Dreamworld Coronial Inquest: Key actions to reduce risk exposure in your organisation

Specialist Services

The Dreamworld Thunder River Rapids Ride incident will forever be remembered as a tragic loss of life. Through the coronial inquest, we’ve come to understand that accidents such as this one can occur when organisations don’t have the right frameworks in place. While we like to think we have our risks well managed, it doesn’t matter how many layers of control exist, incidents will occur if those layers are ineffective.  Following on from the webinar by Verus Managing Director, Cameron Clark and Honan’s , Head of Risk Consulting, here are three key actions to help you reduce organisational risk. 


  1. Examine Governance and assurance activities supporting Senior Management

Findings from the Dreamworld Coronial inquest demonstrate how poor governance activities can undermine organisational decision-making. Senior management have obligations under WHS law to exercise due diligence. Exercising that due diligence and making decisions that impact on organisational health and safety requires access to up-to-date knowledge of health and safety legal requirements and an understanding of the organisation’s critical risks. The recent introduction of Industrial Manslaughter laws across a number of jurisdictions in Australia will only increase the importance of effective governance and assurance going forward.

Ask yourself the following questions about your governance and assurance activities:

    • Are they well designed?
    • Are they commensurate with risk?
    • Are they independent?
    • Are they followed through?


  1. Identify and manage your risks

The findings from the inquest revealed a failure by the organisation to systematically manage health and safety hazards and risks across the organisation and its rides. It failed to ensure that systems and procedures designed to support the organisation were properly implemented. Consequently, there were numerous missed opportunities for Dreamworld to identify risks, implement measures to prevent reoccurrence of incidents, and ensure their employees had suitable competencies to operate rides and respond in emergencies.

Ask yourself the following questions about your risks:

    • Are systems regularly tested to ensure they are working as intended?
    • Does their design allow for proper consultation with experts?
    • Are there suitable resources (including people, training and regular auditing) available to pick up on warning signs and investigate?
    • Is risk used effectively to inform organisational decision-making?
    • Are people properly trained/qualified to undertake safety management tasks?
    • Does training for high risk tasks include suitable instruction in emergency response?


  1. Consider your plant and equipment maintenance

The Dreamworld incident highlights how quickly a catastrophic incident can occur when it involves plant and equipment that is poorly managed and maintained. It took just over a minute for four people to be trapped in the mechanism of the Thunder River Rapids Ride following the failure of an associated water pump. Plant and equipment, particularly complex systems, demand a comprehensive program to ensure safe design, modification, operation, repair and maintenance in accordance with strict legislative requirements.

Ask yourself the following questions about your plant and equipment:

    • Are plant and equipment designs and maintenance programs adequate?
    • Have designs and maintenance programs kept pace with industry advances, legal obligations and Australian standards?
    • Are plant systems, including emergency systems, integrated?
    • Are plant modifications informed by risk assessment?
    • Are faulty plant / breakdown procedures robust and well understood and problems fixed rather than ignored?
    • Are operator tasks commensurate with the available time and human cognitive abilities?


If you missed the webinar, you can view the recording here.


We’re with you all the way

We’re pleased to support businesses in addressing risks and building overall resilience. As always, we recommend close consultation with your Broker and WHS Specialist to ensure your risk mitigation strategies are up to date, focused on best practice and are appropriately audited.  To learn how Honan can further support your business, please reach out at any time.


Sharon Rutherford – Head of Risk Consulting




Image: Flowers at a memorial in front of Dreamworld, November 2016. Picture: Chris Hyde

VIC Workers Compensation Renewals: What you need to know for FY20/21

Workplace Risk

As employers wrap up their Workers Compensation requirements for FY20 and plan out their FY21 commitments, our Workplace Risk team have summarised the complex key information and dates for Victoria, in this simple cheat sheet. For information about the Workers Compensation process in other states and territories, please contact us using the details below.


Workers Compensation Renewal Invoices 

Victorian Workers Compensation (WC) renewal premium invoices are available from July 4 2020, and revised notices will be generated by WorkSafe each weekend during July.

Based on your available claims statements and estimated wages, premium projections and industry classification comparisons have already been calculated by your Honan Workplace Risk Consultant. If you are yet to receive these, or would like further information, please contact us.


Premium Discounts

To be eligible for a 5% premium discount, employers must:

  • pay any outstanding premium from FY20 policy period (or previous years)
  • pay the full (annual) amount listed on their FY21 WC renewal invoice (less 5%) by no later than 31 August 2020

Premium Funding Option:  You may also like to consider a premium funding arrangement with Honan. This can provide immediate benefit as financing the full FY21 premium payment to Worksafe will maximise the discounts described above.


Updates to Claims for FY21

The claims experience period for 2020/21 has been determined as follows:

  1. The claims reporting period used for the employers’ experience rating has been extended to three years. This means (consistent with previous years), in the period of 1 January 2017 to 30 June 2019, claims costs including statistical case estimates will be used
  2. In the period 1 July 2019 – 31 December 2019, only weekly payments will be included (statistical case estimates will be excluded)

Worksafe Victoria is expected to release the FY21 claims experience period by April 2021.


Certificate of Currency
If there is no outstanding premium to pay on your account, you can obtain a Certificate of Currency either online, or on request from your Honan Workplace Risk Consultant.


