Getting the right insurance

Business insurance

Getting the right insurance for your business can be tricky. Make sure you consider all your options. Always ask for the policy in writing and make sure you read and understand the full terms and conditions in the policy disclosure statement. Consult an insurance broker for more advice.

Personal insurance

Consider the risk to your business if something was to happen to you personally. You may require some of the following common types of personal insurance as well as business insurance.

• Term life insurance - provides a lump sum benefit should you die or become terminally ill. Total and permanent disablement (TPD) can be added as an option and is paid if you become totally and permanently disabled and are unable to work
• Trauma protection - provides a benefit if you suffer one of the trauma conditions as offered by the particular insurer
• Income protection insurance - insures you against the loss of personal income while you are unable to work due to illness or injury
• Business expenses - insures you for business expenses such as leases and wages while you are unable to work due to illness or injury

Common misunderstandings

Replacement policy

Sections of insurance policies that relate to replacement and asset valuation are often misunderstood.

A replacement policy aims to replace or restore property as new. These policies may have an upper limit on the amount payable, and if you are not aware of this, you could be insured for less than you think. Similarly, if you're not sure of the replacement costs of your assets at today's prices, you may also be underinsured.

Flood cover definitions

The different definitions for flood and inundation in insurance policies often cause confusion.

Most insurance policies do not cover damage to a property if caused by:

• inundation of water flowing from a natural watercourse
• inundation of water from both the storm and overflow of a natural watercourse (unless most of the damage is caused by stormwater)
• other phenomena, such as earth movement, even though this may itself have been caused by water from a storm.

Speak to your insurer to find out if you have the right insurance cover for your property.

Compare insurance costs

Benchmark your business to compare insurance costs in similar businesses.

Related links

• Visit the Insurance Council of Australia for more information about insurance.
• Find out about help with insurance after a natural disaster.