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Whole Business Coverage: Does This Type of Insurance Exist?

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As you look for suitable business insurance, you can easily get lost in a sea of options available. Business insurance is already confusing on its own. But when you add the number of insurance policies you may have to look into, it becomes even more complicated. Wouldn’t it be nice if you could purchase a single policy that covers your whole business?

Here’s the answer you’re looking for. Two types of insurance offer the umbrella protection your business requires and will benefit from. We’re talking about the Industrial Special Risks Insurance (ISR) and Business Pack Insurance.

What is Industrial Special Risks Insurance?

ISR is best for businesses with expensive assets, including the use of specialised plant or equipment. These businesses are typically medium to large in size. The primary purpose of ISR is to provide cover for property damage, including property, materials, machinery, and buildings. It also covers consequential loss of revenue for the business.

Most organisations in Australia have standard business insurance. However, it does not always have adequate cover, particularly for risks that can ruin livelihood and business operations. With the ISR policy, your business is covered for different kinds of catastrophes and disasters that can be detrimental to the health and functions of your company.

This policy covers:

Loss and damage to plant and machinery, buildings, building contents, stock, unregistered materials, raw materials
Protection for the property of employees and directors after an incident resulting in loss or damage
Loss of profits, rents, or revenue, which may or may not lead to increased expenses after the insured property is damaged
Costs and loss of earnings due to contingent damage to property of utilities, customers, and suppliers
Burglary and theft
Money damage (although embezzlement and carrier-handled money will be excluded)
Employee dishonesty
Accidental damage, including glass breakage

ISR is broad and perhaps the most flexible of all property insurance policies. Commercial businesses with insured values that exceed $5 million (may vary between insurers) will find this policy incredibly desirable.

It’s the simplified version of all insurance policies for businesses. ISR covers everything – except those that the insurer explicitly excluded. It is simple enough because you will know what it does not cover straight away. In most policies, they tell you exactly what is covered. ISR mainly specifies what is NOT covered. Of course, such an attribute can make ISR just as complicated.

But for a significant number of businesses, industrial special risks insurance is a must for obtaining a well-diversified insurance plan.

Management Liability Insurance

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.

Details Get Quote

Business Insurance

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.

Details Get Quote

Business Package

Purchase up to six products under one Business Insurance Package.

Details Get a quote!

But for a significant number of businesses, industrial special risks insurance is a must for obtaining a well-diversified insurance plan.

What about Business Pack Insurance?

Upon reading about ISR, you may not be convinced of its suitability for your business. If so, business pack insurance may be a better fit. Also called BusPacks, this policy carefully selects the most beneficial elements out of different insurance cover types. Therefore, you get complete protection against a number of risks.

Industries, such as manufacturing, wholesale and importing, office, retail, and industrial, are among those that can benefit from BusPacks. You gain the most benefit, though, if you work with brokers who will help distinguish and mitigate key risk exposures of your business. From there, the business pack insurance will be created based on your specific requirements.

BusPacks typically offer general protection, which provides cover against different disasters and unfortunate events, such as:

General Property, covering damage or loss of tools, laptops, and other portable items
Property Damage, which includes damage to buildings, contents, and stock at the premises after a sudden or unforeseen event
Theft leading to loss of warehouse goods or stock and contents
Business Interruption resulting in loss of income and added cost of working due to business interruption after calamities and sudden occurrences covered under Property Damage
Glass, for breakage or any form of damage of all eligible glass items, including external and internal glass in your premises
Money which protects the money of your business available on the premises, such as a safe room. It also encompasses money moving to and from your facilities, in your custody, or someone else in the company you trust like an employee
Electric and Machinery Breakdown, for electronic equipment (computers, faxes, and other similar items), as well as mechanical machineries like boilers and cool rooms. It may also extend to the spoilage of stock, where the cause is covered (for example, motor breaks)
Tax Audit to cover professional fees when hiring for an audit or investigation as authorised by an authority like the Australian Taxation Office
Management Liability, providing coverage for the people in the company’s management liability
Public and Products Liability to cover legal liability if your business caused injury to an employee, person, or property
Goods in Transit or Marine for covering damage to or loss of goods and supplies bought, sold, or used by the business while in transit

Which is the Better Choice for Your Business?

It’s often a tough decision to make. Both ISR and business pack insurance provide comprehensive cover, but one of them may be more fitting. We recommend choosing ISR if you have:

A complex business setup
At least $5 million worth of assets
Multiple business locations
Operations under various industries

Meanwhile, business pack insurance will work better for you if you don’t fit the characteristics mentioned above. This insurance is mostly for businesses with less than $5 million in yearly turnover.

Speak to us today to ensure you have appropriate protection for your business. We’ll help you decide whether ISR or BusPack is more suitable for you and your business operations.

Industrial Special Risks Insurance ISR

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.

Frans du Plessis, Grace Insurance, ABN 63 133 156 742, AFSL 233750

This article originally appeared on Grace Insurance Blog and has been published here with permission.