Machinery Matters: Why Your Business Needs Plant and Equipment Insurance

Plant and equipment insurance is vital for businesses that utilise heavy machinery and complex equipment in their operations. This specialised form of insurance safeguards against a wide range of risks, providing essential financial protection and supporting business continuity. Here’s a more detailed look at why this insurance is critical:

Continue reading Machinery Matters: Why Your Business Needs Plant and Equipment Insurance


Insurance rebuilding Valuations essential for home or commercial buildings

All property insurance policies, such as farm, business, home and strata insurance policies, require the sum insured (declared value) to be the current cost of replacing the home, shop or factory when the policy is taken out or renewed.
Inflation and increased material and labour costs over the past two years have increased average rebuilding costs by up to 30%.

 

So, we’ve arranged with a national Quantity Surveying firm to provide expert rebuilding cost reports from $660 for homes and small commercial properties in major cities. Valuations can also be arranged for Plant & Equipment.

The insurance rebuilding valuation report can then be given to your insurance adviser and insurer to ensure the right level of cover is in place, giving you peace of mind.

 

Benefit – Right amount of Cover & Peace of Mind

The insurance rebuilding valuation report is prepared by MCG Quantity Surveyors, a licenced professional firm that is an expert in construction costs.

The report will state the amount to rebuild or replace the premises, taking into account the latest building codes, location, construction type and cost of removal of debris.

We will then ensure the right amount of cover, based on the actual cost to rebuild or replace your home, commercial building or investment property.

 

Under-insurance and impact on Claim payments

What happens if the insurance cover or sum insured is not enough to rebuild?

All property insurance policies, including farm, business, home and strata insurance policies, require the sum insured (declared value) when taking out insurance or renewing the policy to be the current cost of replacing the building, home, shop or factory.

Not having enough cover to rebuild or undertake major repairs can cause major delays to repairs or rebuilding, as well as have serious financial consequences.

For example, a factory and contents are insured for $700,000, however the rebuilding value is found to be $1 Million at the time of the fire. In this case, the insurer is likely to apply an underinsurance (also known as an average) clause, which all property policies include.

Not only would this likely delay repairs or rebuilding, but the claim settlement would also only be $612,500 (in this example), leaving a large shortfall in the $1 Million rebuilding costs.

As property rebuilding costs change, so should the amount of your insurance cover.

 

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs. This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

 

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

 


Insurance Policies and Your Duty of Disclosure

Insurance Policies and Your Duty of Disclosure

It’s important to know that insurance underwriters need full information about the risk to be insured, along with your prior insurance history and some personal information, such as if you have criminal convictions, licence suspensions etc. If the information provided is inaccurate or incomplete, this can lead to claims being delayed or worse. 

Once all the information has been disclosed to the underwriter, they can assess your risks and decide whether the policy is appropriate or not for you. Also, calculate the premium and terms of cover. 

The requirement to provide full information is a legal requirement. It is referred to as either the duty of disclosure for commercial insurance policies (i.e. Professional Indemnity, Management Liability Contract Works) or duty not to misrepresent consumer insurance policies (i.e. home, motor vehicle, travel insurance). 

When does the duty apply? 

Both the Duty of Disclosure and the new Duty for Consumers are part of the Insurance Contracts Act, which is the primary law that sets the standards for both buyers of insurance and insurers. The law aims to ensure fairness and protect the rights of consumers.  The law also states that the Insurer and customer must act in the Utmost Good Faith. That is, act honestly, fairly and transparently. 

Depending on the type of insurance and the reason it is purchased, one of the following duties will apply when:

Taking out new insurance

Completing a proposal form, declaration or questionnaire and asked to answer questions on behalf of other people who are also insured by the policy. So, you’ll have to ask these people the same questions and provide their answers to the insurer to ensure you have the correct insurance. 

For example, if there are other regular drivers of your car or truck, you also need to ask them if they have had speeding fines or lost their licence due to a PCA or DUI charge and tell the insurer.

Changing or renewing your insurance

If you renew or ask for an extension of the policy period, request any change, or add cover, you have to advise the underwriter (or your insurance adviser) if there have been any changes to the answers of information previously provided to the insurer.  

If you are still determining which duty applies to you, talk to your insurance adviser. 