Ensure Your WC Renewal Details Are Up to Date

Any wage updates received before 30 June will be reflected in your FY21 premium calculation. In the absence of any updates, WorkSafe will simply calculate your premium based on your remuneration estimate for FY20, indexed by 4.75%.


Avoiding Financial Penalties

To minimise the risk of financial penalties, any revised remuneration estimates must be disclosed to Workcover within 28 days. Our recommendation is always to contact your broker ASAP if:

  • What you expect to pay in remuneration is 20% or above your current estimate, or
  • What you have paid in remuneration to date exceeds your current FY estimate.

To update your remuneration, or understand any other elements of your policy, reach out to your Honan Workplace Risk Consultant at any time, or visit the WorkSafe’s Online Employer Services portal directly.

For the FY20 policy period, you must certify your Rateable Remuneration no later than 23 October, 2020. 


VIC Workers Compensation Renewals: Important FAQs & Deadlines


How does remuneration impact premium?

Victorian remuneration includes wages, salaries, superannuation and other benefits paid to your workers. The following table outlines how premiums are calculated based on remuneration.


Premium Calculation


Can industry classification impact premiums?

Yes. Premiums are largely influenced by the industry classification of your business. If the industry classification is incorrect on your policy, you may be paying more for your premium than necessary.

We always recommend reviewing your industry classification before your renewal date.


Key dates for VIC workers compensation insurance premiums in the 2020/21 premiums order:                                                                               

  • 4 July – 2020/21 premium notices sent to all employers
  • 31 August – Pay 2020/21 premium in full to receive a 5% discount
  • 1 October – Pay 2020/21 premium in full to receive a 3% discount
  • 23 October – Large employers to certify remuneration for 2019/20 year
  • 26 March 2021 – Small employers to certify remuneration for the 2019/20 year.



We’re with you all the way.

As always, we’re committed to providing you with timely updates and support. Feel free to contact our Workplace Risk experts for more information, including the Workers Compensation process in other states and territories.


Sharon Rutherford – Head of Workplace Risk 



Jules Paolino – Workplace Risk Consultant 



Grace Rod – Client Executive Workplace Risk 


Changes to VIC Industrial Manslaughter Laws: Implications for Business

Workplace Risk

Keeping your people safe

Industrial Manslaughter legislation holds businesses liable for the death of a person (worker or other) resulting from practices of neglect in the workplace. To ensure the safety of their people, businesses must conduct adequate training and risk management processes to mitigate potential hazards and risks at all times.  


What do the July 1 changes mean for your business?

The amendments to Victoria’s Workplace Safety Legislation involves the addition of two new workplace manslaughter offences under the Occupational Health and Safety Act

  1. Where a person commits workplace manslaughter when engaged in conduct that is negligent in breach of applicable duties owed to another person, and where the negligent conduct has caused the death of a person.  
  2. Where a person who is an officer of an entity will commit workplace manslaughter when they engage in conduct that is negligible, in breach of an applicable duty owed by the entity to another person and where the conduct causes the death of a person.  

These changes impact anyone who has a duty under the OHS Act and is aimed at people who are obliged to maintain a safe workplace for employees. 


Under the Act, an employer (duty holder), is required to:

  • provide a workplace free of health and safety risks as far as reasonably practicable
  • constantly monitor health and safety implications and regularly review and update safety procedures to best mitigate risks. 


Who is a responsible party?

A person, body corporate and officers who owes applicable duties to ensure the health and safety of another person in the workplace can be charged with industrial manslaughter. If convicted of workplace manslaughter, a maximum of 20 years imprisonment for individuals and/or a maximum fine of $16.5 million for body corporates may be applied.  


Persons who can be charged under the Act include:

  • Directors and secretaries of companies
  • Partners of a partnership or joint venture
  • The trustee of a trust
  • Persons who participate in the making of decisions that affect a substantial part of the organisations business 
  • Persons who have the capacity to significantly affect the organisation’s financial standing.

Penalties will not apply to employees or volunteers.


How can you protect your business?

For Senior Management Teams to discharge their duties or responsibility, they must be able to answer the following:

  • Do you completely understand WHS requirements and current risk or issues?
  • Given the work you perform, what incidents are likely to occur?
  • Do you have the right safety systems and resources to prevent hazards and incidents from occurring?
  • Do you receive sufficient information on which work practices result in workplace injury and how are practices being corrected?
  • Are you comfortable you are meeting your WHS obligations?
  • Are you confident individuals across your organisation are all effectively management WHS?


We’re With You All The Way

As always, we’re committed to providing you with timely updates and support. Our Honan Workplace Risk experts are ready to support businesses in reviewing their risk management compliance, and readying themselves for Victorian Industrial Manslaughter Law updates. Please reach out to learn how Honan can help support and protect your business.


Sharon Rutherford – Head of Workplace Risk 



Jules Paolino – Workplace Risk Consultant 



Grace Rod – Client Executive Workplace Risk 



Returning to Work: 5 Ways to Mitigate Workplace Risk

Workplace Risk

As Australia continues to control the spread of COVID-19, measures to kickstart the economy have become a parallel point in focus. While ‘easing out of #iso’ requirements and timelines differ by State and Territory, many workplaces have commenced their Covid comeback. Amid ever-changing environments, managing a safe return of the workforce presents a set of new challenges for employers. To support businesses in navigating this critical transition, we’ve assembled 5 ways to mitigate workplace risk:


1.  Always start with safety

While Government restrictions are slowly being lifted, this does not change an employer’s obligations to provide a safe working environment for their employee (nor the obligations of the individual). Employers and individuals must maintain strict hygiene practices (including the provision/use of appropriate Personal Protective Equipment) and follow Government directions. The employer’s duty to provide a safe working environment also extends to employees’ travel to and from work.


