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 Ausure Pty Ltd (ABN: 94 096 971 854) (AFSL No.238433)

Latest News

High Court dismisses Business Interruption Test Case

Today the High Court dismissed appeal by Insurers on the Business Interruption test case. Even the big insurers make silly mistakes! But you the policy holder may benefit if you were one of the 40% of Business Pack policy holders that added Business Interruption cover to their Business Pack. While it was never the intent of insurers to cover policyholders for the loss of income from a pandemic, the fact that insurers never factored in a risk premium for it, and the fact there is supposed to be a material or physical loss to trigger the Business Interruption section, none of that matters according to the highest Court in the land. So what was the mistake? Simply that when insurers defined what they considered to be the definition of an infectious disease, they referred to the Quarantine Act of 1908 which since was superseded by the Biodiversity Act of 2015. Because the Quarantine Act of 1908 no longer exists, apparently you cannot draw on this for a definition of an infectious disease? Not one of the insurers picked up on this! Shows how much interest we take on the business of Governments, except what is reported in the media.

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Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

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