Insurance for Your Business
Business or commercial insurance falls into three broad categories:
Assets and Revenue - things the business owns together with its revenue generating capabilities.
Liability - legal obligations arising from injury to others or damage to their property.
Personnel - accident or illness involving yourself or your employees.
Without adequate insurance protection, a major disaster such as fire, serious injury or an extended court case could find any business unable to continue, and facing huge financial burdens.
A strategic insurance program, based on advice from an experienced insurance broker, could prevent that from happening. Armed with expert insurance advice, informed decisions will be easier made about what to insure, or which risks to carry and manage as part of the business. Select Business Insurance (General) if you can't find a closer descriptionto your business in the specialities listing.
Common Policy Types
Below is an alphabetical list and brief explanation of the types of insurance commonly held by small to medium businesses. As all businesses are different, their insurance needs will vary. Business insurance "package policies" also vary considerably.
Business Interruption - covers loss of trading profits if business is interrupted through damage to property by fire or other insured perils.
Burglary - covers loss or damage to stock, goods in trust and other contents for which you are responsible following theft from within the premises. Note: It does not normally cover theft by employees or others entitled to be on the premises.
Employment Practices Liability - protects employers against damages and legal costs arising from allegations of inappropriate conduct towards employees in connection with their employment.
Engineering - covers mechanical and electronic equipment against such risks as breakdown and explosion.
Fire & Perils - covers destruction of, damage to, buildings and contents as a result fire and other perils such as lightning, explosion, malicious damage, earthquake, storm, and water damage. Flood is not covered often automatically by most standard fire and perils policies, but is often still available
Goods in Transit - covers loss or damage to property whilst in transit by road, rail or ship either within Australia or worldwide.
Keyman Insurance - protects the business in the event of the death or long-term disablement of a “key person”, usually the owner or someone else critical to the continued existence of the business.
Money - covers cash and other negotiable instruments for loss or theft from business premises and whilst in transit eg to the bank.
Motor - all registered vehicles must be insured for third party injury liability (CTP). Comprehensive insurance covers third party property damage and own damage.
Personal Accident, Illness or Disability - covers loss of income due to inability to work. Unless a Proprietary Limited company, Principals will not usually be covered by Workers’ Compensation and should arrange alternate disablement cover.
Products Liability - if you sell, supply or deliver goods, even in the form of repair or service, you may be legally liable for injury or damage claims arising out of your products.
Professional Indemnity - businesses that provide advice or tender professional services of any kind can be sued for financial loss due to errors or omissions, and may need this protection.
Public Liability - protects you for claims by third parties who may suffer personal injury or property damage arising out of negligent or unlawful acts committed in the course of your business.
Workers’ Compensation - is compulsory insurance in all states and territories. It compensates workers and their relatives for death, injury or illness arising out of the injured worker's employment.
Other insurances that might be relevant to the business but are not a definitive list are - Electronic equipment breakdown, Computers and computer records, Legal expenses/tax audit, Fidelity guarantee, Product recall, Credit/bad debts.
Some organisations, especially larger businesses or companies performing specialised work, require their own specifically designed insurance and risk management programs. Brokers provide these services. They are involved with designing the policies, negotiating terms with insurance companies and then placing the cover with the insurer of your choice.
Risk management programs are often integral to the process. Risk prevention and loss minimisation strategies serve towards reducing premium costs.
Talk to a broker to find out exactly what cover your business requires.
Premium funding
The premium for an insurance product is required as soon as the insurer accepts the risk. However, that often doesn't suit the clients business, they might prefer to spread payments of the premium over, say 12 months. Premium funding can be arranged through your insurance broker. This is a credit transaction which is separate from the insurance transaction. Specialist premium funding companies handle the credit arrangements.