What is business insurance?

A business takes years to build – but an accident or disaster could destroy it all in minutes. That’s why businesses should help protect themselves with a quality business insurance pack. With the right cover in place, owners can run their business with confidence, knowing that their premises, stock, equipment, and reputation are protected by insurance.

 

Who should consider it?

Business owners can benefit from taking out an affordable and comprehensive business insurance pack to help protect them against the main risks involved in running a business.

“Having the right insurance will help protect your business and minimize its exposure to risk. This may include insuring your business, your income, and your commercial risk.”

Department of Innovation,industry and science, 2018

Did you know?

$33B

The cost of natural disasters to Australian business, government and communities is estimated to reach $33 billion by 2050.

(Australian Business Roundtable, The Economic Cost of the Social Impact of Natural Disasters, 2016)

35%

According to Inside Small Business, only 16% of SMEs have a financial back-up plan in place, while 35% said they’d need to cut spending and limit their lifestyle if they were unable to work.

(Inside Small Business, Seven insurance issues small-business owners should consider in  2017)

24%

Sole traders were the least likely of businesses to be insured, (24%), followed by small businesses operating from home (21.4%).

(21.4%).(ICA, Non-insurance in the Small to Medium Sized Enterprise Sector, 2015)

What can it cover?

Business interruption insurance can cover the loss of any sales you would have made while your business is out of action – plus any extra costs you incur to stay open. Depending upon the policy, business interruption insurance can cover:

Type of cover
Potential benefits
Property damageRepair or replacement of property damaged.
Business interruptionLoss of trading profit following insured damage to property and additional costs and expenses incurred during a claim
TheftRepair or replacement of property stolen.
MoneyLoss of money.
Public or products liabilityYour liability to pay compensation for personal injury and property damage as well as the costs involved in defending a claim triggered by the policy
GlassFor replacing glass inside or outside your premises, including your shopfront windows, mirrors, or display cases.
TransitFor stock that is in transit on the road, in the air or by sea
Electronic equipment breakdownFor repairing or replacing electronic equipment that breaks down.
Machinery breakdownCover for costs associated with machinery breakdown
General propertyTo cover your tools of the trade, including laptops and tools that you use for your profession or trade.
Tax auditTo cover the costs of being audited by the ATO.
Employee dishonestyDirect financial loss of the business caused by the dishonest or fraudulent conduct of an employee which is first discovered during the period of insurance
 

What usually isn’t covered?

Exclusions, and the excess which you need to pay and limits of liability, vary greatly depending on your insurer and the requirements of your business.

Management Liability Insurance

Case Study

Rohan owns a shop in town. One night, while Ron was away, a water pipe bursts, flooding the building, and damaging his entire stock. Even worse, the building had to be evacuated and renovated to repair all the water damage. All this left Ron unable to trade for six weeks. Luckily, Ron’s business insurance covers the cost of the renovations. And, because he had business interruption insurance, he received a payout to cover the income lost during the time he was unable to trade.

Management Liability Insurance