Business Insurance Package [Business Insurance Broker Toowoomba]
What is business insurance?
Your business can take years of hard work to establish but that could all be destroyed in minutes by an unexpected disaster or a simple accident. You could help protect all that you have built with a quality business insurance broker toowoomba. By utilising the right combination of cover, you can run your business with the confidence that your stock, equipment, premises, reputation and your personal assets are all protected.
Who should consider it?
Business owners can protect their business and livelihood by taking out a comprehensive and economical business insurance package to assist in protecting them against a range of risks involved in the operation of a business. By having the right mix of insurance, you can help protect your business, your customers and your income by minimising its exposure to risk. This may include insuring your business, your income and your commercial risk.
Did you know?
“Having the right insurance will help protect your business and minimise its exposure to risk. This may include insuring your business, your income and your commercial risk.”
Department of Innovation, industry and science, 2018
The cost of natural disasters to Australian business, government and communities is estimated to reach $33 billion by 2050.
(Australian Business Roundtable, The Economic Cost of the Social Impact of Natural Disasters, 2016)
According to Inside Small Business, only 16% of SMEs have a financial back-up plan in place, while 35% said they’d need to cut spending and limit their lifestyle if they were unable to work.
(Inside Small Business, ‘Seven insurance issues small-business owners should consider in 2017’, 2017)
Sole traders were the least likely of businesses to be insured, (24%), followed by small businesses operating from home (21.4%).
(ICA, Non-insurance in the Small to Medium Sized Enterprise Sector, 2015)
What can it cover?
Business insurance packs can offer general protection for a business, which may include cover against:
|Type of cover
|Repair or replacement of property damaged in the event that your insured property is damaged by events including, but not limited to fire, lighting, cyclone, storm, malicious damage etc. Flood cover can also be provided as this is generally not included as standard.
|Loss of trading profit following insured damage to property and additional costs and expenses incurred during a claim. This type of insurance is often misunderstood and All Star Insurance can specifically review your Business Interruption calculations to ensure that you will be covered for all your insurable expenses plus net profit. A well-structured Business Interruption policy can include cover for loss of income arising from events including damage to supplier or customer premises, utility (electricity) suppliers, premises in the vicinity (shopping centre) and cyber events. It is important to note that loss of income due an uninsured or excluded event, is not covered by Business Interruption, ie; if flood is not insured and a flood event occurs, any subsequent loss of income is not covered.
|Repair or replacement of property stolen (excluding money) which may be lost as the result of theft consequent upon actual or attempted forcible and violent entry upon the premises or by a person felonious concealed on the premises. There are common exclusions such as shoplifting.
|Loss of money insurance provides coverage for loss or theft of money at business during and outside business hours, in a safe (24-hour basis), in transit and a private residence. The need for this type of coverage has reduced in recent years due to more transactions completed by electronic methods.
|Public or products liability
|Provide coverage for your liability to pay compensation for third parties, including personal injury and property damage arising from your business activities. Coverage can also include the costs involved in defending a claim triggered by the policy. These types of policies are provided with exclusions, including injury to employees, damage or injury from registered vehicle and injury from materials such as asbestos and therefore it is important that you discuss your particular needs.
|For replacement of glass inside or outside your premises, including your shopfront windows, mirrors or display cases. Additional benefits can be provided such as damage to the window frame or temporary shuttering. This type of cover commonly has exclusions such as chipping of glass or where there is not a complete fracture of the glass.
|Coverage for stock that is in transit on the road, in the air or by the sea. Available as single transit policy or an annual good in transit coverage.
|Electronic equipment breakdown
|For repairing or replacing electronic equipment that breaks down. This should also be considered for mechanical equipment that incorporate a significate component of electronic equipment, such as CNC machinery, that is vital to the operation of your business. Although your equipment will have a warranty period, you need to consider if power surge or operator error are covered as both are common exclusions in warranties.
|Cover for loss of income and increased costs due to manufacturing downtime associated with machinery breakdown. It is important to note that many standard Business Interruption policies will exclude coverage for Business Interruption as a result of breakdown, therefore a separate Breakdown policy will be required if this type of coverage is essential to your business. The type of cover, dollar limits and number and level of exclusions can vary greatly between policies, we can assist in tailoring a policy to your requirements.
|To cover your tools of trade, including laptops and tools that you use for your profession or trade, also known as Portables insurance or Special Risks insurance. This coverage is for property lost or damaged anywhere in Australia. Standard exclusions are based on the type of item being insured, or the type of loss incurred. Policies can require certain items to be listed before coverage is provided, such as photographic equipment. For theft coverage to be provided under these type of policies, forcible entry to the premises or vehicle is generally required.
|To provide coverage for the cost of additional accountancy fees as a result of a regulatory audit. These audits can be initiated from various sources including ATO, or ACCC. It is important to note this insurance does not cover any fines or penalties imposed.
|Coverage for direct financial loss to the business as the result of dishonest or fraudulent employee conduct which is first exposed during the period of insurance.
What usually isn’t covered?
Exclusions, and the excess you need to pay, and limits of liability can vary greatly depending on your insurer and the requirements of your business.
Rohan owns a shop in the city. One night a water pipe bursts, flooding the building and damaging his stock. Even worse, the building must be evacuated and renovated to repair all the water damage. This means that Rohan is unable to trade for six weeks.
Rohan’s business insurance covers the cost of the renovations. And, because he has business interruption insurance, he receives a payout to cover the income lost while he’s unable to trade.
A product disclosure statement (PDS) is available from us. You should consider the PDS in deciding whether to acquire, or continue to hold, business insurance.
For professional advice on Business Insurance placement solutions, please contact All Star Brokers.
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