Generally I find many clients are underinsured which doesn’t become a major issue until something goes wrong. There are usually 2 reasons for this:
1. When finances are tight this is one of the first things people reduce
2. People are not aware of what they can or should be covered for
Today we have prepared a table of information as to what the various types of insurance are that you may require in your business.
From my experience especially if you have a claim it is beneficial to have a broker. Every year when I renew my insurance I sit with my broker and review what I have and don’t have. The benefit of this is that then I am able to make a decision having the knowledge of what the consequence is if I choose to not have a specific type of insurance. It is also important to make sure that when you are looking for insurance that you are taking into account what requirements you have for rental lease and business contracts.
| TYPE OF INSURANCE | DESCRIPTION |
| Professional Indemnity/Liability | Protects you from legal action taken against you if someone suffers a loss after following your professional advice or as a result of your receiving your service. |
| Property | Covers damage or loss to buildings, contents and stock caused by insured events and accidental damage |
| Public Liability | Covers your business for legal costs and compensation costs that you might have to pay if you are found liable to someone because you caused death or injury, loss or damage to their property, or economic loss due to your negligence |
| Property | Covers damage or loss to buildings, contents and stock caused by insured events and accidental damage |
| Product Liability | Businesses that supply, deliver or sell goods, even in the form of services or repairs, may need cover against claims of goods causing damage, injury or death. Product liability cover protects you if any of these events happen to another person or business by the failure of a product you are selling |
| Theft and Burglary | Theft insurance generally covers your business against loss or damage to your stock and contents if someone forces their way onto your premises, or uses deception to get in to your premises. It usually does not cover cash losses, which can be covered separately |
| Money | Covers your money for theft at the premises, in transit and at your private residence |
| Mandatory motor vehicle accident personal injuries insurance | Every state and territory requires mandatory motor vehicle accident personal injuries insurance for all company or business vehicles. |
| Commercial vehicles | Many different types of policies are available, so make sure you understand the options before making a decision. Consider the three most common options below:
Third party, fire and theft |
| Tax audit Insurance | Covers costs incurred by your accountant, or registered tax agent, when notified by the Australian Taxation Office to conduct an audit or investigation into your tax liability |
| Business interruption | Covers businesses that suffer a loss because they cannot trade for a period of time due to loss or damage from a weather event, flood, fire or other insured interruptions |
| Deterioration of stock | Covers businesses for the deterioration of chilled, refrigerated or frozen goods and stock if a refrigerator or freezer unit storing these goods breaks down and spoils the items |
| Glass | Covers the replacement of external and internal glass, as well as specified glass items |
| Employee Fraud | Covers against fraudulent or dishonest actions committed by employees that directly results in loss of money, negotiable instruments or goods |
| Employee fraud or dishonesty | Covers against fraudulent or dishonest actions committed by employees that directly results in loss of money, negotiable instruments or goods |
| Workers Compensation | Workers’ Compensation insurance is compulsory in all states and territories for businesses with a certain number of employees |
| Machinery/equipment breakdown | Covers machinery and equipment used in your business. Some policies may also cover stock damages as a result of the breakdown |
| Goods in transit/property in transit | Covers the loss of, or damage to, goods you buy, sell or use in your business when they are in transit by road, rail, air and sea. It also covers damage to property – such as tools and equipment – while in transit within a defined set of geographical limits |
| Computer and electronic equipment | Covers accidental damage or loss to computers and electronic equipment and data |
Sourced from Insurance Council of Australia (www.understandinsurance.com.au)
If you need assistance when renewing your insurance please contact us and we can pass you onto some of our trusted insurance advisors.
