Business Insurance Tasmania

Business insurance is a type of coverage which comes in many different shapes and forms, offering a level of protection for a variety of events included under your policy (which are subject to qualification criteria and terms and conditions). Some of the main options available to Tasmanian businesses include:

Public liability insurance

Public liability insurance can cover your business if a member of the public is injured or their property is damaged as a result of your business activity, subject to the terms and qualification criteria set by your insurer. These can come with varied claim limits ranging from $5 million to $20 million or more (by individual negotiation).

What it covers:

1. Third-party personal injury claims
2. Third-party property damage claims
3. The legal costs of defending yourself

Product liability insurance

Product liability insurance may be able to offer your business protection against claims a product you supplied, whether manufactured by you or imported and sold, caused harm to a third party or damaged their property. Like public liability cover, this type of insurance can come with claim limits of between $5 million and $20 million.

What it covers:

1. Claims that a product you supplied caused sickness or injury
2. Third-party property damage claims
3. Legal fees to defend yourself against such claims

Professional indemnity insurance

Professional indemnity insurance can offer cover against claims the advice you gave or service you provided was negligent, sub-standard or caused loss or harm. It may also cover circumstances such as mistakes, incorrect diagnoses, miscalculations and breach of duty. Cover can start at $250,000 and may go up to $10 million (though more may be available by individual negotiation with some insurers).

What it covers:

1. Payment of compensation
2. Payment of damages
3. Legal defence costs
4. Cost of defending yourself during investigations

General business insurance

General business insurance is an insurance package which can offer coverage against other risks, such as those facing your physical business premises and assets. You may also be able to include policies such as public liability and professional indemnity cover under this bundle.

What it covers:

1. Fires, storms, water damage
2. Explosions and impacts
3. Accidental damage
4. Theft following forceable entry into a locked building
5. Theft of equipment which is securely attached to a vehicle

Because this is a bundle, some of the other types of insurance which you may also be able to add to your general business insurance package include:

1. Commercial property insurance (which may offer a higher level of protection for your business premises)
2. Glass breakage (which is a common business insurance exclusion)
3. Business interruption (which can cover your bills if you have to close your business while recovering from an insured event)
4. Cyber liability insurance (which can protect you from many forms of cybercrime)
5. Tax audit (which can cover some of your costs if you’re subject to an ATO audit)
6. Management liability (which can offer cover to business owners and directors against claims of mismanagement)

Accident and sickness insurance

Accident and sickness insurance can cover self-employed individuals who are injured or suffer an illness which prevents them from working and earning a living. Rather than a lump sum benefit, you’ll receive an ongoing benefit worth up to 85% of your income (provided it meets your insurer’s qualification criteria) over either one or two years, which you’re able to select from. You’ll need to decide on a waiting period of between seven and 28 days in most cases.

What it covers:

1. Loss of income as a result of illness
2. Loss of income as a result of an accident
3. Optional extras including death and disablement benefits