At Adult Industry Business Insurance (AIBI) and Eros, we continue to get questions on the subject of insurance. This article answers some recent questions and reminds people about Property Insurance for the Adult Industry.
AIBI is your Adult Industry insurance specialist and is well accustomed to arranging insurance for all areas of the industry from individual sex workers to chains of adult book stores.
Nobody expects to suffer from a loss and most people significantly underestimate the wide-ranging challenges you face if something serious happens to your business.
We understand that insurance is not a priority for many business owners but that their business is. The right insurance will protect your business and livelihood if something serious happens, so it pays to spend enough time to understand what you are and are not covered for.
Insurance questions you’ve been asking
Eros members have recently asked these insurance related questions – here are our straight-talking answers:
Are massage parlours covered if they also carry out illegal brothel operations?
In short, no. They would also not be covered for their standard massage operations either. More broadly, if any of your operations are illegal, or even not disclosed, this can void all insurance claims. Always reveal the full extent of your activities, so we can make sure your insurance will protect you.
Can insurers force me to sell off items after water damage?
Insurers are within their rights to try and reclaim as much money as they can following an event to reduce the size of your loss, while making sure you receive what you are entitled to. If you feel this contradicts any health and safety legislation, then make sure you tell them formally and in writing. Also, if you feel it may harm your brand, you can ask them to sell them separate from your business.
I’ve started using Afterpay – do I need additional insurance?
There are a range of credit insurances available to protect companies for non-payment of invoices. However, typically these have pretty large excesses and are hard to obtain for the adult industry.
With Afterpay itself, the system clearly states there is zero fraud or credit risk as Afterpay assumes all end-customer non-payment risk for every single transaction, so you should be okay. As ever,
contact us regarding your specific circumstances and we’ll give you a straight answer.
As insurance brokers, AIBI, will stand by you in the event you need to make a claim. We work with
you and the insurer to make sure you get a fair settlement.
5 things you need to know about Adult Industry Property Insurance
Here are 5 of the main things you need to know about Property insurance for Adult Industry organisations
- Buildings cover includes landlord’s fixtures & fittings, fences and even underground pipes and services within your property – but not living creatures!
- Contents cover includes computer systems, machinery and in some cases, goods sold but not yet delivered, but does not include your client’s possessions – and losing or damaging them
will harm your reputation. Some policies do require you to specify Stock so you must review all documentation.
- Do you have leased or hired machines? Check your contracts in case you are liable for damage to them as they won’t be insured on your policy, unless you specifically add them.
- Most fires are caused as a result of electrical faults and appliances. You should ensure these are checked regularly by an authorised tag and test company or your electrician.
- Regular procedures around property maintenance, security and using thermograph reports to check electrics are great ways to prevent you having a loss.
Most businesses buy a ‘business pack’ type policy that can include buildings, contents and stock cover. If you are a tenant insuring the building on behalf of a landlord, you should always obtain
written approval of the sum insured as in the event of under-insurance or a shortfall you may be liable for this amount.
If you insure your property against fire and other perils, we advise you protect your income with Business Interruption insurance too? This can protect your income for a nominated indemnity
period, typically between 12 months and two years to help you rebuild your business not just the physical property.
AIBI and Eros have worked together for many years to provide insurance support to the adult industry. We understand insurance may not be your top priority. That’s why we do our best to get
you the right insurance at the right cover as quickly and painlessly as possible.
If you have any questions, then contact us on 1300 558 158 or at firstname.lastname@example.org and we’ll be there to help with straight-talking – guaranteed.