Below is a detailed look at each of the duties when they apply and the consequences when not complied with.

Duty of Disclosure – Commercial & Business clients (not Consumers)

Commercial businesses or premises are complex, with lots of risk factors underwriters have to consider. All underwriters have limits or what they can accept, such as the size of the company, sums insured, location, occupation, building construction or prior claims history. 

To make an informed decision about the cover and premium to be quoted or whether to provide any terms, the underwriter needs complete information about you and the risk to be insured. 

For this reason, you have a legal duty to disclose every matter that you know or would be expected to know that may be relevant to the insurer’s decision as to whether to accept the risk and on what terms the insurance is quoted. So, if you own a building but haven’t checked it for a long period, it would be difficult to answer a question on a proposal from ‘Is the premises in good repair and condition’. Insurers would expect you to know, not guess, before filling out the proposal form. This also applies when answering applications, questionnaires, or declaration questions.

Answers must also be truthful, with complete answers and transparent information. Partial answers or misinformation are often the same as being untruthful. 

Important matters to be disclosed depend on the type of insurance policy. These include for at least five years, the previous claims (insured and uninsured) and incident history. Directors’ personal history of criminal offences and convictions, bankruptcy or liquidation of a company, refusal, or declinature of insurance or claims.  If you’re unsure, talk to your insurance adviser.

You do not have to disclose anything that:

  • reduces the risk to be undertaken by the insurer (i.e. you have a better alarm that the insurer requires);
  • is common knowledge (i.e., in the newspaper, TV);
  • your insurer knows, or in the ordinary course of its business, ought to know (i.e. Cold Storage facilities have walls made of EPS, car dealers sell cars); or
  • if the insurer has waived your obligation to disclose (i.e. you have told the insurer your service truck and they don’t ask for more details).

Again, if you’re unsure what must be disclosed, talk to your insurance adviser.

Consequences of Non-Disclosure

Non-disclosure is usually discovered at the time of claiming, by claims officers, assessors or adjusters. 

If there has been non-disclosure by you or someone covered by the insurance policy, it will at least delay your claim and any settlement until it is investigated. 

Depending on the type of non-disclosure, your insurer may be legally entitled to reduce the amount of the claim settlement or not pay any of the claim, and in some cases, is legally allowed to cancel your insurance policy.

If any part of the non-disclosure was fraudulent, the insurer might be able to cancel the policy from the start date, so in effect, you were never insured and have no right to be covered for the loss or damage. 

Consumer Duty – to take Reasonable Care not to make a Misrepresentation and be Truthful when answering questions

From October 2021, a new Consumer Insurance duty applied to insurance policies used for personal and domestic purposes, such as car, home, boat and travel insurance.

For Consumer insurance policies, insurers can no longer ask ‘catch all’ type questions, such as ‘you must tell us anything that you know or should reasonably know to be relevant’ (this still applies to commercial risks). 

Insurers are now required to ask questions on which they will base their decision to provide a quotation (or not) and the premium and terms. 

Therefore, if you take reasonable care to answer the underwriting questions fully to the best of Your knowledge, accurately and truthfully, the insurer can no longer say there was non-disclosure or misrepresentation.  

Misrepresentation includes a statement that is false, partially false, or which does not fairly reflect the truth. The responsibility to take reasonable care not to make a misrepresentation applies to everyone who will be insured under the Policy. If You are answering questions on behalf of anyone else, the insurer will treat Your answers or representations as being from all persons to be insured under the policy.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs. This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

 


How your operations impact Workers’ Compensation insurance premiums 

How your operations impact Workers’ Compensation insurance premiums

How your operations impact Workers’ Compensation insurance premiums

Insurance companies charge an amount of money for each policy, called the premium, which is based on a set of rating factors that take into account your business operations, the industry and prior claims history.

In this blog post, we will explore how these affect your insurance premiums and what steps you can take to reduce the risk factors. Most state workers’ compensation systems are underfunded, so premiums are expected to increase over the coming years, especially for businesses with claims and worker injuries.

Firstly, all industries have risks; for example, construction, logging, and mining are physically demanding and have a higher likelihood of machinery-related personal injury claims or exposure to dust, while warehousing and logistics have a higher incidence of back and arm injuries.

