Business Insurance Explained – The Nitty Gritty
Business Insurance provides protection for your business premises and contents
a) for material damage losses suffered from an unexpected event like a fire, theft, and accidental damage.
b) for financial loss as a result of a business interruption through a material damage claim
There are many different types of Business Insurance cover options, each designed to protect different areas of a business’ operation. Simply select which cover options which are important to your business. The options include:
Building Insurance which covers any physical buildings which you may own against fire and perils.
General Property Insurance which covers against theft and accidental damage of equipment, such as tools, laptops and mobile phones whilst you are away from your office.
Office Contents Insurance which covers against burglary, theft and accidental damage of office equipment, such as chairs, desks and computers.
Public Liability Insurance which covers your business against the legal costs of a claim for injury or damage to the property of others that occurs while you are providing a service, either at your workplace or another location.
Glass Insurance which covers the loss or damage to the glass within your premises, this could be internal or external.
Tax Audit Insurance which covers fees of any accountants engaged in connection with an audit by the Australian Taxation Office.
Business Interruption which covers you for loss of income due to material damage within your business.
Do I really need Business Insurance?
If your business has premises, you have purchased items in order to run your business (onsite or offsite) or you have stock items, then you need to protect these with the right Business Insurance cover:
- Businesses that own stock &/or fixtures and fittings and contents
- Consultants that use portable valuables like laptops/iPads
- Property owners
- Example occupations: Restaurants, Shops, Accountants, Repairers, Small Manufacturers etc.
Could this happen to your business?
It’s easy to say ‘expect the unexpected’ but there are times when even the most prepared business person is left floored by the brevity of criminals and the power of Mother Nature.
Here are a couple of claims examples:
An unwanted trade:
A tradie working on a commercial building locked up his excavator before leaving the worksite at the end of the day. The next morning when the site was opened his machine worth $42,000 was nowhere to be seen. A double whammy – no excavator and potentially a contractual penalty for delaying the work. The insured’s claim was dealt with quickly and he was able to purchase another excavator in time to avoid all penalties.
A flood of claims:
Heavy rainfall and flash flooding caused severe damage to a café owners business. The owner was forced to close his business and repair the damage. The insured’s policy covered this sort of damage and the business owner received $6,000 for building contents, $4,500 for loss of income, $600 for lost wages, $16,450 for repairs and $470 for the appraisal cost.