing their home building after taking those additional costs into account. This may be difficult as every home is different, brick constructed homes are more expensive to rebuild than timber homes and fixtures & fittings can range in cost dependant on their quality. To assist our clients, we have produced a rebuilding cost guide, which can be accessed by clicking here. Professional builders or valuers can assist in giving you an accurate indication of what dollar amount you should insure your home building for, and this will ensure you do not fall short when you need full cover the most. You can find out more about professional valuers by clicking here. Alternatively, you can access Residential Sum Insured Calculators to assist you. Please click here to access the calculators.
• Home Contents coverage may include the replacement or reinstatement of your personal belongings, furniture & appliances, clothing etc. There are two types of coverages available, namely Accidental Damage or Defined Events. Accidental Damage cover is broader as it covers breakage of contents and covers them away from the home address. Defined Events limits coverage to listed perils in the policy wording such as fire, storm & water damage, theft by forcible entry to the premises, however, coverage is generally limited to the home address. There are limits payable under both types of policies in relation to jewellery & valuables, fine arts, collections or curios & these items should be itemised and a recent valuation is usually required prior to cover being granted. Coverage also extends to fusion or burning out of motors in refrigerators or freezers & any subsequent food spoilage. Lightning strikes can damage electrical equipment like computers, fax machines & televisions, and cover may be provided for that event. We recommend that all home owners complete an inventory (including full replacement values) of their contents & update it when they obtain additional items. A photographic record is also a useful way to document your belongings. Please click here for a checklist to assist with calculation of contents cover. Alternatively, you can access Residential Sum Insured Calculators to assist you. Please click here to access the calculators.

At LFM we use quality insurers and superior broad coverage policies, many of which are specially enhanced and available due to our Steadfast membership.

Alternatively, for those persons who may not require any advice from LFM with respect to home building, contents and personal valuables insurance, we have access to Steadfast Direct Home Insurance, underwritten by Western QBE Insurance (Australia) Ltd. This is designed for persons who require a product which is competitive with the direct market insurers on price and coverage. LFM provides this link as a service and it does not represent advice provided by LFM. Any offer should be considered carefully before taking out any policy to ensure adequate cover is provided. To access Steadfast Direct, please click here.

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Motor Vehicle Insurance

Motor vehicle insurance can also be arranged for third party property damage (TPPD), which covers claims as a result of a road accident that cause damage to other parties motor vehicles and property including buildings and fences etc.

Comprehensive motor vehicle (CMV) covers TPPD and also the cost of repairs to your own vehicle and can include the cost of hiring a rental car whilst the repairs are being undertaken. CMV and TPPD policies are subject to excesses that are payable in the event of a claim but can be recovered if the accident is not your fault. These excesses are usually approximately $500. However, additional excesses are applied to policies for inexperienced, traffic convicted, and/or under 25 year old drivers. First time drivers under the age of 20 are difficult to insure, as many insurers do not accept them.

No Claim Bonuses (NCB) are achieved by having claim free years of CMV insurance, and reduce the cost of the premium. NCBs usually work on the following basis: 1 year claim free 20% discount, 2 years claim free 30% discount, 3 years 40% discount, 4 years claims free 50% discount and 5 years claim free 60% discount. As you can see, the NCB can substantially reduce the cost of insuring your motor vehicle. However, there are conditions applied to maintaining an NCB and usually they are: the insured maintains a paid up policy continuously and if they do not, the NCB is valid for 12 months from the expiry of their policy. There are other circumstances where a NCB can be achieved, for example, if an insured has a company car provided and can supply evidence from their employer that they have driven the vehicle for a number of years without claims being incurred, insurers will accept this and provide the appropriate NCB.

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Heavy Motor Vehicle Insurance

Heavy Motor vehicle insurance can also be arranged for third party property damage (TPPD). This covers at fault road accident claims that cause damage to other parties’ motor vehicles and property including buildings and fences etc. Comprehensive motor vehicle (CMV) covers TPPD and also the cost of repairs to your own vehicle.

CMV and TPPD policies are subject to excesses that are payable in the event of a claim but can be recovered if the accident is not your fault. These excesses are usually approximately $500 but additional excesses are applied to policies for inexperienced, traffic convicted, and/or under 25 year old drivers. First time drivers under the age of 20 are difficult to insure, as most insurers do not accept them.

No claim bonuses (NCB) are achieved by having claim free years of CMV insurance and they reduce the cost of the premium.