Demonstrate how you’re providing a safe working environment:

  • clearly communicate any changes to existing safety management systems to staff
  • explain how you’re implementing Government requirements to address minimum standards of cleanliness, together with any additional measures being taken to ensure safety within the workplace
  • physically display any relevant guidelines somewhere easily visible in the workplace.


2. Clear & timely communication 

As restrictions gradually ease, employers must keep their employees updated with clear and regular updates on the business’s planned transition back to the workplace. Purposeful communications will always cover; latest changes, what they mean for employees, and how such changes align with Government guidelines.


In communicating with your team:

  • outline your proposed transition plan
  • share any barriers to achieving the plan, and how the business is seeking to overcome them
  • provide clear timeframes, with specific attributions to which group/s of people will be impacted (if applicable)
  • clearly outline what practices, behaviours or policies are mandatory vs optional for your people
  • share to-the-moment updates as things change.


3. Manage your people risks: physical & psychological

Similar to our recommendation around the use of ‘working from home checklists’ at the start of the pandemic, employers must consider all practical risks associated with returning their workforce to the office. By this stage, most employees will have adjusted to a comfortable working from home routine and found a rhythm that works for them. Therefore, employers must tread carefully with their people’s capacity to process more change and stand ready to mitigate their potential anxieties and fears about returning to the office.


To identify and reduce people risks: 

  • consider a return to work checklist – preparing this will enable you to better understand the needs of your people, and ultimately support them with the right advice, tools and resources required for a smooth transition
  • communicate the benefits of re-establishing normal routines as soon as possible, and invite feedback / Q&A
  • provide ongoing occasions for Q&A and encourage open dialogue between your people. It’s crucial that staff feel supported to approach the business with their concerns
  • offer assistance with mental health challenges – check your EAP provider (such as Access EAP) is equipped to provide appropriate support. Continue to promote and encourage the use of EAP and consider in-house counselling sessions with EAP providers. If you don’t have an EAP, feel free to get in touch and we can help you find the right provider
  • continue to communicate with employees who are yet to transition back to work
  • ensure return to work plans are in place for any employees with psychological and /or pre-existing physical injuries
  • conduct a Workplace Health and Safety risk assessment of your new workplace set up to identify potential people safety risks and develop contingency plans to support these
  • update your insurance broker if there have been clear changes to your workplace operations. To learn more, check out our 30-minute webinar Insurance Implications for Altered Operating Models and the accompanying 3 Key Actions for Business summary.


4. Manage expectations

As staff begin to return to workplaces, it’s a good opportunity to remind employees of their roles, responsibilities and obligations. While some leniency may have been offered during COVID-19, and potentially changes to salaries too, this may not necessarily change the individual’s contractual arrangements. By providing appropriate forums for clear communication around this, employers can support individual transition plans, particularly if working from home is not continued in the long-term. As always, open, transparent, regular two-way communication between employer and employee is key.  Not everyone will be in the same position and some employees may have the right to apply for flexible working arrangements in the long term through the National Employment Standards. You can find out more information though Fair Work.


5. Lessons learned from lockdown 

A business’ ability to evolve during challenging times can be an unexpected silver lining. When you feel your people are settled into the ‘next norm’ and well placed to share feedback, be sure to seek their feedback on their experience in recent months, and your business’ actions through COVID-19. Asking what worked, and what could be improved, will offer valuable insights for any business looking to enhance their resilience, business operations, and people experience at large.



We’re with you all the way

We recommend all businesses familiarise themselves with the Safe Work Australia site as they plan their COVID-19 comeback. The following Reopening Safely Sample Practices report from McKinsey is also highly informative. For more on Workplace Risk, our team is only a call or email away. Please contact us to learn more about how we can help.


Sharon Rutherford – Head of Workplace Risk


m– 0499 799 558


Mental Health: Simple Strategies and a Shared Responsibility

Workplace Risk

For many of us, recent months have tested our mental health like never before. As we begin to emerge from isolation and adjust to life with fewer restrictions, there’s never been a better time to reflect on our mental wellbeing and the wellbeing of those around us.


Thanks to the Government’s National Mental Health Commission, together with numerous supporting bodies such as Beyond Blue, the awareness, understanding and importance of mental health across Australia is growing each day. Unfortunately, the statistics around mental health incidences are still alarming. Beyond Blue reports that when it comes to Australians:

  • 1 in 7 experience depression in their lifetime 
  • 25% experience a form of anxiety in their lifetime
  • 1 in 6 are currently experiencing depression, anxiety or both
  • 1 in 6 females will experience depression in their lifetime, and 1 in 8 men
  • 1 in 3 females will experience a form of anxiety in their lifetime, and 1 in 5 men
  • 1 in 8 are currently experiencing high or very high psychological distress.

