Insurance

Insurance protects businesses in the event that something goes wrong. There are many types of business insurances which may be of benefit, depending on the industry, the type of business and the size of their operation. There are two types of insurance which are compulsory for Australian businesses: worker’s compensation and compulsory third party insurance.

Workers’ compensation

Every state and territory protects employees in the event of an accident or sickness by offering workers compensation. As the states are free to determine their own regulations in this area, businesses must refer to the government resources which apply in their jurisdiction:

• ACT: www.worksafe.act.gov.au
• NSW: www.workcover.nsw.gov.au
• NT: www.worksafe.nt.gov.au
• QLD: www.workcoverqld.com.au
• SA: www.workcover.com
• TAS: www.workcover.tas.gov.au
• VIC: www.worksafe.vic.gov.au
• WA: www.workcover.wa.gov.au

Compulsory Third Party (CTP) Insurance

Compulsory third party insurance covers claims made against a person or business for personal injury resulting from the use of a company vehicle. CTP insurance is required to register a vehicle, though most businesses choose to take out a higher level of insurance which covers damage to property or damage to their own vehicle..

Each state has their own compulsory third party insurance regulations:

• ACT: http://www.treasury.act.gov.au/compulsorytpi/index.shtml
• NT: http://www.tiofi.com.au/wps/wcm/connect/tio/website/mac/
• QLD: www.maic.qld.gov.au
• SA: www.mac.sa.gov.au
• TAS: www.maib.tas.gov.au
• VIC: www.tac.vic.gov.au
• WA: www.icwa.wa.gov.au

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