Business Insurance and how can it protect your business?
When we think of business insurance, we probably think of building cover, contents, and public liability. While these are important, we would like to briefly discuss the most commonly used sections of the business insurance policy and relevancy.
Public and Products Liability
This is usually the first section of cover taken.There are two parts to this coverage;
Public Liability which covers the business for third party injury and third party property damage. In the white collar, professional scene this is often referred to as “slip and trip cover” as this is the most likely scenario. In the blue collar field, this often relates to onsite work injuries or equipment related damage.
We see sums insured of $10 Million or $20 Million usually. We occasionally see $5 Million however the premium difference to $10 Million is usually minimal. Usually there is a contractual obligation attached to a $20 Million or higher sum insured.
Products Liability which again covers the business for third party injury and third party property damage in relation to products that you are deemed to have manufactured in the course of your business.
Property Damage and Theft
This includes building, static contents, stock, removal of debris and rewriting of records.
It is important when considering the building sum insured to consider the cost to rebuild when accounting for current building regulations and market conditions of the construction industry.
Contents insurance includes the fit-out of the office and all furnishings. It can include portable items such as laptops however under this section portable items are only covered at the address listed (the office).
When considering theft coverage, some policies match the contents sum insured. If they don’t, the consideration is “what could a thief steal”? The answer is usually a percentage of the contents.
Glass
When signing a lease agreement, the landlord will typically ask the tenant to be responsible for the buildings’ windows and glass fixtures.
This is usually covered for “replacement value” as this can vary over time.
General Property
Portable items that are taken away from the office are covered under this section.
There are two considerations. Firstly, items up to a certain value (typically $2500) do not need to be listed under the sub section “unspecified items”. When considering this sum insured, think of the items an employee may take away from the office or multiple employees at one location.
The second consideration is “specified items”. Items over the unspecified item limit need to be listed, otherwise the maximum payout would be less than replacement value if unspecified items are selected.
Tax Audit
This covers the professional fees incurred by your business in relation to an audit, review, or investigation by the ATO or relevant agency. Typically, this would cover a forensic accountants’ expense.
There can be extensions to Self Managed Super Funds (SMSF) and individual directors in relation to the business.
Other sections of the policy include Machinery and Electronic Breakdown, Business Interruption, Employee Dishonesty and Money.
PIA’s insurance partner – Planned Cover are experienced in the placement of business insurance policies and encourage PIA members to make contact to review and discuss their risk mitigation requirements.
Visit the website
PIA members are entitled to $100 off our professional fees when you take out a new professional indemnity insurance policy, and $50 off for all other insurance products.
Visit the website
PIA members are entitled to $100 off our professional fees when you take out a new professional indemnity insurance policy, and $50 off for all other insurance products.
Planned Cover State Manager Contacts:
Richard Aumann – Senior Account Manager VIC
richarda@plannedcover.com.au
(03) 8508 5400 / 0415 304 119
Simon Gray - State Manager NSW/ACT
simong@plannedcover.com.au
(02) 9957 5700 / 0400 123 424
Karen Meiklejohn - State Manager QLD/NT
karenm@plannedcover.com.au
(07) 3017 1500 / 0417 006 896
Cos Cirocco - State Manager SA/TAS & National Business Manager
cosc@plannedcover.com.au
(08) 8363 7366 / 0438 442 870
Kylie McGrath - State Manager WA
kyliem@plannedcover.com.au
(08) 9261 1200 / 0429 338 570
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