Such statistics are a powerful reminder that in almost every office across the country, at least one person (and likely more) is suffering, or has suffered, from some form of mental health challenge. Given we spend so much of our time at work, it’s therefore critical to know what signs of compromised mental health to look out for, and how we can check in on each other.


Keeping our people at their best

At Honan, we’re fortunate to partner with Access EAP – a fantastic provider of independent counselling – either face to face or over the phone/email – to any of our people who seek it. Noting our people are our most important asset, doing everything we can to keep them feeling their best is paramount. For us as an employer, that means:

  • equipping our people with the ‘on demand’ support (via Access EAP) they need to navigate any situation that may be thrown their way
  • providing regular tips for optimising mental health via monthly wellness newsletters
  • through the Covid-19 WFH period, implementing a ‘buddy system’ to keep everyone connected, and attuned to each other’s challenges – big or small. Buddy catch ups have taken shape in all kinds of ways; from simple 10-minute virtual coffees to hour-long virtual lunch dates, or just a quick text exchange
  • ensuring all our people know they’re supported, and will continue to be supported, come what may.


Common mental health challenges in the workplace

Anxiety and depression are the most common mental health issues occurring in office environments. Taking the time to observe the behaviours and emotional states of our co-workers, and ourselves, is paramount to the detection and prevention of anxiety and depression.

So what can we look out for? Beyond Blue has outlined some key signs and symptoms of depression.


Simple strategies to optimise mental health

Identifying challenges or concerns is one thing, but knowing what to do about them is the powerful next step. Mindblank have  shared some great strategies for managing your own potential mental health issues and/or sharing with others in your team:

  • Talk about your emotions: if you’re not comfortable sharing your thoughts with someone you know, professionals and communities are always there to help.
  • Stay active: one of the best ways to release stress and feel-good chemicals in your brain is through exercise. 20-30 minutes per day more than two hours before sleep can improve your mental wellbeing and general health.
  • Eat nutritious foods & stay hydrated: the food you eat nourishes your entire body, brain included! Eating a healthy, balanced diet is a major contributor to good mental health. 
  • Focus on one thing at a time: bringing mindfulness into your daily routine is incredibly beneficial for your health. You can start this practice by focusing on your breathing, and being present. Mindfulness and meditation apps abound!
  • Go to bed on time: building a positive sleep routine is great for your wellbeing. Evidence suggests that the less sleep you get, the greater your chances of experiencing poor mental health.


Staying well – a shared responsibility 

Amongst the pressures of work and everyday life at large, maintaining good mental health practices can quickly fall by the wayside. Importantly, we must remember we not only owe it to ourselves, but each other, to prioritise our states of wellbeing. The onus of responsibility is a shared one – to shift the statistics we must remember to look out for each other, and take active ongoing steps to keep our own mental health tip-top. We all have our struggles, but together we can lessen their impact, and support each other in living happy, healthy lives. 


If you are feeling overwhelmed or believe you are suffering from a mental health issue, please reach out to a mental health professional. Here are some great additional resources:

Lifeline Australia

Beyond Blue

What JobKeeper Means for Your Premium: A State by State Snapshot

Workplace Risk

With the introduction of the Federal Government’s JobKeeper scheme, and subsequent updates from States and Territories, we’ve summarised what you need to know about the program, and how it may impact your insurance premiums.


Updates from States & Territories:


WorkSafe Victoria

Employers utilising JobKeeper in Victoria will be exempt from:

  • Payroll tax
  • WorkCover premiums on payments to their employees if their staff are currently stood down.

Any eligible JobKeeper payments to meet the $1,500 threshold will not impact the calculation of WorkCover premiums.



JobKeeper payments made to workers who are not performing any duties will be excluded from the wages used to calculate premiums. If an employee is working at a reduced capacity and is in receipt of top-up payments made through the JobKeeper subsidy, only the wages earned for hours worked will be used in the calculation of premiums.


WorkCover QLD

An employer may pay the JobKeeper subsidy to workers as a top-up payment or subsidy payment, but not as a payment for work done. Payments made for this purpose are not declarable wages. As such, employers should exclude any JobSeeker amounts paid to workers, as this is not a payment for work performed.


RTW South Australia

JobKeeper wage subsidy payments will not be considered remuneration for the calculation of premiums. Additional information concerning premium relief will be released by RTWSA at the end of FY20.


WorkCover WA

As the Job Keeper is a top-up or subsidy and not payment for work completed, wages declared should reflect the amount paid to workers for the period of work that has been done. Therefore, any top-up JobSeeker subsidy payments should not be declared as part of wage declarations.


WorkSafe Tasmania, Northern Territory & Australia Capital Territory 

TAS, NT and the ACT are awaiting advice from Treasury to determine the impact on employer premiums. No information has been released at the time of writing (13 May); however, information will be updated here once this is announced.


Example Scenarios:



  • Scenario 1: If an injured worker is certified unfit for employment, they will be paid their full workers compensation entitlement.
  • Scenario 2: If an injured worker has partial working capacity and is receiving the JobKeeper subsidy as a top-up to their wages, only the wages earned for work completed would be declared for the purpose of premium calculation.



  • Scenario 1: If an employee is stood down from their employment and is receiving the JobKeeper subsidy, this payment will not be considered as rateable remuneration for the purpose of premium calculation.
  • Scenario 2: If an employee is working reduced hours and in receipt of top-up JobKeeper payments, only wages for the hours worked will be used for premium calculation.



