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Common Policy Types

As all businesses are different, their insurance needs will vary. Business insurance “package policies” also vary considerably. Below is an alphabetical list and brief explanation of the types of insurance commonly held by small to medium businesses. Each insurers package covers vary and separate covers will be needed to supplement the package policy if your business needs coverage in a crucial area.

Business Interruption - covers loss of trading profits if business is interrupted through damage to property by fire or other insured perils.

Burglary - covers loss or damage to stock, goods in trust and other contents for which you are responsible following theft from within the premises. Note: It does not normally cover theft by employees or others entitled to be on the premises.

Employment Practices Liability -  protects employers against damages and legal costs arising from allegations of inappropriate conduct towards employees in connection with their employment.

Engineering - covers mechanical and electronic equipment against such risks as breakdown and explosion.

Fire & Perils - covers destruction of, damage to, buildings and contents as a result fire and other perils such as lightning, explosion, malicious damage, earthquake, storm, and water damage. Flood is not covered often automatically by most standard fire and perils policies, but is often still available

Goods in Transit - covers loss or damage to property whilst in transit by road, rail or ship either within Australia or worldwide.

Keyman Insurance - protects the business in the event of the death or long-term disablement of a “key person”, usually the owner or someone else critical to the continued existence of the business.

Money - covers cash and other negotiable instruments for loss or theft from business premises and whilst in transit eg to the bank.

Motor - all registered vehicles must be insured for third party injury liability (CTP). Comprehensive insurance covers third party property damage and own damage.

Personal Accident, Illness or Disability - covers loss of income due to inability to work. Unless a Proprietary Limited company, Principals will not usually be covered by Workers’ Compensation and should arrange alternate disablement cover.

Products Liability - if you sell, supply or deliver goods, even in the form of repair or service, you may be legally liable for injury or damage claims arising out of your products.

Professional Indemnity - businesses that provide advice or tender professional services of any kind can be sued for financial loss due to errors or omissions, and may need this protection.

Public Liability - protects you for claims by third parties who may suffer personal injury or property damage arising out of negligent or unlawful acts committed in the course of your business.

Workers’ Compensation -  is compulsory insurance in all states and territories. It compensates workers and their relatives for death, injury or illness arising out of the injured worker’s employment.

Other insurances that might be relevant to the business but are not a definitive list are – Electronic equipment breakdown, Computers and computer records, Legal expenses/tax audit, Fidelity guarantee, Product recall, Credit/bad debts.

Some organisations, especially larger businesses or companies performing specialised work, require their own specifically designed insurance and risk management programs. Coastal can provide advice on the ability of your insurer to cover specific types of cover and fulfil your risk needs