Insurance Ideas

Common types of business insurance

In addition to the compulsory insurances, there are many options available to protect business assets and income. These include:

• Professional indemnity insurance: protects businesses from the costs of legal action taken against them by people who suffered losses when relying on their professional advice or services.
• Property insurance: covers damage to buildings and other properties caused by accidental damage or pre-approved ‘insured events’
• Public liability insurance: covers legal costs and compensation if a business is found to be liable for a member of the public’s death, injury, loss of property or economic loss
• Product liability insurance: covers legal costs and compensation if a business’ products are found to cause damage, injury or death.
• Theft and burglary insurance: covers losses sustained when someone steals from a business or damages their property while trespassing (this does not usually cover stolen cash)
• Money insurance: covers cash which is stolen from a business.
• Commercial vehicle insurance: third party insurance is required, but can be upgraded to cover property damage, fire and theft or be fully comprehensive.
• Tax audit insurance: covers costs which may be incurred by a business when the ATO conducts an audit or tax investigation.
• Business interruption insurance: covers losses a business sustains when they cannot continue work due to an insured interruption, which typically includes flood, fire and weather events.
• Stock insurance: covers businesses for losses they incur due to stock deterioration and spoilage.
• Glass: covers the cost of replacing external and internal glass.
• Employee fraud insurance: covers losses sustained due to the fraudulent or dishonest actions of an employee.
• Machinery/Equipment insurance: covers replacement or repair of machinery and equipment in the event of a breakdown. Some policies also cover damages sustained due to those breakdowns.
• Property in transit insurance: covers losses sustained by a business when their assets, equipments or products are in transit.
• Computer and electronic equipment insurance: covers losses sustained due to accidental damage to either computer hardware, electronic equipment or data