Business Insurance

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.

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.

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.