Business Insurance Victoria

Business insurance is a form of cover which is designed to protect businesses against certain unforeseen circumstances (as outlined in your policy documentation and further subject to any qualification criteria as set by your insurer). Some of the different types of insurance available in Victoria 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 how much you’ll be able to claim, you can generally choose between limit options of $5 million, $10 million and $20 million, though higher amounts may be available through negotiation with your insurer.

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 can offer your business protection against claims that a product you supplied (whether manufactured by you or imported and sold) caused harm to a third party or damaged their property. It may come with similar claim limits to public liability cover, though this will also depend on the nature of your business and how much you need.

What it covers:

1. Claims that a product you supplied caused sickness or injury
2. Claims that a product you supplied caused damage to a third party’s property
3. Legal fees to defend yourself against such claims

Professional indemnity insurance

Professional indemnity insurance can offer cover against claims that the advice you gave or service you provided was negligent, sub-standard or caused loss or harm. Claim limits can start at $250,000 and can reach up to $10 million or more if required.

What it covers:

1. Payment of compensation to a successful plaintiff
2. Payment of court-awarded damages
3. Legal defence costs
4. The cost of defending yourself in formal investigations or enquiries

General business insurance

General business insurance (also called business owner insurance) is a package which can offer cover against a range of covered risks, such as those facing your physical business premises and assets (including portable equipment). It can also include elements of public liability, professional indemnity and product liability cover.

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

There are many add-ons available which you can purchase as part of a business insurance package, which include:

1. Commercial property insurance (may offer a higher level of protection for your business premises than offered by standard business insurance)
2. Glass breakage (which is a common business insurance exclusion)
3. Business interruption (which covers 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 your costs if you’re subject to an ATO audit)
6. Management liability (which can offer cover to business owners and directors against claims such as unfair dismissal or discrimination)

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 comes in the form of an ongoing benefit which, if approved, can provide up to 85% of your salary (subject to meeting other insurer criteria).

You may also be able to choose your benefit period (up to two years with some insurers) and waiting period (may vary between seven and 28 days before you can make a claim).

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