What is a Business Insurance Package?
A Business Insurance Package (sometimes referred to as a Business Pack or simply Business Insurance) is an insurance policy that combines Public Liability insurance with other types of cover to protect things like your business premises, contents, stock and equipment. It can also cover events such as a unplanned business interruption or tax audit.
Business Insurance Packages can be tailored to suit the unique needs of your small business.
What is the average cost for a Business Insurance Package?
On average, BizCover customers pay an average of $89 per month* for a Business Insurance Package. However, insurance costs differ widely depending on several factors like,
- The types of cover you choose
- Your industry
- The number of employees at you business
- Your business location
- Your claims history
Generally speaking, businesses with higher risk, multiple locations, or more employees may pay more for insurance..
Business insurance cost by cover
| Average Cost Per month | What’s Covered | |
|---|---|---|
| Public Liability | Average Cost Per month: $42 | What’s Covered: Covers you if a third-party claim that your negligent business activities caused them injury or property damage. This includes defence costs cover. |
| Professional Indemnity | Average Cost Per month: $103 | What’s Covered: Covers you for losses claimed by a third party and defence costs due to alleged or actual negligence in your professional services or advice. |
| Management Liability | Average Cost Per month: $112 | What’s Covered: Covers claims of wrongful acts in the management of the insured business and can include directors and officers liability, employment practices liability, crime, statutory liability and tax audit. |
| Cyber Liability | Average Cost Per month: $130 | What’s Covered: Covers losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach. |
How much do retailers pay for their Business Insurance Pack?
The average cost of a Business Insurance Package for a retail business is $103 per month*. However, the cost will vary from business to business. The types of cover packaged in the policy will also impact the price, for example, Theft, Contents, Business Interruption, Glass and many more.
Public Liability is a form of cover that many retail businesses choose due to their exposure to potential claims arising from personal injury caused to their customers, suppliers and members of the public. It is also generally a mandatory requirement under a commercial lease agreement, as is Glass cover.
How much do food businesses pay for Business Insurance?
The average cost of a Business Insurance Package for businesses operating in the food industry is $145 per month* with BizCover. This includes customers operating in food retail as well as food and beverages including manufacture and services.
How is Business Insurance cost calculated?
Many people ask about the median cost of business insurance, but it varies depending on your type of business. Higher-risk businesses typically pay more. A more practical approach is to estimate insurance costs based on your:
- Industry: High-risk sectors such as construction or healthcare may attract higher premiums than office-based roles.
- Risk exposure: Handling hazardous materials or high-value products may increase costs.
- Business size and revenue: Larger operations or higher turnover may result in higher premiums.
- Location: Urban businesses or areas with frequent claims may face higher costs.
- Cover type and limits: Policies with higher limits or additional cover types may cost more.
- Claims history: A record of frequent claims may increase premiums.
Finding the right business insurance
Assess your business needs and identify the risks you face. Compare different insurers and policies to find coverage that protects assets and staff without paying for unnecessary extras. Consider whether a single comprehensive policy or separate policies work better for your business.
How can you get affordable business insurance?
Saving on business insurance is important for many small businesses. Here are some practical steps that could help you save:
- Combine cover with a Business Insurance Package: Bundling multiple policies could reduce the overall premiums for your business.
- Choose higher deductibles: Increasing deductibles could lower annual payments, provided the excess remains affordable.
- Maintain a clean claims history: Implement safety and risk management practices to help prevent incidents that could raise premiums.
- Only take necessary coverage: Select policies based on your actual business needs instead of automatically opting for maximum limits.
- Review policies regularly: Compare quotes and adjust your cover to reflect changing business circumstances and rates.
- Manage your risk: Safer businesses tend to have lower insurance costs. Create a risk management plan to help reduce the likelihood of exposures, and lawsuits.
Business insurance costs vary by industry, business size, and risk exposure. Carefully review your needs, cover options, and insurers to manage costs while keeping your business protected.
