Business Insurance Northern Territory

In simple terms, a business insurance policy is designed to cater to the needs of businesses more closely, whether small, medium or large. Under the business insurance umbrella, there are several key types of coverage to consider which offer inclusions in different areas (subject to your insurer’s terms and conditions). 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 most cases, you’ll be able to choose between $5 million, $10 million and $20 million worth of coverage (although you may be able to access 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. Claim limits may vary with this type of insurance from $5 million up to $20 million or more.

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. This can sometimes offer the ability to bundle other cover like public liability and professional indemnity into a single package.

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

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. Under this type of insurance, the benefit you receive is an ongoing payment which can be worth up to 85% of your income, generally for either one or two years. You’ll also have to select a waiting period, which typically ranges 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