Every business has assets, equipment or stock that are necessary for operation. Whether you’re running a warehouse filled with specialist equipment or a small home baking business, your business’ contents are what allow you to make money.
If an accident or natural catastrophic event damages them, though, it could have a major impact on how your business runs, as well as leave you out of pocket for repairs or replacements. Business contents insurance, also known as business equipment insurance, is designed to protect you in such cases.
What does business contents insurance cover?
There are two components to consider when looking at business contents insurance coverage: the contents themselves and the events leading to damage. Here’s what your policy can and can’t cover in relation to the equipment and other business assets:
- Fixtures and fittings of your office, shop or commercial premises, including furniture
- Tools and specialist business equipment
- Plant and machinery
- Electronic equipment like phones, laptops and computer and POS systems
- Documents, records and paperwork
- Your business trading stock
- Goods held on consignment or loan
- The building itself, such as walls, floors and ceilings (commercial buildings are usually covered by commercial property insurance)
- Cash and security documents (which would normally be held in a safe)
- Business vehicles (which are usually covered by commercial vehicle insurance)
- Any explosive materials (such as pool chemicals, for example)
- Animals and livestock
- Crops or grown plants
And here are some of the events leading to damage that your policy can cover:
- Storms, wind and lightning
- Fire
- Explosions
- Earthquakes and impact damage
- Water damage*
- Malicious damage and vandalism
- Accidental damage
- Intentional damage by you or an employee
- Wear and tear or gradual deterioration
- Machinery or equipment breakdown
- Faulty design
- Deliberate switching off of the power supply
- Pollution or asbestos discovery
- Rust, mould or mildew
- Animal or insect damage
- Computer hacking, viruses or intrusion (usually covered by cyber liability insurance)
*Not all types of water damage may be included in your coverage, such as flood cover.
How much does business contents insurance cost?
The cost of your business contents insurance depends largely on the value of the contents you’re insuring, as well as factoring in certain risks associated with your business’ industry. Here are some of the average contents insurance costs for businesses in Australia, according to BizCover:
| Industry | Ave. monthly premium |
|---|---|
| Restaurant operation | $92 |
| Clothing retailing | $92 |
| House construction | $72 |
| Plumbing and gas services | $72 |
| IT services | $58 |
| Legal service | $48 |
| Accounting service | $31 |
| Finance broking service | $26 |
Naturally, the greater the value of the contents you insure, the more you’ll pay for your policy overall. It’s always important to compare your policies before signing up, as even a few dollars per month can add up to hundreds over just a few years.
Why compare business insurance policies through Savvy?
How to take out business contents insurance through Savvy
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Work out your sum insured
Prepare an inventory of all your business’ assets and trading stock. Research replacement costs if required to make sure you aren’t underinsured (or overinsured for that matter).
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Fill out a simple online quote form
Next, complete our quick and easy quote form through BizCover, which tells them about your business, its industry, size and what you’re looking to insure.
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Compare your options
After you’ve filled out the form, you’ll see all the available policy options through the partnered insurers on their panel. Look at their coverage and premiums before you proceed.
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Seal the deal
Pick the one you like the most and purchase your policy. Once your policy reaches its commencement date, your business will be officially covered for its contents.