Although office-based occupations may have a low personal injury risk, there is an increased risk of mental health issues leading to anxiety or depression. These types of physiological injuries can also have long terms affects, not only physical-related injuries.

Therefore, managing your operational environment and ensuring your employee well-being is key to reducing or potentially eliminating the risk of injury and workers’ compensation claims.

There are very good (free) guides to risk management online, including SafeWork NSW Workplace or When to use risk management.

It’s been proven that a business with a high level of risk management will have fewer claims involving employees and visitors. Therefore, directly reducing both the length of the time away from work and size of the claim and also premium.

Employers with a poor safety record or inadequate risk management will likely have higher insurance premiums than those who prioritise safety and invest in risk management.

Ultimately, working conditions can have a significant impact on your insurance premiums.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs. This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

 


Is Your Business Bushfire Safe?

Australian Bush Fire Outlook – Spring 2023

 NSW Large areas of central and northern NSW are expected to see an increased risk of fire in spring 2023.

 

 

 

 

 

 

 

 

ACT – Normal bushfire risk during spring is expected for the ACT.

The long-range outlook for spring predicts drier and warmer conditions, raising the possibility of increased bush and grass fire risks for summer.

Victoria – A warmer spring and earlier start to the high-risk fire season is expected this year, following three years of lower fire-risk seasons as a result of La Niña conditions.

Tasmania – Normal bushfire risk is predicted for spring. Drier, warmer conditions and an abundance of fuel will increase bushfire risk towards summer.

South Australia – Above-average rainfall has rapidly switched to below-average rainfall and drying out of soil in many areas of the state. Much greater fuel loads are present, requiring greater efforts for hazard reduction throughout spring before the hotter weather arrives. SA is expecting well above-average maximum temperatures and above-average minimum temperatures in spring.

Queensland – The combination of drying fuels, forecast below-average rainfall and above-average temperatures will likely bring locally intense bushfire activity. Bushfires may be destructive across parts of Queensland as vegetation becomes flammable during the spring months.

 Northern Territory  Drying conditions are predicted to impact the entire NT as El Niño continues to develop. Average grass fuel loads and adequate fire scar coverage across the Top End, Katherine and Arnhem districts mean these regions have normal fire potential. Above-average grass fuel loads, continuity of these fuels and high densities of invasive Buffel Grass have increased the risk for wildfires to travel across vast distances during spring.

Western Australia – Winter rainfall has been below average for southern WA and above average for northern WA. An above-average wet season in the Kimberley has delayed curing in the savanna grassland and subsequently the late dry season. For southern WA in late spring, drier and warmer conditions may contribute to higher surface fuel availability and make bushfires more difficult to suppress.

Bush Fire Planning Tips

You don’t have to live in the country to be at risk of fire. If you live near areas with significant bush, forest, long grass, or coastal scrub, you need to plan for the fire season.

Not everyone thinks clearly in an emergency. Taking steps to prepare before the fire season means knowing what to do when you’re at risk of fire. A written and preferably well-practised plan will help you remember what needs to be done during a crisis. Use the Bushfire Survival Planning template.

Key Steps

Why should I leave early?

Leaving early is the safest option to protect yourself and your family. Leaving early means leaving the area before there are any signs of a fire – not when you can see flames or smell smoke. Leaving early means avoiding panic, being trapped, making the wrong choices and risking serious injury or death.

Defending Your Property

Planning to stay and defend is a big decision. You could be at serious risk of death or injury from uncontrollable fires on Extreme and Catastrophic fire danger days. Most homes in bushfire-risk areas are not designed for Catastrophic conditions. The Defending Your Property page can help you decide whether or not you are capable of defending your property – and tells you about the risks and preparations involved.

How to plan

Taking steps to prepare before the fire season means knowing what to do when you’re at risk of fire. Every family or household is unique, so every fire plan will be different. The information and templates in the Fire Ready Kit and on this website are designed to assist you.

