Business insurance policies provide businesses with protection and peace of mind against a range of risks. Insured events can include:
How do I select the right policy?
It is important that you understand the extent of your policy coverage and your insurance requirements. Policy coverage is always subject to the terms, conditions and exclusions of the insurance contract and policy wording provided by the insurer.
Each insurance company has its own policy wording. This means that coverage can vary considerably from one insurer to another. It is vital that you compare each policy based on the appropriateness of cover for your individual or business needs.
An Overview of Common Policy Coverage
Fire and Perils
Covers your business for damage to insured property, which includes building, contents and stock, caused by certain defined events:
Additional extensions of cover are also included:
Provides cover for consequential loss of profits or revenue resulting from the interruption or interference with your business caused by damage covered under the Fire and Perils Sections. There are several different options of cover available, these include:
Business Income Protection:
Consequential Loss of Profits:
Claims preparation expenses
Reasonable professional fees and other expenses necessarily incurred as a result of the property claim (as agreed by the insurer and subject to policy limit).
Additional increased costs of working
This option, if selected provides cover for additional expenditure not otherwise covered under any other section following a loss. It provides cover for reasonable costs incurred to minimise the loss or damage caused to the business. An example of such – cover for additional payroll and advertising expenses required to maintain the business’s customer base. (as agreed by the insurer and subject to policy limit).
Outstanding Accounts receivable
Cover for the amount owed to the business that it is unable to collect due to damage to records.
Public & Products (Broadform) Liability Insurance
Provides insurance cover in respect of insured’s liability for loss or damage caused negligently to third parties, who are not the insured, as a result of an occurrence in connection with the insured business.
It indemnifies the insured business against legal liability to pay compensation in respect of personal injury or property damage claims arising in respect of the product and/or service sold or supplied by the insured; however it does not cover product warranty and is always subject to terms, conditions and exclusions. In addition, these policies also provide cover for defence costs even if the action against you is false or fraudulent, provided that an excluded circumstance does not apply.
Personal Injury cover includes:
Property damage includes:
Theft / Burglary
Covers insured property (business contents, stock and customers’ goods as declared) contained on your business premises following forced and violent entry. Additional cover includes damage to buildings and fixtures, replacement of locks, protection of premises, and temporary removal of your property insured to another location subject to the policy limitation.
Covers Loss of, or damage to, money contained in the building during or outside business hours, while in a locked safe or strongroom, in transit, or in your personal custody while contained in your private residence.
Cover Options Available:
Cover provides protection against accidental breakage of fixed glass located at the business premises. Property covered includes items such as Glass / Perspex windows, doors, mirrors and skylights for:
In most cases the policies also provide cover for wash basins, lavatory pans and cisterns.
Covers the loss of money or goods (i.e stock) due to the fraudulent or dishonest conduct of an employee, for their own gain or the financial benefit of any other person or business. A few examples of events which are covered include:
Covers for damage to electrical, electronic and mechanical machinery insured due to breakdown located at the business premises.
Cover provides compensation to your business for:
Additional Features and Benefits
Computer / Electronic Equipment
Covers damage to insured computers and/or electronic equipment located at the business premises. Cover options available under this section include:
Additional Features and Benefits
Covers items such as laptop computers, tools of trade whether at, or away from the premises.
There are principally two covers available under this section:
Goods in Transit
Covers your business for damage to property insured whilst in transit within Australia caused by certain defined events. It provides cover for Loss of, or damage to goods insured.
There are several cover options available:
All risks not excluded covers the insured item(s) being dropped by the carrier resulting in your item(s) being destroyed (covers all risks of loss or damage not otherwise excluded)
Provides cover for professional fees in connection with an audit by a government body. Cover can be extended to include audit cover of directors of the insured business.