Need a Mortgage Broker for Business Insurance?

Business Insurance, or Keyman Insurance as it is commonly referred to, is a type of Life Insurance Policy which is set up to protect your business. A Business Insurance policy can cover the ‘key person/s’ for a combination of all, or any of the four major types of Risk Insurance covers, i.e.:

  • Life insurance
  • Total and Permanent Disability insurance
  • Critical Illness/Trauma Insurance
  • Income Protection insurance

Business Insurance, as the name suggests, is designed to protect the business, not the individual. Whatever your business, you should consider taking out a 『Keyman Insurance Policy’ on the key person/s or employees within the business.

Just imagine the consequences if any of the following situations were to occur:

  • You have a Business Loan guaranteed by one of the Directors, and he/she dies.
  • A key business employee suddenly suffers a traumatic event (such as cancer) and is unable to work, having to take 6 months off work – how would you replace that level of expertise to keep your business running?
  • A joint business partner dies & the company shares are passed onto a former business partners’ estate. The former business partner now owns this part of the business & may have possibly become a decision-maker.
  • A key income-producing Executive Director dies or becomes disabled.

The amount of Keyman Insurance cover really depends on the business and the purpose of the policy and may be dependent on the tax effectiveness of different structures. There really is no quick fix, but a general rule is to start with the four key Risk Insurance areas listed above and then tailor the cover to cover your business.

Please call First Choice Mortgage Brokers to discuss your Business Insurance opportunities and for any assistance in accessing the Business Insurance application process.

Business Insurance FAQs

What Type of Business Insurance Do I Need?

Since business requirements vary by company and industry, there is no one-size-fits-all business insurance package that is best for any business owner. When purchasing business insurance, it’s a smart idea to consider the most critical risk factors you need cover against, as well as the investments you wish to protect.

Furthermore, depending on the type of the industry, specific business insurance plans are legally required in Australia. Financial consultants and builders, for example, are expected to provide professional insurance protection in order to operate.

The types of business insurance you need is determined by your unique circumstances. For example, if the business property is accessible to the general public, public liability insurance can be helpful. If you own a garage, you should consider getting equipment and machinery insurance and burglary insurance to cover your tools.

What Types of Business Insurances Are Available in Australia?

There are dozens of business insurances available on the Australian market; however, the most popularly useful covers include:

  • Workers’ Compensation Insurance is compulsory if you have employees.
  • Public, General and Professional Liability Insurance.
  • Third-Party Personal Injury Insurance is compulsory if you own a motor vehicle, often part of your vehicle registration fee.
  • If you have important business assets, property, stock or products you can’t afford to lose, consider a type of Stock, Product and Asset Insurance.
  • Accident and Liability Insurance.
  • Technology and Cybercrime Insurance.
  • Commercial Property Insurance.
  • Business Income Insurance.

How Much Does Business Insurance Cost in Australia?

There are many personal and business factors that determine the cost of business insurance coverage. To select the level of coverage you want, you must consider the most essential foundations and aspects of your business, the risks it faces, the industry, size, location and financial turnover.

For example, a retail business will most likely have less insurance requirements than a company in the building and renovation industry. Your insurer should weigh the following factors when determining your premium:

  • Business industry: e.g., administrative, construction, retail, hospitality, etc.
  • The nature of the business: what services or products do you provide?
  • Location: where are you based, and where do you operate?
  • Size: including the number of staff, the size of your site and your net business profits.
  • History of claims: have you ever had to file an insurance claim for your business?
  • Nominated insured sum: the amount paid by your insurer in the case of an insurance claim. This will have a substantial effect on the rate of your insurance premium.
  • Products manufactured and/or sold: If your product is costly or comes with obvious potential risks, the cost of your premium can rise.
  • Third-party interaction: the amount you communicate with other companies, through alliances, outsourcing, or as a supplier. The insurer can see this as a liability, depending on the arrangement and the organisation.
  • Other risk factors: could include everything from the saturation of your sales market to the volatility of your goods and services.

Speak to a Mortgage Broker

You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

make an appointment