Written by Business insurance is essential for a wide range of Northern Territory businesses to offer a level of protection should a covered event take place and set them back a significant amount of money. It can help provide owners and operators with greater peace of mind that should circumstances occur which are included under your policy agreement, you can claim part or all of the funds back.
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What types of business insurance are available in the 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:
- Third-party personal injury claims
- Third-party property damage claims
- 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:
- Claims that a product you supplied caused sickness or injury
- Third-party property damage claims
- 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:
- Payment of compensation
- Payment of damages
- Legal defence costs
- 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:
- Fires, storms, water damage
- Explosions and impacts
- Accidental damage
- Theft following forceable entry into a locked building
- 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:
- Commercial property insurance (which may offer a higher level of protection for your business premises)
- Glass breakage (which is a common business insurance exclusion)
- Business interruption (which can cover your bills if you have to close your business while recovering from an insured event)
- Cyber liability insurance (which can protect you from many forms of cybercrime)
- Tax audit (which can cover some of your costs if you’re subject to an ATO audit)
- 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:
- Loss of income as a result of illness
- Loss of income as a result of an accident
- Optional extras including death and disablement benefits
What isn’t covered by business insurance in the Northern Territory?
There are several common exclusions which may apply to business insurance policies. These may include:
- Unlawful activity
- Criminal negligence
- Intentional damage or reckless behaviour
- Flood damage
- Asbestos-related incidents
- The effects of pollution
- Incidents which happened before or after your cover period
- Prior or existing risks which were not declared at the time the policy was taken out
How much will insurance cost for my Northern Territory business?
There are several variables which insurers will account for when determining how much your premiums will cost, including the following:
- The industry you’re in
- Your business location
- The structure of your business
- Your business size and turnover (whether you’re insuring a large or small business)
- The number of employees you have (if any)
- Your insurance history and whether you’ve made any recent claims
Different industries will come with different risk profiles for insurers, so this will be one of the most notable factors when it comes to your policy’s cost. For instance, an online business may be deemed a lesser public liability risk than one with a physical premises (though this will also depend on the nature of the online business).
Your business’ location within the NT can also impact its cost. Costs for policies in densely populated areas, such as insurance in Darwin, may be different from those for more rural businesses. It’s always important to compare your options before you buy insurance to see how much your policy may cost you overall.
How do I compare business insurance in the Northern Territory with Savvy?
Some of the key comparison points to consider when choosing a policy for your NT business are:
- Inclusions: make sure the policy you’re buying offers the most suitable coverage for your business in areas where you’re more likely to need it.
- Exclusions: of course, you should always determine whether there are any areas of exclusion which may negatively impact your business and leave you uninsured in important areas.
- Payout limits: consider your business’ needs and see whether the policies you’re looking at offer suitable coverage.
- Excesses: determine what the potential excesses may be before you buy to help you find one better suited to your situation.
- Cost: it’s always crucial to compare similar policies based on cost, as doing so could help you avoid overpaying for insurance and find a cheaper policy suited to your business’ needs.
You can compare a range of business insurance quotes through Savvy from our partner’s panel of leading companies. You can compare offers based on your business’ details and if you find one you like, you can buy your policy online with minimal fuss.
Who may need business insurance in the Northern Territory?
Most businesses will benefit from insurance in some form or another, as most will have certain types of risk they face on an ongoing basis. Some of the businesses which are likely to need at least one type of insurance include:
- Health professionals, such as doctors and nurses
- Allied health professionals, such as physiotherapists and occupational therapists
- Anyone in finance, mortgage broking or accountancy professions
- Food businesses, cafes and restaurants
- Professionals such as architects, engineers and consultants
- Tradies, such as electricians and plumbers
- Retail businesses, including online and mobile companies
- Photographers, graphic designers and artists and IT consultants
- Cleaners and cleaning staff
The types of business insurance
Common questions about business insurance
Yes – workers compensation insurance is a requirement for businesses who have employees and meet certain criteria, while third-party personal injury insurance is also compulsory if you own a work vehicle. However, there may be other types of insurance which are a requirement if you work in certain professions, such as public liability insurance, so it’s important to check with a relevant industry body if you’re unsure of what’s required.
Your insurance needs will depend on the nature of your business. For instance, if you sell baked goods out of your kitchen to the general public, you may need product liability insurance to offer you cover in the event your food causes someone to fall ill. If you make adjustments to dresses and other items of clothing which are provided to you by customers, you may need a public liability policy in case their property is damaged in your care.
Workers compensation insurance is a policy which offers protection for employees who are injured or fall ill due to a work-related incident, which can come in the form of ongoing benefits to help cover wages, medical costs, rehabilitation and more. In NT, it’s administered by NT WorkSafe and is a requirement for all businesses who employ workers under a written or oral contract.
There’s no one time period over which you should look to reassess and review your business insurance policy, but some recommend an annual review. This will help you ensure your evolving business needs remain covered and can open doors for you to upgrade your policy to one with a greater number of features or at a more affordable cost.
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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.
