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How Much Does Business Insurance Cost?

Business Insurance, sometimes referred to as a Biz Pack, is an insurance policy designed to combine protection from property and liability risks all in one package. There are several different cover options available under a Business Insurance pack to protect things like your business premises, contents, stock and equipment, as well as financial loss due to business interruption. There is also the option to include your Public Liability cover in a Business Insurance pack.

The beauty of Business Insurance is that it can be tailored to suit the individual needs of any given business. For instance, the cover options needed to protect a business operating within the food and beverage industry will be entirely different to those required by a sole-trader business operating within the professional services industry.

One of the most common questions asked by business owners is: “How much does Business Insurance cost?” This is a difficult question to answer because there are so many different factors that can influence the cost, including:

  • the type and number of cover options taken
  • the nature of the business
  • the value of the property insured
  • where the business is located

For this reason, we have decided to focus on the average cost of Business Insurance for retailers and food businesses, by analysing BizCover policies sold during the 2017/2018 financial year. Our sample was made up of 790 and 942 businesses respectively.

How much do retailers pay for their Business Insurance Pack?

The average cost of a Business Insurance package for retail business is $96.43 per month, with 32.5% of our customers paying between $76 and $100 per month. The full breakdown can be seen below.

*Data based on NSW BizCover customers

Most popular cover options taken out by retailers

Looking at the below graph, it is clear to see that Public Liability insurance is the most popular taken out by retail businesses at 91%, followed by Contents, Glass and Theft cover.

Public Liability is an essential form of cover for retail businesses 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.

Click here for a full explanation of the different cover options available from BizCover.

*Data based on NSW BizCover customers

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 $132.75 per month, with 36.4% of food businesses paying somewhere between $101 to $150 per month. The full breakdown can be seen below.

*Data based on NSW BizCover customers

Most popular cover options taken out by food businesses

Like retailers, Public Liability insurance is the most popular cover options taken out by 96% of food businesses, as this is one of the highest risk areas for these types of businesses, with claims resulting from scenarios such as injury to third parties, including slips and falls to illness caused by food poisoning.

Contents and Glass cover are the next most popular cover options, with 83% and 68% respectively. Although only taken out by 32% of food businesses, Business Interruption is an important form of protection to help recover loss of income if the business was forced to close due to an unexpected event, such as a kitchen fire.

Click here for a full explanation of the different cover options available.

*Data based on NSW BizCover customers