  1.  Which Fire Danger Rating is your trigger to leave?
  2. Will you leave early that morning or the night before?
  3. Where will you go?
  4. What route will you take – and what is your alternative in the event that a fire is already in the area?
  5. What will you take with you?
  6. What do you need to organise for your pets or livestock?
  7. Who do you need to keep informed of your movements?
  8. Is there anyone you need to help or check up on outside your household?
  9. How will you stay informed about warnings and updates?
  10. What will you do if there is a fire in the area and you cannot leave?

Remember to decide who will do what as part of your plan.

Your destination and journey

Talk to your family and friends about how you’ll know when to leave and where to go to stay safe. When you leave early on a fire-risk day, it’s up to you to decide on a suitable place to go.

If you do not have friends or relatives in low-risk areas who you can visit, consider community facilities such as libraries, shopping centres, swimming pools or cinemas.

If you rely on others for care and support, your only safe option on serious fire risk days is to leave early – never wait to receive a warning.

Why write down your plan?

Would you remember a plan that’s just in your head if you’re surrounded by smoke, heat and flames?

The bushfire season is long and is getting longer, and 2023/2024 is expected to be drier and warmer than previous years.

A written plan will help reduce uncertainty and anxiety.

Remember, any bushfire plan – written or not – is better than no plan.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs. This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

 

 


How Inflation is Affecting the Insurance Obligations of Your Business

How Inflation is Affecting the Insurance Obligations of Your Business

Both consumers and businesses have been impacted by inflation over the past three years. 

Although Inflation is generally decreasing, the cost of building materials, machinery and equipment and car parts have increased by 25% in the past three years. 

Like any other business, insurers have been impacted by inflation, including costs of repairing cars and rebuilding costs, which have been passed onto customers through increased premiums.

In this post, we’ll explore how inflation could cause under-insurance of your key business assets and what you can do to avoid it and manage insurance costs. 

Understanding Inflation and Its Impact on Insurance

Firstly, as the cost to rebuild or replace machinery has increased, the sums insured (declared values) on your insurance policies should have increased. 

Underinsurance occurs when the sum insured on your insurance policy — that is, the amount listed as the maximum paid out by the insurer in the event of a claim — isn’t enough to cover the full cost of rebuilding, repairing or replacing your home, commercial building or plant & equipment.

For example, suppose your building insurance has a $500,000 sum insured and the cost to rebuild after a significant loss is quoted as $700,000. In that case, you will not only have to pay the $200,000 gap but also have Average (Co-insurance) applied, resulting in a claim payment of approximately $460,000.  

So, it’s key to ensure your building, machinery and contents for the current replacement value to avoid any gap in cover and delays in settlement. 

Tips for Managing Your Insurance Obligations in an Inflationary Environment

You can do several things to ensure that you maintain the correct sum insured. 

1. Review Your Policies Regularly: businesses continually change to ensure you have the cover you need and keep your insurance adviser up to date, whether it’s inflation related, a new line of products or higher stock levels. 

2. Work with an Experienced Insurance Broker: Working with an experienced insurance broker can help you navigate the complexities of insurance in an inflationary environment. A broker can help by recommending a registered valuer for buildings and equipment. 

3. Consider Different Insurance Options: There are many different insurance cover options available or higher excesses or revise the mix of cover to reflect changes in your business. For example, you may want to consider a bundled insurance policy combining several types of coverage to save money.

Inflation is expected to remain high for some time, so it’s important to check and see if you have the right mix of cover, excess and premium to meet your needs. 

Speak to one of our insurance specialists today, who can work with you to tailor an insurance program that meets your needs.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs. This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.


Reducing risk and potential costs associated with workplace injuries

Reducing risk and potential costs associated with workplace injuries

Every business and industry has occupational and safety hazards that can result in injury to employees and contractors. Some workplaces have a higher risk of work-related incidents than others. Despite how big or small your business is, regardless of the industry or the state or territory, all business owners are required to protect the health, safety and welfare of their employees and other people at work.

While worker’s compensation insurance helps to manage the financial costs of medical bills, wage payments and lump sum awards for permanent injury, it doesn’t pay other hidden costs such as reduced productivity, team member stress, reputational damage, overtime etc.

What is work health and safety (WHS)?

It’s essential and also required, under OH&S laws, to manage workplace risks for employees, customers, visitors and suppliers. Managing WHS may initially cost money and time to implement safe practices and install safety equipment. However, not taking action can result in prosecution, fines and loss of skilled staff.

