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Business Equipment Insurance

Compare quotes for business equipment insurance here with Savvy to make sure the tools and equipment you use are protected.   

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, updated on July 17th, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

As a small business owner, you know how valuable all your tools and equipment are and how important they are to the running of your business. For this reason, it’s vital to make sure your business equipment and the things you rely on every day are protected in case anything goes wrong, which is where business equipment insurance can come in handy.  

Whether you want to insure the tools of your trade or your business stock, comparing online quotes right here with Savvy can help you find the best deal to cover your equipment. Start the process to get your business protected with us today. 

What is business equipment insurance?

Equipment insurance is a type of business insurance in Australia that covers the things which you use every day in your business to make money. It will cover the cost of repairing or replacing them if your business should happen to suffer an insured event such as a fire, storm, theft or impact event. It covers items you own, but also rental equipment which you may be using.  

Business equipment insurance can be offered as a standalone policy or, as is frequently the case, as part of a business insurance package. It may also be included in general business or contents insurance policies. Whether you need equipment insurance on its own will very much depend on the type of business you’re running, and what equipment you have which needs insuring. If you don’t have much specialised equipment, a general business insurance policy which includes equipment insurance may be what you need.  

For example, if you’re running a butcher shop and simply have sharp knives and one cash register as your business equipment, general business insurance may be your best option. However, if you’re running a vending machine leasing business in Victoria and each machine in your warehouse is worth $25,000, you should look at getting specialised business equipment insurance which will cover the cost of each of your machines, including any that you may rent or lease. 

What does business equipment insurance cover?

Business equipment insurance in Australia covers items such as: 

  1. Plant 
  2. Tools 
  3. Machinery 
  4. Computers 
  5. Fixtures and fittings (if you’re a tenant) 
  6. Goods held by you for others (such as for repair or on consignment) 
  7. Title documents, business books, records and other vital paperwork 
  8. Electronic equipment 
  9. Cash registers 
  10. Point of sale terminals (EFTPOS machines) 
  11. Other specialist or rental equipment  

If any of these items are destroyed, damaged or lost to theft, your insurance can pay for their repair or replacement. However, equipment insurance won't cover the following: 

  1. Machinery breakdown 
  2. Wear, tear or gradual deterioration 
  3. Damaged caused by an excluded event (such as a flood, if you don’t have specific flood protection) 
  4. Rust, mould or mildew 
  5. Vermin or insect damage 
  6. Animals, crops or other living things 
  7. Computer viruses, hacking or cybercrime 
  8. Intentional damage by an employee 
  9. Switching off the power supply (whether intentional or accidental)  
  10. Any exposure to asbestos 
  11. Pollution damage 
  12. Faulty design, workmanship or installation 

It’s important to think about the new replacement cost of your business equipment when considering the level of cover which is appropriate for you. Some policies have a set limit per item claimed, such as $5,000 per insured item. Other policies come with an overall limit for all business equipment, such as $50,000 for all equipment.  

This may be adequate insurance for our butcher. However, in the case of our vending machine leasing business owner, this upper limit may not be suitable. In such a case, a specialist equipment insurance policy with higher limits may be more appropriate. 

When considering how much insurance coverage you need, first ask yourself what your business insurance is for. If it’s to cover expensive business equipment worth hundreds of thousands of dollars, a tailored policy may be your best option, with all your valuable items listed and replacement costs covered. 

For this reason, it’s important to compare a range of business equipment policies to find one that’s appropriate for your individual needs, which you can do right here with Savvy. Just by answering a few simple questions about your business and the type of cover you want, you can have multiple quotes to compare all in one place. Consider a range of offers from respected insurance companies here so you can choose the best cover for your needs with more confidence. 

Types of business insurance

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Common questions about business equipment insurance in Australia

Is equipment insurance automatically included in a business insurance package?

Often, yes – an insurance package will likely offer aspects of three types of insurance: 

 

The general business insurance element of the package will typically include cover for the equipment and contents of your business premises but, as explained above, there may be limits on how much cover is offered. As such, it’s worth checking if the cover on offer is sufficient for your needs. 

Is business equipment insurance compulsory for a tradie?

No – however, most tradies need to have insurance to cover the tools they use every day. As many tradies are aware, the theft of tools can happen, especially on a large building site, so it’s always best to have your tools and equipment insured. 

How much will my business equipment insurance cost?

This will depend on many factors, and there is no standard cost for this type of insurance. The cost will vary depending on: 

  • Your location 
  • The industry you’re in 
  • The size of your business 
  • How many employees you have 
  • The exact type of cover you require 
  • Your insurance and credit history 
Do home-based businesses need equipment insurance?

This will depend on the nature of your business and how much you have to lose if a serious event such as a fire or storm happens. For example, if you’re running a mobile business based from home offering dog grooming, the cost of your business equipment (your dog-washing trailer) may be worth tens of thousands of dollars, in which case you’ll definitely need equipment insurance.  

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Disclaimer:

Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.

Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.

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