Key Takeaways: 

  • WorkCover VIC, NSW, QLD, SA and WA will not be considering the JobKeeper subsidy as rateable remuneration, and any wages paid as part of the JobKeeper subsidy should not be declared as rateable remuneration.


  • Businesses who are under financial hardship may choose to adjust their initial remuneration estimate for 2019/20 now and seek a premium refund. Alternatively, businesses can await year end FY20, and use any premium return as credit towards their 2020/21 premium.



We’re with you all the way

As always, we’re committed to providing you with timely updates and support. For more information about COVID-19 related Government stimulus packages, legislative updates and business continuity, please head to the Honan News Hub or Honan LinkedIn.

For more on Workplace Risk, our team is only ever a call away. Please contact us to learn more about how we can help.


Sharon Rutherford – Head of Workplace Risk


m– 0499 799 558


Jules Paolino – Workplace Risk Consultant


m– 0499 799 464


Grace Rod – Workplace Risk Client Executive


t– +61 3 9947 4355


Powering Up & Switching Off: 4 Tips for #ISO Survival

Medical & Health

Imagine this: you wake up in the morning, you shower, get dressed and promptly head out the door for work.

Now this: you wake up in the morning, you reach for your phone, open your inbox and so begins the working day …


With #isolife now in full swing, the former may now seem like a distant memory. Between new competing demands, new environments, and new office comrades (ahem, family), the lines between ‘work-work’, ‘home-work’, and genuine downtime have never been more blurry. At times you may even feel the lines between morning, afternoon and evening barely exist. So how on earth do we maintain productivity? 

At Honan, we have a few tricks up our sleeve. Here are our top 4 tips for powering up, and switching off through this wild and weird world of #iso.


1. Start with space

The first few #iso weeks were a major adjustment period for most of us, with fundamentals of mere survival occupying most of our thinking. “Do I have what I need?”, “Am I feeling ok?”, “Is my wifi working?” “Have I been hygienic enough?” 

Because we are context-based creatures, our physical space is core to our ability to function well. For this reason, we have encouraged our team to find a designated workspace within their home. While not all of us have the luxury of a discreet ‘home office’, setting a specific space on the kitchen or dining table offers a structured place to ‘set up station’. If you shift to working from the couch or bed, you’ll quickly associate those spots with work. Our Workplace Risk team recently hosted a webinar on workspace safety and working ergonomically, complete with a ‘working from home’ checklist. Give it a shot.


2. Write a daily routine

Working in an office means you benefit from a tacit structure or sequence to the day. In psychology, this is called an ‘initiation’ sequence – it gets the brain ready to focus. Having a simple start-up routine, such as sitting in the same spot, checking your emails, saying ‘hi’ to your team over chat, signals the beginning of your day. 

Similarly, we have kept our usual company check-ins and meetings consistent in the calendar, yet fluid in their delivery. Just as they would in the office, our team meetings and briefings are attended with rigour and respect. We are also encouraging our people to take regular breaks, ‘rise and recharge’, and even join us for a weekly virtual HIIT session.


3. Staying accountable and connected

It’s only human to struggle with accountability when working remotely. It can be difficult to demonstrate our output, or even convey our emotional state when not in the physical presence of others. At times, isolation can hit us in ways we don’t expect. Grief might kick us in the guts one day, and nothing but smiles the next. That’s why checking in with your colleagues is so important. Just because your workmate was great today, it may not be the case tomorrow. At Honan, we’ve implemented a Buddy Program to ensure all staff have someone to reach out to with the good, the bad or the ugly – day in, day out.

Recognition is equally important when working remotely. At Honan, we’re fortunate to have a leadership team with a well-oiled practise of congratulating, and thanking colleagues for great work. The simple act of celebrating the wins and recognising the accomplishments of your subordinates goes a long way. It can turn their day around, galvanise their faith in the business, and mobilise energies for future efforts.  


4. Time for tools down 

Social connection is extra welcome through times like these. We’ve been using the lightness of laughter to wrap up each week with a company-wide Zoom meeting. This ‘tools down’ ritual has quickly become a weekly highlight, and brought us closer together than ever. Whether it’s a ‘power up’ or ‘tools down’ initiative, brand rituals are a simple but powerful way to maintain motivation and connectedness amongst your people. Our Friday afternoon sessions are also our time to announce the winners of our weekly working from home contests; which have ranged from creative rounds of charades, to promoting each other’s wellness activities.  


We’re with you all the way

As always, we’re here to listen, advise and support you through this time. To further support you and your people through #iso, here’s a few of our recommended resources:


Australian Psychological Society – Tips for Coping with Coronavirus Anxiety

Gallup – How to Keep Remote Worker Wellbeing High

Gartner – 9 Tips for Managing Remote Employees


COVID-19: Tips for Remote Working, Cyber Security and Avoiding Email Scams

By Dominic Brettell
Head of Client Service (NSW) – Corporate Insurance & Risk Solutions

When a crisis hits, it can bring out the best in humanity. This was evident during Australia’s recent bushfire crisis, where people from around the nation (and the world) came together to support communities.  Unfortunately, crises can also bring out the worst, where people see opportunities to exploit people’s anxiety, fear and panic.