Managing health and safety

A workplace health and safety management system is a set of policies, procedures and plans that systematically manage health and safety at work and can help to minimise the risk of injury and illness from workplace operations.

There is a lot of free material online to assist in managing work health and safety risks, including How to Manage Work Health and Safety Risks from WorkSafe QLD.

Well-designed policies and procedures help organisations comply with work health and safety legislation and regulations, assist employees by minimising injuries at the work site, as well as minimising indirect costs to the company.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs.This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

Disclaimer:
This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement. 

 

Important Information 

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to constitute personal advice. This type of insurance product is designed for small and large businesses, that want to be covered against financial loss relating to accidents or personal injury involving contractors or sub-contractors.

We strongly recommend that you consider the suitability of this information, in respect of your objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.


Over 34000 Applications Lodged Lead to 2023 Fair Work Changes

As you are undoubtedly aware, the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act was passed in 2022, promising a boost to wages and the closing of the gender pay gap with a myriad of changes to be rolled out during 2023.

Business 360 newsletter articles at the end of 2022 HR News – Business 360 Pty Ltd (business360pps.com.au), unpacked a number of the changes already in place or due for upcoming implementation, including:

  • Prohibition of pay secrecy in employment contracts
  • Limitations on the use of fixed-term contracts
  • Paid Family and Domestic Violence Leave
  • Changes to flexible working arrangements
  • Changes to bargaining and enterprise agreements and a simplified BOOT (Better Off Overall Test)

It was also a landmark year for employees challenging their employers through contact with the Fair Work Ombudsman and Fair Work Commission.  Take a look at these statistics:

 

Of the applications lodged with Fair Work, a whopping:

  • 70,000 plus employees made underpayment of wages claims
  • $150 Million in back payments Fair Work investigations recovered
  • Record fines for Businesses & Directors
  • 13,096 employees lodged unfair dismissal claims
  • 5,010 employees lodged cases of dismissal involving a general protection
  • 1,874 employees lodged cases for sexual harassment
  • 631 employees lodged cases to stop bullying

NOW is the time to get your HR practices in order, with applications and claims set to increase significantly as the new Secure Jobs, Better Pay Act provides even more protection for employees.

Ask yourself whether your business is on track to adopting the new requirements.  For example:

  • Have you reviewed pay rates, classifications and award changes?
  • Have you updated your employment contracts and policies?
  • Has your payroll system been updated to provide for paid family and domestic violence leave?
  • Have you ceased advertising pay rates in your job advertisements that are below modern award rates?
  • Have you considered how you will manage flexible work requests?
  • Have you thought about how you can respond directly to employees when they find out a team mate is being paid more than they are?

Need help getting your HR practices in order?  Business 360 can assist you in answering all the above questions.

Business 360 can conduct a compliance check of your current HR practices, including salary and wage practices, create or update your policies and educate your team, giving you peace of mind if a Fair Work claim is made against your business.  You’ll be off to a good start in defending the claim.

Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here, we can guide you with Emergency Planning and Business Continuity. We pride ourselves on being informed about risk and insurance and ensuring you have the right Insurance policy for your needs.This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net

Disclaimer:
This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement. 


The Optus cyber breach reminds us of the importance of cyber security

The Optus cyber breach reminds us of the importance of cyber security

The Optus cyber breach reminds us of the importance of cyber security

On 22nd October 2022, the Optus cyber breach resulted in the disclosure of personal information of more than 10 million customer accounts. Names, addresses, phone numbers, dates of birth, email addresses, and even driver’s licence, passport and Medicare numbers were stolen in the security breach. A ransom was demanded and the data of 10,000 customers was posted on the web for anyone to access.

Continue reading The Optus cyber breach reminds us of the importance of cyber security

Marine and Hull Insurance Uncovered

Marine and Hull Insurance Uncovered

Marine and Hull Insurance Uncovered

The vast majority of international freight (90%) is transported around the world by sea with more than 70% in containers. Unfortunately, merchant shipping isn’t always the safest form of transportation; there were 88 major accidents involving merchant shipping reported worldwide in September 2019, and five ships were lost. 

Continue reading Marine and Hull Insurance Uncovered