Business Package Insurance
What is a Business Insurance Package?
Many Insurers have packaged their cover into one Business Package for small to medium-sized businesses. Larger Companies with combined assets usually above $5,000,000 will normally need an Industrial Special Risks (ISR) policy.
A problem is that Business Package Insurance policies vary with each Insurer sometimes significantly, while an ISR is a standard wording varied by endorsements. An advantage of choosing an Insurance Broker is that they can seek the most suitable cover for you at the best possible price.
The basics of a Business Package Insurance policy cover are:
- Fire– covers fire, lightening, explosion, storm damage, aircraft, water discharge and malicious damage
- Accidental Damage– a sub-limit covering any kind of loss not specifically excluded
- Business Interruption– covers the loss of turnover you are unable to make following an insured event
- Burglary– covers theft and burglary including damage caused by a break in to your premises
- Glass– accidental breakage of fixed glass or porcelain
- Money– loss following robbery from your premises or whilst in transit
- Public/Products Liability– covers bodily injury or property damage you cause to a third party
- General Property– covers mobile equipment and tools of trade away from your premises
- Machinery Breakdown– repairs to mechanical equipment following sudden damage
- Electronic Equipment Breakdown- repairs to electronic equipment following sudden breakdown.
- Transit– Fire, flood, collision and overturning of your goods moving around Australia
- Tax Audit– Covers unexpected additional professional fees if the ATO suddenly audit your business
- Employee Dishonesty– covers loss caused by embezzlement by your staff
- Vehicle Insurance– some packages include Motor Comprehensive cover for car accidents and theft
Things to remember in Business Package Insurance Policies
Watch out and discuss with your Broker some of the following issues:
- “Average clause” which may only pay a proportion of your claim if under-insured
- Full Reinstatement/Replacement conditions – sometimes called “New for Old” rather than Market value
- Stock is different to Contents though some packages combine it. Make sure you apportion correctly
- Remember the extra costs you incur and not just your actual loss ie Removal of Debris, Professional Fees, Extra costs to Reinstate (council by-laws). These are often under-insured
- Never under-estimate the value of Business Interruption cover. It can be the difference between survival for your business or oblivion when you cannot generate income from your lost assets
- Burglary cover does not include cash or negotiable instruments. For this you need the Money section
- Good Security can keep rates down for the Burglary and Money sections
- Get a regular valuation of your Buildings insured for its rebuilding costs and factor in escalation for future costs including if a widespread catastrophe where labour and supplies can be in short supply
- Read more about Under-insurance here
Who can help?
An insurance broker's role is to act as your representative and work in your interests, seeking the best cover at the best price for you with their skill, market knowledge and experience. Call a good one.
Call CPR – Experts who will save you
Cooper Professional Risks Pty Ltd trading as CPR Insurance Services is an Authorised Representative of National Adviser Services Pty Ltd (ABN: 60 096 916 184) trading as NAS Insurance Brokers (AFS No.233750)