Are you wondering what business insurance is for? Find out more about the types of cover available here with Savvy.
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There are many different forms of business insurance available, so you may be wondering what the differences are between them and what they’re all for. You can take a deep dive into business insurance and its purposes right here with Savvy. You'll be able to look at all the forms of business insurance available in Australia and find out what they’re for right here. Get your business insurance queries answered with Savvy today!
The purpose of business insurance is to help businesses manage risk by providing financial protection against a wide range of possible events or circumstances. Without insurance, businesses are vulnerable to losses which could cripple their operations and potentially lead to bankruptcy.
Business insurance is a vital aspect of running any business. It’s a safety net which helps protect a business and its assets from unforeseen events. Business insurance covers a range of liabilities and risks that a business may face, such as theft, natural disasters or a variety of accidents. It’s designed to cover the costs of things like property damage, legal fees and other costs associated with incidents which can negatively impact a business.
Insurance provides a range of benefits to businesses, including:
By purchasing insurance, businesses can transfer a greater portion of the financial risk associated with unexpected events which are covered by their policy to an insurance company. With insurance, businesses can protect themselves against financial losses and continue to operate with confidence, knowing that they’re covered against a range of events included in their policy.
These are some of the different types of business insurance available in Australia:
Public liability insurance
Public liability insurance can protect a business and its staff against legal action in the event a third party is injured or their property is damaged while on the business premises or as a result of your activity. This includes another person's property that was in the business's care or possession at the time it was damaged. It’s another form of insurance which may be compulsory in certain circumstances, such as if you wish to hold a public event like a concert, performance or market.
Product liability insurance
Product liability insurance can protect a business against claims that its goods are faulty, dangerous or caused harm to a third party. This can include an allegation of food poisoning at a restaurant to a building collapse due to the steel or concrete supplied for the foundations. It’s essential to note that a business can still be found liable for supplying a faulty product even if it didn’t manufacture the product itself. The business can be found liable if it packaged, advertised or retailed the product on behalf of the manufacturer.
Professional indemnity insurance
Professional indemnity insurance is a must-have for those whose line of work includes giving advice or performing a service. It can protect professionals from being held liable for damages and cover the expense of defending themselves in court against claims of negligence, omission or breach of duty while doing their job. This can include anything from unsuccessful surgery to giving financial or legal advice that turns out to be incorrect.
Small business insurance
Small business insurance, also known as general business insurance, is a package which combines several types of insurance coverage into one policy. The specific coverage included can vary depending on the policy, but common types of coverage include property damage, legal liability and business interruption. It’s a type of insurance offered as a package to small businesses which covers the cost common types of insurance required.
Commercial property insurance
Commercial property insurance is a type of insurance which can safeguard the owner or landlord's building, contents and rental income against various risks such as theft, fire, and storm damage. Other names for commercial property insurance include property owners’ insurance, commercial landlord insurance and commercial building insurance.
Business contents insurance
Business contents insurance covers a business's assets from events such as storms, fires, impact damage, accidents, theft, and malicious damage. If you’re renting your business premises, you may not need building insurance. However, you may still need contents insurance, which can cover all the business equipment and stock in the shop, factory or office. This can include items which may not be in the office when they suffer damage, such as laptops and other mobile equipment.
Business interruption insurance
Business interruption insurance can cover workers' wages, utility bills and the cost of relocation and rent if the business is unable to earn revenue due to an insured event such as a storm, fire, flood or impact. It can offer protection to the business and help it recover from a catastrophic event which would normally prevent it from operating.
Cyber liability protection
Cyber liability protection can cover a business' online systems and data from cyber attacks, which could involve a hacking attempt, the business website being defaced or stolen, client data compromised or a ransomware or data hijack attack. Cyber liability insurance can cover the cost of repairing the damage, retrieving the stolen data and defending the company's reputation through legal action or investigation if it suffers such an incident.
Management liability insurance
Management liability insurance is designed to protect businesses and their executives from legal actions taken against them by shareholders, employees or other third parties due to alleged wrongful acts in their roles as directors, officers or other executives. This type of insurance can cover legal fees, settlements, and judgments resulting from claims related to mismanagement.
Workers' compensation insurance
Workers' compensation insurance is a compulsory form of cover for employers. It can cover the cost of workers' wages if they’re unable to work due to an injury or illness sustained while working. It can also provide compensation if a worker suffers a permanent injury or death due to a work-related incident. This insurance can cover the cost of rehabilitation and any modifications needed to the person's home or office to assist them in coping with a permanent disability.
The specific types of insurance your business needs will depend on several factors, including:
Additionally, you can follow this process to help you determine what type of business insurance may be the most suitable for your needs:
Find the best possible insurance coverage for your business quickly and easily here with Savvy's 100% free comparison service.
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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.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
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© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
