Written by Whether you’re operating a large building company in the Adelaide CBD or a bed and breakfast in the Clare Valley, there’s bound to be a set of risks which you face as a business owner and operator. Business insurance is designed to offer a crucial safety net for a range of covered incidents, whether you’re looking for insurance for your small business in South Australia or a larger operation.
Why compare business insurance through Savvy?
Our comparison tool doesn't cost you a cent, allowing anyone to compare offers from trusted insurers around Australia for free.
You can consider the inclusions, premiums, benefits and other key factors easily with us, whether you're at home or on the go.
Considering offers from trusted insurance providers can help give you peace of mind that you're comparing high-quality policies.
We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.
What types of business insurance are available in South Australia?
Some of the business insurance types you can look to buy 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. This type of insurance generally allows you to set a claim limit of $5 million, $10 million or $20 million (though larger amounts may be available with some insurers).
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. This type of insurance may also come with claim limits ranging from $5 million to $20 million.
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. Because this is a package, you may also be able to bundle other policies such as public liability and professional indemnity together, with the level of cover dependent on the types of policy you buy.
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
There’s also a variety of other insurance types which may be included under your general policy, either for an added premium or automatically, including:
- 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. This benefit is different, as you may be able to claim up to 85% of your salary on an ongoing basis (subject to your insurer’s eligibility criteria), which you can generally choose to receive for one or two years and with a waiting period of between seven and 28 days before your benefits kick in.
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 South Australia?
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 South Australian business?
Some of the factors which may influence the cost of your insurance include:
- The industry you’re in
- Your business location
- The structure of your business
- Your business size and turnover (whether you’re a small or large business)
- The number of employees you have (if any)
- Your insurance history and whether you’ve made any recent claims
One of the most notable variables is the industry you operate in. Insurers will assess different industries based on the risk they come with of a claim being made. As an example, a retail business may expect to pay more for its public liability insurance policy than a legal firm due to the different risks relating to personal injury or illness and property damage.
Additionally, where you are in South Australia will also have an impact. Business insurance in Adelaide, such as in the city, may be more expensive than a policy for a more rural business in Port Pirie or Renmark.
How do I compare business insurance in South Australia with Savvy?
There are many areas to think about when buying your business insurance policy in South Australia, which include:
- Inclusions: determine whether the policies you’re considering offer coverage which could be useful to your business, as there isn’t much point buying one offering cover which isn’t relevant to you.
- Exclusions: by the same token, you should always try to ensure that there aren’t any specific exclusions which would leave your business out of pocket in the event of a potential risk taking place.
- Payout limits: look at the different claim limits available to see if there are any which may suit your business (for instance, under a small business insurance policy, you may not need $20 million worth of cover).
- Excesses: think about the amount you’re comfortable paying in the event of a claim, bearing in mind that larger excesses may lead to cheaper premiums.
- Cost: while cost isn’t the most important factor, it’s still crucial to compare policies to help you avoid paying more than you need to for cover.
By comparing business insurance with Savvy, you can consider competitive offers in one place and determine which member of our partner’s panel can offer the most suitable policy at an affordable price. There’s no need to visit an insurance broker or company in Adelaide; simply compare your options online and buy a policy if it suits your business’ needs.
Who may need business insurance in South Australia?
The majority of businesses operating in South Australia today will face some form of risk which, if uninsured, could leave them out of pocket. As such, some of the businesses which could benefit from an insurance policy are:
- Anyone in finance, mortgage broking or accountancy professions
- Retail businesses, including online and mobile companies
- Professionals such as architects, engineers and consultants
- Tradies, such as electricians and plumbers
- Photographers, graphic designers and artists and IT consultants
- Health professionals, such as doctors and nurses
- Allied health professionals, such as physiotherapists and occupational therapists
- Food businesses, cafes and restaurants
- Cleaners and cleaning staff
The types of business insurance
Common questions about business insurance in South Australia
Yes – in South Australia, workers compensation insurance is compulsory for businesses who employ paid workers, as is compulsory third-party personal injury insurance for any vehicles owned by your business. There may also be certain industries and professions where types of insurance, such as public liability or professional indemnity cover, are mandatory, so you should check with your industry or governing body if you’re unsure of what your insurance requirements are.
It’s important to speak with an independent financial professional if you’re unsure about what can and can’t be claimed as a tax deduction on your return. However, you’re likely to find that your business’ insurance premiums can be claimed as a deduction.
Workers compensation is a type of insurance designed to protect employees who suffer from a work-related injury or illness by covering their medical costs and wages. In South Australia, this is provided by ReturnToWorkSA, which requires employers who expect to pay $13,760 or more to workers in the current financial year (2022-23) to take out cover.
As discussed, accident and sickness insurance can offer protection in the event you suffer an accident or fall ill and are unable to return to work. You may be able to claim up to 85% of your salary over a benefit period of either one or two years and a waiting period of seven to 28 days.In contrast, income protection insurance is a type of life insurance which may grant coverage for a wider range of incidents which prevent you from working.
There’s greater variety in terms of benefit periods, which some insurers can offer for up to five years or even up to the age of 65. However, you can generally only claim up to 70% of your income as an ongoing benefit, while waiting periods may range from two weeks to two years.
Compare business insurance online
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.