The COVID-19 pandemic has countries and governments scrambling to respond. The healthcare system is being pushed and our economy is suffering. There are significant changes to how and where we work. It’s predicted many businesses will face solvency issues, which may lead to closures, especially to the most vulnerable small to medium business sector, the lifeblood of Australian communities.

A growing number of employers are implementing social distancing and/or remote working policies. Moving at short notice from a trusted office environment to working remotely can create security risks. Our experience tells us that employees are typically the weakest link in the network security chain. In these times of anxiety and uncertainty, they are even more vulnerable than usual to cyber threats. At Honan, we have already witnessed increased activity from cyber criminals looking to exploit the crisis. We have seen a rise in email scams, phishing emails, malware and social engineering fraud.In response, we’d like to share with you some guidance on enhancing your cyber security.


Eight ideas for improved cyber security for remote workers:

  1. Implement the latest version of your security software and anti-virus protection. Regularly check for patches as these often fix entry points for cyber criminals
  2. Ensure your WiFi connection is secure
  3. Back up regularly – if you are a target of an attack, a back up means you won’t lose everything
  4. Install encryption tools
  5. Change your password regularly
  6. If working in a shared space, ensure you lock your screen when stepping away
  7. What’s the plan? – If there is a cyber security incident what are the procedures to follow? Educate staff on these procedures
  8. Cyber Insurance – review your Cyber insurance policy or consider purchasing one.


We have gathered some additional resources to help you protect against cyber risks in the current climate:

  • The Australian Cyber Security Centre has provided a list of proactive strategies businesses can take in preparation for COVID-19.
  • Mailguard, a leading cloud email security provider, has produced an eBook detailing the          5 Types of Email Scams Exploiting COVID-19
  • Small Business Cyber Security Guide from The Australian Cyber Security Centre



For any further queries or concerns, please contact: 

Dominic Brettell

Head of Client Service (NSW) – Corporate Insurance & Risk Solutions.


COVID-19: Business Interruption, Contingency and Workplace Risk


On 30 January 2020, the World Health Organisation declared the Coronavirus outbreak a Public Health Emergency of International Concern. We sympathise with everyone who has been impacted by the virus and Honan Insurance Group have implemented additional resources and contingency planning to ensure that we remain able to provide advice, insurance and support to our clients as the situation develops.


As the impact of COVID-19 on local and international economies continues to evolve, we highlight to all clients the need for management to consider financial, strategic and business risks to operations. In this article, we examine the key areas we have received the most queries about: Property and Business Interruption, Business Contingency and Workplace Risk.


Industrial Special Risks* (Property and Business Interruption) Insurance & COVID-19 

(Potential Policy Response under ISR Mark IV Policy)

It is expected that many businesses will suffer disruption as a result of the spread of the Coronavirus (COVID-19).   With the situation changing rapidly and restrictions on the movement and gathering of people (both at local level and internationally), there is no doubt many companies will suffer from loss of revenue and/or additional expense.


Property Damage

Generally, property policies (including office risks) cover physical loss, destruction or damage to insured property resulting from a covered peril (all risks).  In the case of the Coronavirus, the ISR (Mark IV) policy exclusion 4(a) excludes physical loss destruction or damage occasioned by or happening through disease.  Office-related risks also have very similar exclusions. The ISR policy can include a myriad of endorsements with some coverage writebacks for costs to clean-up a site (where required by order of a public authority), however, this would need to be reviewed on a case by case basis.


Business Interruption

An ISR insurance policy extends to include under Section 2 coverage for business interruption.  This cover traditionally applies only to interruption caused by an insured material damage event such as fire, storm, impact or accidental damage.

In addition, cover is extended to include closure of the business by public authority for several risks including human infectious or contagious diseases.   This coverage was designed to cover events such as an outbreak of Legionnaires disease or measles which could affect one or two buildings and a small number of businesses.  Some ISR policies can extend to provide coverage for outbreaks in a 20-50km radius from the insured location.

Specifically, in relation to the COVID-19 outbreak, the ISR policy contains a specific exclusion for loss resulting from interruption of or interference directly or indirectly arising from or in connection with Highly Pathogenic Avian Influenza in Humans or any other diseases declared to be quarantinable diseases under the Quarantine Act 1908 and subsequent amendments.

Following the H5N1 virus (avian influenza) outbreak in 2006 and the H1N1 virus (swine influenza) outbreak in 2009, insurers adopted this exclusion as a market standard position in Australia.

The Australian Quarantine Act 1908 was replaced by the Biosecurity (Consequential Amendments and Transitional Provisions) Act in 2015.  COVID-19 was added to the Act as a listed (quarantinable) human disease on 21 January 2020, under Biosecurity (Listed Human Diseases) Amendment Determination 2020 (Cth) F2020L00037.


Listed Human Diseases under the Act are thus now:

  • Human influenza with pandemic potential
  • Plague
  • Severe acute respiratory syndrome (SARS)
  • Middle East respiratory syndrome
  • Smallpox
  • Viral haemorrhagic fevers
  • Yellow Fever
  • Human Coronavirus with pandemic potential

As a result of the above, the business interruption section of your insurance will not provide cover for COVID-19 disruptions. As with any other threat it is important to consider what risk management measures you can introduce to mitigate the risk to your staff, customers and business.


