Typical general insurance policies required for business owners include:
Business insurance – if you have business assets (building, contents & equipment), you should consider business insurance. Additionally, this type of insurance (or sections contained therein) typically forms part of a tenancy lease agreement.
Whilst business insurance policies do vary between different insurers, a summary of the typical sections which are incorporated under this product type, are summarised below:
o Material loss or damage – Covers the physical loss or damage to your business assets (e.g. building, contents and stock), at your premises from certain sudden, unexpected or unforeseen occurrences (perils e.g. fire, storm damage). Noting, flood cover is typically excluded from standard products.
o Business interruption – covers loss of income to your business as a result of material damage to your property and can assist with additional increase costs of working.
o Glass – cover for the costs or replacing internal or external glass that is accidentally damaged or broken (e.g. windows; including advertising signs).
o Burglary – covers loss of your contents and stock due to theft from forcible and violent entry to your premises.
o Money – covers your business’s money whilst on your premises and in transit.
o Broadform liability – “Public Liability” protects your business against the legal costs in where a Third Party (e.g. customer, member of the public) sustains property damage and or personal injury as a result of your business operations and negligence. “Product Liability” protects your business if you sell, supply or deliver goods in where the product causes injury, death or damage.
o Machinery Breakdown – covers mechanical breakdown of machinery equipment at your premises (e.g. Air-Conditioning Unit, Refrigeration Equipment).
o Computer Electronic Equipment – covers breakdown of electronic equipment at your premises (e.g. photocopiers, computers).
o General property (Special Risks) – covers loss or damage to portable property (e.g. laptops, ipads, mobile phones).
o Employee dishonesty – loss of money or contents caused by theft, fraud or dishonesty by your Employees.
o Tax audit – covers accountants fees in connection with an audit of your business conducted by the Australian Taxation Office.
o Transit – covers the loss or damage to goods and stock that your business buys, sells or uses whilst they are in transit, in a vehicle owned or operated by you.
Cyber liability – insurance that can help protect an organisation recover losses and associated costs resulting from large-scale breaches, business interruption, ransomware, and other types of cyberattacks. A cyber insurance policy can be an extremely valuable risk transfer tool for every business.
Commercial motor vehicle – your car is an important asset used for your daily activities. It is important to protect your vehicle in the event of an incident (accident, theft) and to cover your legal liability for damage to a third party caused by your vehicle. Cover options available consist of 3 types of policies e.g. comprehensive, fire & theft or third party property damage only.
Workers’ compensation insurance – workers compensation insurance is mandatory in all Australian states and territories for employers. If you’re an independent contractor, you may require your own insurance. If a sole trader, you are unable to cover yourself as an “employee” by workers compensation insurance. In this circumstance, you will need to consider your owner personal accident/sickness and disability insurance. Rules vary between states and territories, if in doubt, check with the relevant regulator/workers compensation authority for requirements. Marsh does not arrange workers compensation insurance in those States where there is a government scheme and provides only consultancy services in those States.
Management liability
Where professional indemnity insurance covers the advice or service you provide to your clients, management liability Insurance covers the act of running your business. A management liability policy will protect your business and personal assets against legal costs for allegations of mismanagement, misconduct or legislative breaches.
Helpful Hints:
1. Dare to compare: It’s never been more important, to review your insurance in detail, making sure the limits of cover and current claims excesses match your business requirements and transfer of risk objectives. Best practice is to ensure, at a minimum that you conduct an annual review of your risk profile and loss control measures. Whether that’s ensuring limits of cover match the current state of your operations, assets, company structure, and adequacy on the sum insureds elected or determining business tolerance for a higher claims excess to generate some premium relief.
2. Good claims performance: Amongst other rating factors, insurers primarily use claims performance in determining the overall premium. It’s recommended that a business incorporates strong risk management practises to mitigate the likelihood of avoidable claims. It is also a good idea to obtain a formal claims experience history report and ensure your broker has finalised any open or recoverable claims, if not they could be counted in the insurer’s premium calculations.
3. Be careful not to compare insurance solely on premium: The price of your insurance plays a big role when comparing different policies, however, business owners should consider completing a side-by-side comparison of the available options before making their decision. The last thing any business owner wants is to be caught out with a policy that doesn’t cover their business for the risk exposures if an accident was to occur.
4. If in doubt, check it out: Renewing any insurance policy for your business is an important decision and can sometimes mean the difference between being covered for a specific risk or not. If you have questions that can’t be found online or in a brochure, give your insurance advisor a call to ensure you thoroughly understand the insurance solution on offer.
5. Start early: It is imperative that you commence reviewing your insurance requirements at a minimum 6-8 weeks before the expiry date of your insurance renewal.
This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. The Australian Meat Industry Council (AMIC) receives a financial benefit when an insurance policy is arranged by Marsh for AMIC Members enabling it to continue to provide further services to Australian meat industry. LCPA 24/135.