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Aviation Insurance

Some of the types of aviation insurances that could be required are as follows:

• Private or business aircraft not used for hire or reward
• Commercial aircraft for private or business uses for carriage of passengers and baggage
• Rental aircraft for lease or charter to persons or organisations
  Flying schools
• Aero clubs
• Aerial agricultural work - including spraying, fertilising, seeding or dusting
• Farm and station aerial work - including mustering, baiting and shooting
• Aerobatics
• Parachute operations
• Hangar keepers liability
• Loss of licence due to medical or other unforseen reason

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Carrier Insurance

Carriers Goods in Transit
This policy offers a flexible insurance cover for customer's goods in transit, allowing the carrier to arrange compensation for goods lost or damaged irrespective of legal liability. Premium charged for this policy is by deposit, adjustable on gross freight earnings.

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Inpatriate Medical Insurance

Employers/Sponsors/Companies
Employers/Companies who sponsor international personnel to Australia on business Visas (usually 457 & 442 Visas) have obligations in relation to hospital and medical expenses. At LFM, we can offer solutions to help manage these obligations.

Information for Employers/Sponsors/Companies with respect to 457 Visas
Since 1st November 2005, Department of Immigration & Citizenship regulations note that by sponsoring a Temporary Resident to Australia involves accepting responsibility for:

• the medical and hospital expenses incurred by the sponsored person for treatment administered in a public hospital;
• the costs of return travel to home country.

Note that these undertakings differ from those required of sponsors who lodged their sponsorship application prior to 1 November 2005.

These undertakings releases the Australian Government from any liability for the medical and hospital costs incurred in a public hospital, and places the responsibility on the Employer/Sponsor/Company.

Employers/Sponsors can require sponsored employees to sign an employee agreement requiring the employee to maintain health insurance which is deemed acceptable to the Employer/Sponsor.

Please note that, where an applicant is working for a Sponsor on a subclass 457 visa, the Sponsor's obligations remain in force until the visa holder is granted permanent residence. This does not change if the 457 visa holder is issued with an Interim Medicare Card, as advised by Business Employment Section, Department of Immigration & Citizenship (since November 2004).

With respect to non residents, who is eligible for Medicare?
The Australian Government has signed Reciprocal Health Care Agreements (RHCA) with the following countries:

For persons from the United Kingdom, Sweden, Finland, Norway and the Netherlands, we provide the following information:

The Australian Government has signed Reciprocal Health Care Agreements (RHCA) with the governments of the United Kingdom, Sweden, Finland, Norway and the Netherlands which entitles you to limited subsidised health services for medically necessary treatment while visiting Australia.

• You should receive a Reciprocal Medicare Card for the duration of your approved stay in Australia, from a Medicare office. Eligibility is determined by Medicare - you must have come directly from your home country to Australia, i.e. you have been paying tax recently in your home country. (take proof of your country of citizenship/residence i.e. your passport);
• You should receive medically necessary treatment in a public hospital. Medically necessary treatment means any ill-health or injury which occurs while you are in Australia and which requires treatment before you return home, as defined by Medicare;
• However, there are very long waiting periods of up to a year or more for non-emergency admissions;
• You are entitled to claim benefits from Medicare for some out-patient services if you obtain a Reciprocal Medicare Card;
• You should receive pharmaceuticals at subsidised Pharmaceutical Benefits Scheme (PBS) levels, which is the same cost as Australians pay (by presenting your Reciprocal Medicare Card);
• You cannot seek exemption from the Medicare Levy (1.5%);
• You will be liable to pay the Medicare Levy Surcharge of 1% (MLS) if you do not hold complying private health insurance.

Please click here find out more information from the Medicare website.

For persons from Malta and Italy, we provide the following information:

The Australian Government has signed Reciprocal Health Care Agreements (RHCA) with the governments of the United Kingdom, Sweden, Finland, Norway and the Netherlands which entitles you to limited subsidised health services for medically necessary treatment while visiting Australia.

• You should receive a Reciprocal Medicare Card for a period of six months from the date you arrive in Australia, from a Medicare office. Eligibility is determined by Medicare - you must have come directly from your home country to Australia, i.e. you have been paying tax recently in your home country. (take proof of your country of citizenship/residence i.e. your passport);
• You should receive medically necessary treatment in a public hospital. Medically necessary treatment means any ill-health or injury which occurs while you are in Australia and which requires treatment before you return home However, there are very long waiting periods of up to a year or more for non-emergency admissions;
• You are entitled to claim benefits from Medicare for some out-patient services if you obtain a Reciprocal Medicare Card;
• You should receive pharmaceuticals at subsidised Pharmaceutical Benefits Scheme (PBS) levels, which is the same cost as Australians pay (by presenting your Reciprocal Medicare Card);
• You cannot seek exemption from the Medicare Levy (1.5%);

Please click here find out more information from the Medicare website.

