There is an insurance product to cover each of the many things that can go wrong in a business, but knowing what can go wrong and what insurance products are available is complex. What risks are there? what insurance do you need? how much should you buy? and who should you buy from?
The insurance industry puts together ‘package’ policies that cover the vast majority of risks that your business will face. Often you can quickly select some key features you do and don’t want. For example, consider the ‘Office Pack’ policy. This type of provides all-in-one protection for businesses operating from an office. These policies art like a restaurant menu, you pick & choose what you want so they can be tailored to your business requirements. From a cost perspective they are pretty reasonable. In effect, you can save yourself time, money and stress by getting an Office Pack policy.
Typical cover includes:
OFFICE COVER:
Property:
Damage to buildings, contents and stock caused by fire & perils and accidental damage.
Even if you’re just leasing an office space, you still need to cover your contents. If you work from home, don’t make the mistake of thinking your Home & Contents policy covers you. In fact your Home & Contents policy probably specifically excludes any losses that arise out of or are
connected to your business. Therefore you need specific cover for your business.
Business Interruption
The shortfall in your business income caused by the interruption to your business after you’ve had an insured loss.
In layman terms ask yourself this question. If my office burnt down and I needed to relocate & setup somewhere else, how long would that take and how much revenue would I lose along the way until I got up and running again? If the answer is that you would be up and running in a few days and the revenue loss wouldn’t bother you, then you may not need this cover. However, if the answer is that it would take you time and cost you money then consider Business Interruption insurance.
Money
Theft of money.
This essentially means someone stealing your money. For example, you take money out of your till and take it to the Bank but get robbed on the way there.
Whether you need this or not depends on whether your business has money floating about that could be
stolen by a stranger.
Glass
Breakage of internal and external glass and signs.
Anyone who has ever had to replace glass knows that it’s expensive. If you have a shop front then this is good cover to have. If you are in an office then you probably don’t need this (although check your lease, you may find you’re responsible for glass damage).
Broadform Liability
Your legal liability to pay compensation for personal injury or property damage. It covers both product and public liability.
Product liability is liability flowing from your products, being damages that flow from an unknown defect in your products. If you don’t have products (i.e. you just offer services) then you may not need the ‘product liability’ cover, although often there is a nominal amount provided anyway for ‘just in case’ situations.
Public liability is liability from an event that happens in the course of your business. For example, a client comes to your office and slips over on the floor and hurts themself. This is cover you should buy.
Employee Dishonesty
Fraud or dishonesty by your employees.
Theft of money by employees is surprisingly common. If you have no employees, then you don’t need this cover. If you have only 1 or 2 employees and you have a genuinely tight control on the money in your business then you may not need this cover. However, if you have outsourced the money handling side or perhaps you don’t reconcile daily i.e. if there is any conceivable way an employee could, with bad intent, steal your money then consider this cover.
Machinery Breakdown
Damage to machinery caused by breakdown, or damage to boilers and pressure equipment caused by explosion and collapse. Refrigerated or frozen goods can also be covered against deterioration. This is pretty obvious, if you have this type of machinery then get this cover.
Computers & Electronic Equipment
Fire, theft, accidental damage, breakdown and business interruption cover for computers and electronic equipment. Many businesses run on the back of the computer systems, so a loss here would really hurt.
General Property
Primarily designed for property (excluding stock) which is moved around, like tools of trade or professional equipment.
If you are a tradie then it could be your tools. If you are an office worker, it may be your laptop/iPad etc.
Tax Investigation
Costs incurred by your accountant or registered tax agent (after receiving notification from the Australian Taxation Office) in conducting an audit or investigation in relation to your liability to pay tax.
Each Insurance company may offer a slightly different list of insurable items, but essentially the core features are the same. Working with an Insurance Broker can help you determine your risks and select the most appropriate solution and Insurer.
