What Types Of Business Insurance Are Available In Australia?

Owning a business can be a challenge for a multitude of reasons, and often that involves a level of risk. As a business owner, there is always some amount of uncertainty. Having an insurance policy for your business is integral to reducing business risks, protecting your employees, your customers and your livelihood.

Understanding your rights and responsibilities as a business owner in Australia is key when deciding your insurance policy. The type of business and what state you trade in all determine what insurance you require to protect you against legal liabilities.

Here we’ll break down the types of business insurance available in Australia, and help you find the right insurance to meet the needs of your industry.

What is business insurance?

As of June 30th, 2021 there were 2,402,254 actively trading businesses in the Australian economy. With that amount of individual businesses operating in the country, there is no doubt that Australia’s commercial insurance market is the 10th largest in the world.

Business insurance protects your business from different types of risks involved with owning and operating a business. If your employees get sick or injured, if a customer has an accident on the premises, or if key equipment is stolen or destroyed; the correct insurance policy protects you from these risks and the high costs of legal action.

Why is insurance important for all Australian small business owners?

The past two years have been incredibly challenging for Australian businesses owners, with numerous state-wide lockdowns, there’s never been a more uncertain time to own a business. No matter the size of your business, one key risk management tool is business insurance. Having the right insurance for your company can protect

• Your property

• Your staff

• Your equipment

• Your wage

• Your reputation

What are you at risk of if your business isn’t insured?

If you decide not to insure your business, you may run into an array of issues.
In most states, some types of business insurance are compulsory by law.

If you have employees, your rights and responsibilities as a business owner change when it comes to the type of insurance that’s mandatory.

For example, Workers’ compensation insurance is compulsory if you have employees, and protects your staff if they become sick or injured due to your business. This policy covers your employees wages if they are not fit to work and covers the cost of medical expenses.

What about optional business insurance?

Other types of business insurance available in Australia may not be compulsory, however you could be at risk without.

While Public Liability Insurance isn’t mandatory by law for most businesses, it is arguably the most important policy to consider. Liability Insurance covers you from third party injury, distress or death caused by your business and without this, your business could be liable for large sums of compensation or legal fees.

If you own a commercial or residential property for your business, purchasing property insurance is integral. This cover includes buildings, stock, contents and customer goods. These items are covered against fire, water damage and other hazards.

Money Insurance protects you from funds stolen from your businesses, while in transit or on private premises and covers cash, checks, currency notes, postal orders and current postage stamps. Without this insurance, your financial assets aren’t protected.

If your business relies on the operation of machinery to trade, you may want to consider purchasing a Machine Breakdown cover. This policy protects your business from unforeseen loss when equipment malfunctions. If you choose not to insure your equipment, the expense of replacing machinery and stock would be out of pocket.

Theft to your business is a very real risk and can cost you money and time. Without Burglary Insurance, you aren’t protected from the costs of stolen equipment and inventory.

If there were any losses or damages caused by fires and floods at your business premises, then your income would probably suffer. If you suffer a loss due to this, Business Interruption can help pay for any lost revenue.

Most leases require tenants to insure glass in buildings they rent. Glass insurance covers both internal and external glass during the lease period. If you choose not to purchase this cover, you may be liable for the cost of repairs and breach your lease agreement.

In the age of the 21st century, electronic equipment is heavily relied on to run a business. Unforeseen or sudden losses to electronic systems can cause serious problems for businesses and restoration costs for data loss can be very expensive. Without Electronic equipment insurance, the costs of data restoration costs can be extremely high and detrimental to the functioning of a business.

How do I know what insurance my business needs?

Looking at each type of insurance is important to consider and proper research is necessary so you can understand if it is necessary for your business needs. Our qualified team here at Steadfast Eastern can also help guide you through the process and help you determine the type of insurance best suited to your business.
We understand how important it is for you to receive the right information regarding your insurance and what policy is right for your business.

As Australia’s largest general insurance distribution centre, we insure businesses, no matter the size all across the country. We’re here to listen to your needs and guarantee your business and livelihood is protected.

For a professional business insurance quote or more information on what coverage your business requires, contact Steadfast Eastern.