An essential aspect of conducting business in the bilateral environment is to be aware of the legal business environment and culture and to take a risk-based approach to mitigate potential legal risks. With New South Wales being the 2nd most litigious region behind California in the USA*, a closer look at legal risks when operating in Australia could be warranted.
AHK Australien's Executive Director, Christoph von Spesshardt, recently spoke with ARAG Australia's COO, Antoinette von Wendt, to shed some light on this topic.
Christoph von Spesshardt:
"It looks like ARAG's expansion to Australia was an obvious move, given the litigation culture here? I understand ARAG has recently also strengthened its commitment to the Australian market by appointing a local CEO in Natasha Gale. In your view, do you think businesses in Germany are aware of the different legal culture over here?"
Antoinette von Wendt:
"ARAG is a German-based, family-owned enterprise already operating in 19 countries. Our intent has always been to set up an entirely local based team. The business has established itself to the point where the global strategy of employing local leadership teams is fully integrated. Education and awareness are key to the success of ARAG in Australia. I hope that an interview like today's will raise awareness for the critical legal considerations when planning to operate abroad."
Christoph von Spesshardt:
"What would you like to tell German businesses that consider operating in Australia?"
Antoinette von Wendt:
"I would like to advise them to seek expert legal advice from providers who have their feet in both cultures, so to speak. Understand the legal environment you are venturing into, and consider protecting yourself against legal risks, just as you would in your home country. Fact is, people in Europe have Legal Expense Insurance (LEI) like we in Australia have Health Insurance **."
Christoph von Spesshardt:
"What is legal expense insurance?"
Antoinette von Wendt:
"LEI provides coverage and protection for the costs associated with all insured events that may result in a pursuit or defence action against you, or by you, for matters such as, but not limited to;
- Criminal Prosecution &WHS Investigations
- Residential landlord cover
- Employment disputes
- Financial Loss
- Damage Property disputes
- Contract disputes
LEI cover provides access to specialist legal experts for insured events, including access to a dedicated helpline and legal document centre for both private and commercial matters."
Christoph von Spesshardt:
"So, it also covers businesses in the unfortunate event they should get sued?"
Antoinette von Wendt:
"Yes. More importantly though is LEI provides affordable access to legal advice and representation when individuals or businesses are faced with unforeseen legal issues regardless of the instigator. Without it, they might otherwise not have the resources to exercise their legal rights due to the crippling cost. There is no predicting when it will actually be needed.
Christoph von Spesshardt:
"Thank you for outlining this for our members. Where can our members learn more?"
Details on where to learn more:
www.arag.com.au or
contact(at)arag.com.au
*Insurance World 07/09/2016
** more than 1 in 3 Germans, Austrians and Dutch have LEI (SOURCE: ARAG internal statistics)
***see product disclosure