Risk Management Tips: How to avoid infection

Here is a short list of ways to minimise the spread of Coronavirus

  • Practice good personal hygiene.
  • Avoid contact with anyone with or suspected of having Coronavirus.
  • Boost your immune system by eating well, exercising, having enough sleep, and keeping your stress levels under control.
  • Cancel or delay any travel until the crisis is over.


Recommended Actions for your organisation:

  • Implement a home quarantine regime for anyone that has travelled to an infected country or is likely to have been in contact with someone infected with Coronavirus.
  • Review and update if necessary human resource (‘HR’) policies on fitness for work including possible quarantining of employees and formalising the requirement for employees to remain off work if affected.
  • Consider or extending flexible working arrangements to reduce the likelihood of the spread of the virus in the workplace or the community.
  • Update travel rules and arrangements limiting non-essential business travel.
  • If not already in place, provide sanitized hand washing stations for use by staff and visitors.
  • Review arrangements for workplace hygiene and cleaning protocols including “cough and sneeze” etiquette.
  • Protect the mental wellbeing of employees concerned about the Coronavirus.
  • Ensure clear and honest communication to employees on their welfare.


Keep Informed

Everyone should remain alert for updates and advice from the relevant authorities on additional steps to manage the spread of the disease. The health department in each state is providing excellent resources and advice and regular updates. Before travelling, check for and take the advice of any travel warnings on smartraveller.gov.au.


Business Continuity Management Planning

A pandemic is just one risk facing modern organisations.   Having a fully documented and exercised business continuity management plan is important for every business.  Honan has resources to assist you in developing a business continuity plan and please speak to your Client Manager for further information.

*Property/Office/Business Interruption


Business Contingency

The Coronavirus may impact revenue for businesses through:

  • Production slowdown & disruption to workforce (sick or quarantined employees)
  • Disruption to Supply chains and supplier services
  • Decrease (or increase) in demand for stock
  • Large scale closures of consumer markets and public spaces due to quarantine
  • Delays in customers paying outstanding invoices within normal trading terms
  • Economic slowdown on global and local scale


Whilst there is coverage available under Corporate and Business Travel insurance policies in certain circumstances, there is limited cover available under most standard General Insurance policies for loss of trade and interruption to business operations.

As a general rule, it is not viable for most insurance markets and products to cover “global pandemics” as an insurable event. This is because the financial impacts of a pandemic are not quantifiable, meaning risk cannot be priced accurately or sustainably by insurers. If you do suffer a loss, please contact our team to discuss the specific circumstances and how your policy may respond.

Whilst insurance cover availability may be limited, businesses can prepare.  We would strongly recommend formation of a working committee to evaluate the impact to business as conditions continue to evolve, with accountability to the board or executive team.


Considerations for a COVID-19 working group should include:

  • Review of policies, procedures and protocols in place to protect the safety and wellbeing of employees and prevent further risk of spread of COVID-19 within the workforce and community.
  • Assess venerability of IT Infrastructure (including stress-testing) for an organisation’s ‘Work from Home’ capabilities in the event of premises closure/staff quarantine
  • Consider the impact on supplier and customer contracts to meet delivery/service obligations from both parties (how Contractual Penalties & Force Majeure clauses may be applied)
  • Evaluation of possible supply chain disruptions and how these can be mitigated or bypassed through appropriate work arounds and contingency planning
  • Evaluation and stress testing of stock levels and planning for inventory shortage as supply from China recommences operations
  • Review ability to support alternative revenue streams that are not as severely impacted by COVID-19
  • Review communications with key customers and other stakeholders to maintain relationships and manage challenges in a sensible, commercial & collaborative manner
  • Review credit and debt facilities to ensure that cash is available in the short term to manage financial impacts and support increased business restart
  • Communicate with creditors if a reduction in revenue has the potential to impact on cash flow and financial obligations.



Workplace Risk: Workers’ Compensation and Coronavirus (COVID-19)

There has been much discussion around the exposure and potential liability under Workers’ Compensation should an employee or contractor contract Coronavirus.

As outlined by Safe Work Australia (2020), Workers’ Compensation arrangements differ across schemes, however there are common threshold requirements that would apply in the case of COVID-19:

  • that the worker is covered by the scheme, either as an employee or a deemed worker
  • that they have an injury, illness or disease of a kind covered by the scheme, and
  • that their injury, illness or disease arose out of, or in the course of, their employment.

Compared to work-related injuries, it is difficult to prove that a disease was contracted in, or caused by particular employment. In the case of a virus such as COVID-19, establishing the time and place of contraction may become increasingly hard. We have sought clarity from our legal partners and obtained publications from the governing state regulators. Their view is it will be challenging to prove workplace exposure to Coronavirus as questions will arise as to the exact time and place of contraction.

For coverage to exist, a determining authority would need to be satisfied that the employment significantly contributed to the employee contracting the virus. For viruses, it can be difficult to accurately determine the exact time and place of transmission. As a result, it may be difficult to determine that employment significantly contributed to the virus.

However, where an employee’s employment puts them at greater risk of contracting the virus the significant contribution test may be easier to meet. For example, if the employment involves:

  • travel to an area with a known viral outbreak
  • activities that include engagement or interaction with people who have contracted the virus
  • activities that contravene Department of Health recommendations.

Each workplace illness would need to be considered on its individual merits, having regard to the individual circumstances and evidence in relation to the claim. More information is available here: Comcare Australia.

