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)

Latest News

Ransomware a threat

You sit down at your computer to check your email. It is Christmas time and you are getting notes from many different delivery companies saying that a package was unable to be delivered to your home. Please click on the reply button (link) to advise where or when the parcel can be redelivered.

It looks authentic, you have no reason to believe that it simply advice about collecting yet another parcel in time for Christmas. The company named is well known and reputable. Admittedly the email address looks a little strange. However, you also know there are many new domain names and extensions now, You click on the reply button…

Before you know it, your computer has downloaded a version of “Crypto-locker”. Your first thought is that expensive Anti-Virus software should have picked it up, but they can only pick up viruses they know about. This brand new release of “Crypto-locker has locked up your screen and is demanded $1,000 worth of “Bitcoin”. What the hell is Bitcoin?

The fact is Australian businesses are increasingly at risk of attack by malicious ransomware software. Hackers have moved on from targetting government and banks, and are now going after small targets on a wide scale.

They are setting small amounts because small business works out that it is cheaper to pay the Ransom than hire an IT expert to fix up the problem.

Ransomware is software that infects a user's computer or network, locking access to files until a sum of money is paid. Crypto-locker is an example.

For now, Cyber Risk Insurance is available and if your Insurance Broker or Adviser has not yet discussed this with you, then contact us.

This is a real threat to your business, can affect your income and Brand reputation. Just like other Liability policies, you should not take the risk un-insured because it can wreck a business.

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Above-average cyclone season looms

Insurers should brace for an above-average cyclone season due to weakening La Nina conditions in the Pacific Ocean and warmer than average sea temperatures to the north and east, according to the Bureau of Meteorology.

The cyclone season begins next month and ends in April.

The bureau says Australia has a 67% chance of an above-average season, while the west has a 59% chance, the northwest 63%, the north 56% and the east 58%.

In neutral years the first tropical cyclone to make landfall typically occurs in late December, while in La Nina years it usually hits in the first week of December, the bureau says.

Insurance Council of Australia spokesman Campbell Fuller says even an average cyclone season – consisting of 11 events, four of which make landfall – can be devastating.

“An above-average year could bring many more than that, and each one has the potential to cause catastrophic damage if it crosses the coast in a heavily populated area,” he said.

As reported by insurancenews.com.au

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