Business Insurance ACT

Business insurance policies are designed to more closely cover unexpected circumstances which may affect businesses and could otherwise leave them out of pocket. It’s important to understand the differences between the array of business insurance policies available in the ACT and Australia, which offer cover in diverse areas (subject to insurer qualification criteria). These 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. In terms of the available covered amount under this type of policy, you can typically choose between $5 million, $10 million, $20 million or a larger sum by individual negotiation with certain insurers.

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. The claim limits under this type of policy can also range from $5 million to $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, or general liability insurance, is an insurance package which can offer coverage against other risks, such as those facing your physical business premises and assets.

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 an insurance package, you may also be able to include such policies as public liability and professional indemnity cover, as well as some of the following:

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. This is delivered in the form of an ongoing benefit, which may be valued at up to 85% of your salary (depending on how much you earn and your insurer’s terms and conditions). This can be paid to you over a benefit period of your choosing, typically either a maximum of one or two years, while the waiting period which applies varies from seven to 28 days.

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