Deeming an illness or disease as work related and unique to the workplace may require court intervention to distinguish medical opinion from legal facts. There is no liability determination available to declare an illness or disease compensable or non-compensable; each case is determined on its own merits and circumstances.

Although you may not be able to eliminate the potential risk of employees contracting Coronavirus while carrying out work, you must do what is reasonably practicable to minimise the risk of employees contracting Coronavirus.


Coverage while travelling overseas for work

Any liability or workplace contribution applies to both employees working overseas and those working within Australia. Each case will be determined on its own merits and circumstances.

Note: For international employees engaged locally, state or country specific legislative conditions will apply. Queries should be directed to Honan. Depending on the state of urgency, travel restrictions and periods of self-isolation may need to be considered and communicated to all employees and contractors.


Employer Support

It is important that employers refer to internal policies and procedures to ensure measures for employee safety are in place. Honan has resources to actively advise on Workplace Risk exposure, as well as Legal and Work Health and Safety partners who can assist with ongoing management of this changing environment.


All companies will need to keep up to date in what is evolving environment.  Please see below some resources to do so:

Australian Government Department of Health

Safe Work Australia


McKinsey & Company have released a briefing paper (9th March 2020) which provides some insight into possible global economic impact as well as some common steps that can/need to be taken in preparation for businesses being affected and the formation of a working group: link here.

For any additional queries or concerns, please contact your Honan client manager.


*Property/Office/Business Interruption

The advice in this paper is general in nature. While the utmost care has been taken in the preparation of this preliminary advice or opinion, you use it at your own risk.

If you have difficulty reading and/or understanding the cover provided in the policy(ies) that you have please contact your Client Manager.

Leader’s Insight: Health & Wellbeing Within the Workplace

Employee Benefits

By Jaime Asher, VP Global Honan Insurance Group.

Organisations are only as good as their people.  This is why wellness is now such a hot topic globally.  It is becoming more apparent than ever that this is an extremely important driver of organisation workforce strategy to enable employers to provide a unique employment offering.  When we consider approximately one-third of adult life is spent at work, it becomes an even more important factor.  When we talk about wellness, we are encompassing physical, mental and social wellness.


“Approximately one-third of adult life is spent at work.”


Wellness programs are common practice in the US and Europe and have been for a number of years, but this concept is now growing in popularity in the Asia Pacific region.  We are noticing a cultural shift gradually occurring in Australia with employers, health system payers and individuals now recognising the benefit of the workplace as a setting for optimising physical, psychological and social health.


The Price of Chronic Disease in the Australian Workforce


Approximately 33 per cent of working Australians between 25 and 64 years old (around 3.4 million people) reported having at least one of eight selected chronic diseases – arthritis, asthma, coronary heart disease (CHD), chronic obstructive pulmonary disease (COPD), depression, diabetes, osteoporosis or cerebrovascular disease.




Additionally, the IHW 2010 Risk Factors and Participation in Work report found that 96 per cent of working age Australians had at least one chronic disease risk factor and 72 per cent of working-age Australians had multiple risk factors.

Australian employers bear many of the indirect costs associated with chronic disease and ill health. For example, the estimated cost of absenteeism to the Australian economy is $7 billion each year, with the cost of presenteeism (not fully functioning at work because of medical conditions) being nearly four times more at almost $26 billion.




It is now recognised that effective employee wellness can be linked to effective business performance including the promotion of innovation, employee engagement, talent attraction and retention.

Wellness programs can fall within a large spectrum, with employers offering anything from healthy snacks supplied in the workplace to a Full Population Health Management program. It can sometimes be a little difficult to quantify the benefits of having a Wellness Program in place, therefore Honan will work closely with the client to tailor a program that will ensure the wellness strategy, associated deliverables and employee engagement are measureable, meaningful and deliver to specific strategic business aims.

The different types of Wellness plans can come from a number of different offerings from Employer owned to a fully-integrated model.




Further examples:
  • Offering healthy snacks and drinks including fruit delivery
  • Discount to local gyms
  • Subsidised local gyms membership
  • Walking programs (employees receive a pedometers and track their daily steps)
  • Bike programs
  • Biometric and Health checkups, this can also include dental and vision screening
  • Onsite fitness classes
  • Onsite cooking classes
  • Nutritional advice
  • Tobacco cessation
  • Stress management
  • Standing desks
  • Incentive based health premium schedule
  • Flu Shots
  • Massage services

One of the newest concepts we’ve recently seen as an offering in China is an “iBenefits” type function offering employees a “virtual credit point” granting and redemption platform to recognise and reward employees on their individual performance.  This is not a common offering to date and never been see in Australia, but this is an example of how tailored programs can really be.


The Role of the Broker:


Except for the most basic of Wellness programs, clients will rely and expect their Employee Benefit Broker to administer their programs including setting up related training to their staff.  The Broker is responsible for implementing a suitable program tailored to the clients needs, ensuring the employees receive knowledge and a clear understanding of the program.  The Broker will work with employees to maximise their own benefit from the program.

As a unique offering, some Insurance Brokers may partner with a Global Wellness vendor who can manage an employer’s Wellness program at multiple locations around the globe.  This can include wellness “coaching” where wellness plans can be designed for each individual in each region/country.






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