There are many moving parts that help to keep your business running. Things like your office furniture, portable equipment, stock and even your business premises are all things you rely on and being without them is a drama you could live without.
In our comprehensive guide we look at some of the various types of business insurance coverages and how they can help to keep your business protected. From tradies to hairdressers, marketing consultants and personal trainers, there are business insurance options to protect all kinds of small businesses.
What is Business Insurance?
Business Insurance is an insurance package with various types of cover for your business needs, designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). Business insurance can also cover your portable equipment, and loss of revenue due to business interruption in specified circumstances.
Some of the types of business insurance coverages available include:
- Building/ property (Public Liability)
- Property (Contents)
- Portable Equipment (e.g. glass, electronic equipment)
- Business Interruption
Why do I need to consider Business Insurance?
Your business assets are what help you stay in operation. The cost of things like your furniture and electronic items can quickly add up if you have to replace them all. Business insurance offers flexible coverage options so you can protect the things that matter most to your business.
Depending on the location of your business, there is also an option to take out Natural Disaster cover*. This coverage protects against loss of damage caused by earthquakes and other natural disasters.
What is typically covered?
A) Material damage loss for your physical assets
- B) Financial loss due to Business Interruptionsas a result ofan insurable event (under A)
What is typically excluded?
Like any insurance policy, it is always best to check the Product Disclosure Statement (PDS) or have a chat with your insurer about what is not covered by your policy. Understanding these details could save a lot of drama if a claim were to occur.
- Claims of negligence/breach of duty arising from an act, error or omission in the provision of your professional services
- Claims arising from damage to third party property or personal injury
- Known claims and circumstances
This is a general overview of some of the main types of business insurance and what they provide protection from.
Building insurance provides cover for physical loss or damage to buildings you own and out of which you operate your business, as a result of an insured event (such as fire, storm, flood and other perils).
It could also cover:
- Fixed signs and lettering
- Power lines and their supports
- Optional cover is available for natural disasters, including earthquake*.
Property insurance provides coverage for loss or damage to your business contents, stock and equipment caused by fire and other perils.
The policy may provide cover^ for
- Equipment breakdown
- Seasonal stock increase
- Stolen keys
- Optional cover for natural disasters, including earthquake*
^Sub-limits and conditions apply. Refer to the policy wording.
Portable electronic equipment insurance covers portable computer equipment and cell phones anywhere in the world for loss or damage (for events such as fire, theft by forcible entry, explosion or storm) subject to policy sub-limits.
Business interruption insurance provides cover for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire). It is also designed to assist your business to recover from an insured event by paying ongoing expenses (such as wages or rent).
What types of Business Insurance do I need?
It can sometimes feel a bit overwhelming trying to figure out what types of business insurance your business needs. One way to make the process a bit easier, is by understanding the types of risk your business is exposed to. Once you have identified the areas of your business that may need protection you can then start to look at what types of coverage are going to suit your business.
To help, these are some scenarios of how different types of business insurance can help.
- If you own your businesses premises, you are probably wanting to protect your biggest asset! That’s where Building insurance comes into play.
- Your tools of trade are essential to getting the job done and being caught without them could really throw a spanner in the works. Whether you are a gardener or a mobile make-up artist, protecting your tools with Portable Equipment cover is something you may need to consider.
- Business Interruption insurance is something you could consider as a safety net when things do not go to plan and your business is faced with a claim. If you were unable to open up shop because your business premises was destroyed by an insurable event, Business Interruption may be able to provide that extra financial support when you need it most.
While there are a variety of different types of business insurances available, not all kinds of coverage are going to be suitable for your business. Protecting the things that matter most to your business could be the difference between staying in business for the long haul, or closing the books for good.
How much coverage do I need?
When it comes to the amount of coverage, each and every business is different, with their own unique factors and risk. There isn’t a one-size fits all type of business insurance coverage, but there are a few things that you can keep in mind when trying to work out your coverage.
- What are the assets that you rely on most to keep your business functioning and could you afford to replace them without suffering financially?
- As your business increases and you have more stock/contents, it’s important to update your policy to ensure the amount you are covered for is adequate.
- If you also renovate or extend your business premises, make sure your policy is updated to include these changes.
Get covered today
Getting your business insurance sorted has never been easier. At BizCover, we keep the process paperwork and jargon-free, saving you time and stress. Jump online to find your business insurance today.
* Cover for natural disasters is subject to the location of your business and is not available to all postcode areas.
^Sub-limits and conditions apply. Refer to the policy wording.
* This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.