For persons from the Republic of Ireland and New Zealand, we provide the following information:

The Australian Government has signed Reciprocal Health Care Agreements with the governments of the Republic of Ireland and New Zealand which entitles eligible persons to limited subsidised health services for medically necessary treatment while visiting Australia. As a resident of the Republic of Ireland or New Zealand you are covered for the duration of your approved visit to Australia.

• You do not receive a Reciprocal Medicare Card;
• You will receive medically necessary treatment in a public hospital (by showing your passport). Medically necessary treatment means any ill-health or injury which occurs while you are in Australia and which requires treatment before you return home;
• You should receive pharmaceuticals at subsidised Pharmaceutical Benefits Scheme (PBS) levels, which is the same cost as Australians pay (by showing your passport);
• You can seek exemption from the Medicare Levy (1.5%) by completing the Medicare Levy Exemption form, and lodging this at the end of each tax year, with the Medicare Levy Exemption Unit. If the exemption is granted, the refund of the 1.5% Medicare Levy is processed through the annual tax return;
• You will not be liable to pay the Medicare Levy Surcharge of 1% (MLS) if the Medicare Levy Exemption is granted.

Please note: If you are a New Zealand citizen residing in Australia and are not on a temporary resident visa, you may be able to establish permanent residency and therefore be eligible to enroll in Medicare. You need to check your Medicare eligibility before applying for Inpatriate Medical Insurance.

Please click here to find out more information from the Medicare website.

The Australian Health System – General Information

Medicare
Medicare is the publicly funded Australian health system. It ensures a high level of health care for all Australians regardless of their level of income.
Medicare is not available to Temporary Residents, unless they are from Reciprocal Agreement countries, in which case the benefits are limited to "medically necessary" treatment, see details above for relevant Reciprocal Agreement countries.

It is for this reason that Employers/Sponsors should consider establishing Inpatriate Medical Insurance for Temporary Residents and Overseas Visitors working in Australia.

For example, if an Employer Sponsored United States citizen were to have a stroke or heart attack in Australia, Medicare (the Australian Government) would not pick up ANY of the costs associated with hospitalisation, surgery, recovery, etc. Their Sponsor, or their Employer, if that employer sponsored them, would be liable for all public hospital related expenses incurred in Australia. That is can be a very expensive risk to self-insure, so Sponsors require 457 Visa Employees to take out relevant health insurance.

If you are eligible and enrol in Medicare, you may receive a Reciprocal Medicare Card (depending upon your country of origin), also referred to as a Visitor Medicare Card. All public hospitals and some private medical clinics accept Medicare cards and "bulk bill" Medicare, in which case you do not have to pay for treatment. You will be asked to sign a bulk bill Medicare form. There is no obligation on a general practitioner or specialist to "bulk bill" in which case you will have to pay the account and claim back from Medicare the portion covered by the Scheduled Fee. You will be out of pocket by the "gap" which generally ranges upwards of 60% of the total account. Very few specialists bulk bill, and those who do have waiting lists of several months. Specialists’ fee "gap" can range upwards of 150% of the Medicare Scheduled Fee. If you have no access to a Reciprocal Medicare Card, you may be exempt from the Medicare Levy of 1.5%, see below.

The Medicare Levy Surcharge (MLS)
Under Australian Taxation Law, anyone who holds a Medicare Card or who is entitled to hold a Medicare Card, has to pay the 1.5% Medicare Levy. If they do not have complying Private Health Insurance, they also have to pay the 1% Medicare Levy Surcharge (MLS), which is a surcharge levied by the Tax Department after assessment of an individual's tax return at the end of each financial year. This surcharge is applied to incomes over $50,000 per annum (for a single person) and over $100,000 per annum (for a couple). To find out more from the Australian Taxation Office website, please click here

Medicare MLS exemption forms can be found on the Medicare website. Please click here to access the relevant section of the site.

Medicare and "the Gap"
Under Australian law, health insurance funds insuring Australian residents are only allowed to reimburse up to a set amount. The amount is set by the Government and is found in the Medicare Benefit Schedule (MBS). In certain cases, funds are able to reduce the 'gap' by entering into contracts with 'participating hospitals'. The actual amount billed will vary depending on the type of treatment. Doctors sometimes charge up to twice the MBS amount, and many senior specialists and surgeons will charge up to three or four times that fee, hence the expression "the gap" that is used to explain the problem.

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