Business Insurance Packs

Business Insurance Packs

28 July 2022

Micro (0 - 4 employees) and small businesses (5 - 19 employees) make an enormous contribution to our Australian economy. According to the AustralianBureau of Statistics 20/21 data, they account for 42% of private sector employment and contribute $1,226.85 billion or 33% of private sector income. That’s pretty impressive.

If you’ve spent time, energy, and an enormous amount of effort to operate your micro or small business then it makes sense to protect it properly.

Protecting your small business

A Business Insurance Pack can be a great option for a small business. It allows you to have an affordable and comprehensive insurance program to protect your business from the main business risks faced by smaller business operations.

The other main advantage for time-poor small business owners and operators is that you’ll have one major insurance policy to manage and think about. It makes insuring your business one less thing to worry about.

What is covered?

The common insurances that can be included in a business insurance pack are:

  • Public Liability Insurance - There are various levels of liability insurance depending on your business and provides for compensation for third-party personal injury and property damage.
  • Property Damage – This insurance covers damage to buildings, contents and stock, or specified property, caused by fire, perils and accidental damage.
  • Business Interruption Insurance (BI) – BI covers shortfalls in gross profit following loss from events such as fire, money, burglary and glass damage.
  • Machinery or Electronic Equipment Breakdown – As the name suggests, this insurance covers damage to machinery caused by breakdown or damage - refrigerated or frozen goods can also be covered against deterioration.
  • Theft of property or money – Theft of business contents or stock, or theft of money happens regularly in small business and this insurance covers the business for this.
  • Theft or dishonesty by employees - This insurance covers fraud or dishonesty by your employees.
  • Damage to glass – For replacing glass inside or outside your premises including shop front windows, display cases, mirrors and signage.
  • Tax audit by government – This insurance covers the costs incurred by your accountant or registered tax agent (after receiving notification from the Australian Tax Office) in conducting an audit or investigation into your taxation obligations.

What is not covered?

If you have employees or contractors, by law, you will also require Workers’ Compensation insurance.

The information your broker needs to tailor your Business Insurance Pack

To ensure comprehensive coverage of your business risks, your insurance broker will need to know the following:

  • A thorough understanding of your business operations
  • Your annual turnover
  • Your insurance claims experience

Your business insurance broker will work with you to tailor the insurances to meet your specific risk exposures. They will discuss the exclusions, the excess you will need to pay and the limits of the liability. Not all insurance covers are the same, and Business Packs can vary greatly from insurer to insurer. Your broker will ensure you understand these differences and find the best solution to meet your needs.
And remember, our brokers at Austral Risk Services are here to help. If you have any questions at all, please do not hesitate to ask. Jon Steward and our Austral team are here to support you every step of the way.