Insurance coverage review – stock, work in progress and customer goods

Insurance coverage review – stock, work in progress and customer goods

A message from KBDi Insurance Partner, Cabinet Makers Insurance Brokers
 
With COVID-19 lockdowns and restrictions slowing or preventing installations, it has become apparent that many cabinetmaking businesses are holding increased volumes of stock, work in progress cabinetry combined with customers appliances awaiting installation and is potentially ballooning the value of insured stock that is typically held in their Business Premises.
 
Accordingly, it is imperative that cabinetmakers urgently review their current policies and requirements to ensure adequate coverage will exist if a loss is incurred. 
 

Risk Management associated with excessive storage should also be addressed. Manufacturers should consider: 

  • How the goods are being stored – fire can spread quickly with congestion, and warehouse managers should ensure goods are stored in designated areas of the factory away from flammables and other ignition sources.
  • Goods stored at increased heights can pose a falling risk and potentially injure employees or others.
  • If factories are left unoccupied for long periods of time, valuable items such as customers’ goods should be stored away from entry points and secured if possible. Alarm systems, security gates and windows should be checked to ensure reliability in case of break-in and theft.
 
Cabinet Makers Insurance Brokers strongly encourage KBDi Members to assess their risks and revisit their coverage today. To learn more about their policies and levels of cover, contact Cabinet Makers Insurance Brokers here.
The Ins and Outs of Insurance

The Ins and Outs of Insurance

Tuesday | 28 September 2021 | 4 pm AEST

In this videoconference, we’ll be joined by KBDi Partner, Cabinet Makers Insurance Brokers (CMIB). You’ll learn about the difference between professional liability and public liability insurance, and get a greater understanding of what may or may not fall under your policy cover. We encourage you to pre-submit your questions for this informative session (use the comment field in the registration form), and we’ll do our best to get an A to your Q.

Register

Strategies for staying strong

Strategies for staying strong

Tuesday | 14 September 2021 | 4 pm AEST

Life is full of challenges at the best of times: throw in a virus, some fear, a bunch of rules and restrictions and a tonne of uncertainty, and we can find that our boundaries are really stretched.

We know that some of our members are struggling, and others have been practising some great survival strategies. In this ‘Touch Base Tuesday’ session, we’ll share some of our own tried and trusted techniques for staying sane (or strong). And if you’ve got some tips and tricks for keeping your head above water, managing an unpredictable schedule or dealing with isolation, we’re keen to hear them, too.

Remember places are limited and reserved for KBDi financial members and partners only. Register today to secure your spot.

Register

Event registrations have now closed.

Legal membership offer for KBDi Members

Legal membership offer for KBDi Members

Members enjoyed an entertaining and informative Legal Q & A session with our legal partner, Sprintlaw, on Tuesday afternoon. Sprintlaw Co-founder, Alex Solo, recapped and expanded his advice on referral partnerships and discussed a range of other topics relevant to k and b designers. From IP to PI, members were given some invaluable reminders about the small steps we can take to avoid more significant business headaches.

And in a much-appreciated move of support, the innovative, online law firm increased their discounts to all KBDi Members from 5% to 10% on any first fixed-fee legal project undertaken with Sprintlaw.

Additionally, they’ve offered a substantially discounted first-year rate for their new initiative – Sprintlaw Membership.

As a Sprintlaw Member, you’ll be entitled to unlimited 30-minute phone consultations with Sprintlaw lawyers (subject to a fair use policy), free updates to any documents they’ve prepared for you and a 15% discount on any further fixed-fee legal services for the very affordable rate of $599 + GST/year (a saving of $200). (Offer valid until the end of September 2021.)

(Please note that discounts do not apply to government fees or excluded services Sprintlaw can’t offer.)

If you’d like to learn more about this offer, complete the form below, and we’ll facilitate an introduction.

Expression of Interest: Sprintlaw Membership and Legal Services

Legal Q and A with Sprintlaw

Legal Q and A with Sprintlaw

Tuesday | 24 August 2021 | 4 pm AEST

In a continuation of our informal conversations series, we’ve invited Alex Solo, co-founder of Sprintlaw, to join us for a legal Q and A. Alex will explain the pitfalls of referral partnerships, and set out how you can minimise the risks of any arrangements you’re making with designers and trades. And while we’ve got him on the clock, he’ll do his best to answer any pre-submitted business-related questions you have. Submit your question in the registration form below, and if you’re in the Zoom Room on Tuesday afternoon, we’ll see if we can line up an answer.

(Note: places are limited and reserved for KBDi financial members and partners only. Register today to secure your spot.)

Register

Event registrations have now closed.

Avoiding the pitfalls of referral partnerships

Avoiding the pitfalls of referral partnerships

During our recent videoconference discussion about fees, members raised a few questions about the disclosure and legal risks of referral fees. 
 
For KBDi members, these fees are generally associated with partnerships between designers and cabinetmakers. That is, when a designer successfully connects a client and cabinetmaker, the cabinetmaker may pay the designer a referral fee.
 
We approached our legal partners, Sprintlaw, with these questions, and they offered the following advice.
 
This information is intended by Sprintlaw to provide general information and may not be comprehensive or cover all potential areas of legal risk for your business. It is not to be interpreted or relied on as professional legal advice, and we encourage you to contact Sprintlaw and seek professional advice if these matters are relevant to you.
 
Referral Partnerships
 
In short, it is generally acceptable for members to have referral partnerships. I.e. where designers refer work to cabinetmakers and, in return, receive a referral fee.
 
There are a few legal risks to be aware of with referral partnerships:
 
  • If the partner (e.g. cabinetmaker) provides poor service to the client, the designer could be liable for making a negligent referral.
  • If the referral fee is not disclosed to the client, this could be argued to be misleading and deceptive conduct under Australian Consumer Law.
  • The partner may not pay the referral fees or not accurately disclose or track the referrals that are payable.
To reduce these risks, best practice is to follow these steps (again using the designer/cabinetmaker example):
 
  • The designer should have a Referral Agreement in place with the cabinetmaker, stating that the cabinetmaker will protect the designer from any liability resulting from poor service by the cabinetmaker and be obliged to track and pay the referral fees accurately.
  • The designer should include a simple disclosure statement to the client (e.g. over email) when making the referral, informing them of the referral partnership and commission and stating that the designer will receive a commission or benefit.
  • The designer should include a referral disclaimer clause in the client contract terms and conditions, stating they will not be liable for any issues with referred services.
 
Sprintlaw have written a couple of short articles on Referral Agreements here and here. They are, of course, happy to assist KBDi members in setting this documentation up where required. If you’d like an introduction, email s.zwolsman@kbdi.org.au today.
 
What about Referral Selling?
 
Referral Selling is a practice where, for example, a client is told they will only get a discount on their product or service if they refer people and those people also buy that product or service.  For example, if a designer said to a client:
 
“I’ll refund 25% of your fees if you refer me to three friends who buy my services.”
 
This is where you are inducing a client to buy your services at a ‘discount’ which is dependent on something outside their control. This practice is unlawful under the Australian Consumer Laws and can result in fines.  
 
There are some clear examples of referral selling and other unlawful selling techniques which you can read about here.
 
Note: 

In a continuation of our informal conversations series, we’ve invited Alex Solo, co-founder of Sprintlaw, to join us for a legal Q and A. Alex will expand upon the above, and while we’ve got him on the clock, he’ll do his best to answer any pre-submitted business-related questions you have. Submit your question in the registration form below, and if you’re in the Zoom Room on Tuesday afternoon, we’ll see if we can line up an answer. Places are limited and reserved for KBDi financial members and partners only. Register here to secure your spot.