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3 Things To Look For On Your Business Insurance Quotes

No matter whether you’ve operated a successful business for years, or you’re an eager startup, the energy and hours you’ve put into your enterprise are worth honouring. This is why you shouldn’t risk wasting all the blood, sweat and tears by not having the right cover in place to protect your valuable assets from the unexpected.
But many small business owners aren’t too sure about which insurance broker to choose and what things to look for in a business insurance quote.
So before you begin to compare business insurance policies, it’s important to fully understand what cover your particular enterprise needs and your financial situation.
Why? Because even if they’re in the same industry as yours, what works for one business might not work for another.
What is business insurance cover?
Insurance for your business means both you, your workers and your enterprise can be protected against financial difficulties that may arise from your legal liability. You may be sued if a customer is injured or incurs losses by using your products or if anyone is injured or has property damaged due to your negligence. It could be as simple as someone slipping on a wet floor. You may be able to be covered for their medical bills, rehabilitation and legal costs.
Business Insurance offers other policies that could also cover you for machinery or equipment damage, theft, or breakdown.
If your business offers financial or other advice or service and a client is given incorrect or omits advice, they may make a claim against you, you need to ensure you have a tailored insurance policy specific to your business needs.
We offer a Business Interruption policy. This type of insurance is incase your business comes across unforeseeable circumstance and required to be closed. An example of this type of insurance could be if customer data is stolen, or you sustain a cessation in your business activities due to interruptions e.g. if you cannot oprate as a result of a natural disaster, you are covered.
1. What’s the difference between insurances?
Different businesses require different coverage at different costs. A business insurance cost depends on the industry with which your business is involved. For instance, a hospitality business is unlikely to need farm insurance for livestock and bulldozers.
But for some small businesses or large concerns that employ workers, some business insurance products like workers compensation insurance and public liability insurance are compulsory for Australian businesses. Third-party personal injury insurance (CTP) for motor vehicles is also compulsory.

Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

Purchase up to six products under one Business Insurance Package. 

But for some small businesses or large concerns that employ workers, some business insurance products like workers compensation insurance and public liability insurance are compulsory for Australian businesses. Third-party personal injury insurance (CTP) for motor vehicles is also compulsory.
Many business owners opt for a business insurance package, which caters for the differences. For example, a business located in an office block might need professional indemnity cover for an interruption to the business operations that results in a financial loss.
Tip: As a business owner, whichever provider you choose from any of Australia’s leading insurers for your business insurance policy, always closely read their policy wording or Product Disclosure Statement (PDS) so you know precisely what you are buying before you sign on the dotted line for your small business insurance.
2. What should I look for in my business cover?
The questions you have to ask yourself when comparing insurance quotes for an Australian business include:
  • Would I be compensated by full or part market value or an agreed amount?
  • Are there lifetime limits on claims, or an annual payout limit?
  • What are the things that can void my claim?
  • Is there a limit per claim?
  • Exactly what am I covered for by the amount of premium paid?
Getting a clear answer to these questions can help you decide whether the business insurance work done by your insurance company and the policy chosen to cover your business assets is best for your business or not.
3. What types of business insurance are there?
Apart from the compulsory insurance mentioned above like public liability cover etc. and depending on your industry, the following covers for an Australian business may include:
This covers you and your business if you provide professional advice.
You need to protect your business from loss or theft of client information due to data breaches resulting from cybercrime.
Management liability
If you face a claim for alleged or actual mismanagement by the business, officers and directors and officers you will be glad you have this insurance.
Personal accident and illness
This insurance is self explanatory and offers income support if you cannot work due to an injury or illness.
Business insurance packs
Depending on your industry, a package may include:
This covers your stock electronic equipment and other business content against events such as floods, fire, theft and storms.
If you own your business premises this may cover the costs of repairs or rebuilding as a result of natural disasters or events such as storm damage, floods or fires.
Business interruption insurance:
Can provide cover on your financial situation by insuring you against lost income and operating costs that result from an interruption to your business.
Employee fraud:
Covers any loss incurred by employee fraud or theft.
Property in transit:
Covers theft or property damage to tools or equipment carried by road anywhere in Australia in a vehicle owned or operated by your business.
Depending on your policy, glass cover can include accidental breakage to both external and internal glass.
Machinery breakdown:
For losses due to breakdown and in some cases stock deterioration.
Tax audit:
Pays costs of outside accountants responding to a business tax audit.
For the right insurance for your business, contact us at Adroit
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Adroit Insurance & Risk, ABN 75 078972 700, AFSL 244 348

This article originally appeared on Adroit Insurance & Risk Blog and has been published here with permission.

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