Business insurance for Australian businesses
A business takes years to build, but property damage, theft, equipment failure or another unexpected event can interrupt trading quickly. RMA Insurance Brokers helps business owners review and arrange insurance around their premises, property, income and day-to-day operations.
Supporting Australian businesses through change.
Overview
Business insurance at a glance
Business insurance brings several types of cover together in one program, so the premises, property, stock, equipment, liability and income of the business are considered as a whole rather than in isolation.
Businesses change over time. The sections selected, sums insured, limits and excesses should reflect the way the business operates today, not the way it operated when the policy was first arranged.
Who it is for
Who should consider business insurance?
Business insurance is relevant where a business would face a financial setback if its premises, stock, equipment or ability to trade were affected by an insured event, including:
- retail and hospitality businesses
- trades and service businesses
- professional and office-based businesses
- wholesalers and businesses holding stock
- manufacturing businesses
- transport, warehousing and logistics operators
- property and real estate businesses
- regional and rural SMEs
- agribusinesses with commercial operations beyond their core farming activities
The right arrangement depends on the activities undertaken, the property and equipment owned, the premises occupied and the financial impact an interruption would have on the business.
Farming businesses running commercial operations alongside the property itself generally consider business cover together with farm insurance.
Cover
What cover may be available?
A business insurance package is made up of separate sections, each with its own sums insured, limits, excesses and conditions. Only the sections shown in the schedule apply.
The sections selected should reflect the exposures of the individual business, so the schedule and wording are worth reviewing together rather than assuming a standard package covers everything.
Property damage
Cover may be available for insured buildings, contents, stock and other business property damaged by an event covered by the policy.
The property insured, applicable events, sums insured and excesses depend on the policy selected. The basis of settlement also matters. Depending on the policy, property may be insured on a replacement or indemnity basis, which can affect how a claim is settled.
Business interruption
Business interruption insurance helps protect the financial position of a business after an insured interruption.
Depending on the policy, cover may include lost income or turnover, continuing expenses and additional costs incurred while the business recovers.
Theft, money & glass
Business packages commonly include cover for theft of insured property, loss of money and damage to insured glass such as shopfront windows, mirrors or display cases.
The scope, limits and conditions applying to each section vary between policies.
Public & products liability
Public and products liability insurance may respond where the business becomes legally liable for personal injury or property damage arising from its operations or products.
Cover may also include certain defence costs, subject to the policy terms and circumstances of the claim.
General property, tools and transit
Tools, laptops and other portable equipment may require separate general or portable property cover when they are regularly taken away from the insured premises. The locations, limits and insured events differ between policies.
Some business packages include limited cover for eligible stock or property while in transit. Businesses with regular or higher-value transit exposures may need separate Transit & Cargo Insurance.
Equipment and machinery breakdown
Property cover generally responds to insured external events, while internal mechanical, electrical or electronic breakdown may require a separate equipment breakdown section.
Depending on the insurer and package selected, further sections may be available for machinery breakdown, tax audit costs and employee dishonesty. These covers should not be assumed to be included automatically.
Interruption
Business interruption deserves particular attention
Property cover helps repair or replace damaged assets, but the financial impact of a major loss continues while the business is unable to trade normally.
Wages, rent, finance commitments and other ongoing costs usually continue even when revenue has stopped. Depending on the policy, business interruption cover may respond to:
lost revenue or income following an insured interruption
continuing fixed expenses such as wages, rent and finance costs
additional expenses incurred to keep the business operating
temporary relocation costs
certain insured access or closure situations, where those extensions apply
The recovery, or indemnity, period selected is just as important as the amount insured. The business needs enough time not only to repair physical damage, but to restore operations and rebuild its trading position.
A business interruption claim generally requires insured property loss or damage to have occurred, although some policies contain limited extensions that operate differently. An interruption caused by a cyber incident may require separate Cyber Insurance rather than relying on standard business interruption cover.
Financial information is needed to set the cover appropriately, and we help work through the interruption period and the figures required when this part of the program is reviewed.
Limits
What may not be covered?
Not every loss or circumstance will be covered under a business insurance policy. Exclusions, limits, excesses and conditions differ between insurers, so some areas are worth checking carefully when reviewing your cover:
- property, stock or equipment not insured under the policy
- losses arising from events excluded by the relevant section
- amounts above the applicable sum insured or policy limit
- flood, which is generally excluded unless cover has been specifically agreed and shown on the policy schedule
- interruption losses where the required policy trigger has not occurred
- gradual deterioration, wear and tear or maintenance issues
- machinery or electronic breakdown where that section has not been selected
- portable property away from the premises where general property cover has not been arranged
- liability arising from activities not disclosed to the insurer
- circumstances subject to a specific exclusion or endorsement
Business interruption cover may also be affected by exclusions applying to the underlying property section.
This is not a complete list. The policy wording, schedule, limits and endorsements determine the cover applying to the business.
When should business insurance be reviewed?
Business insurance should keep pace with the business. A review is particularly worthwhile when the business has:
- moved premises, opened another site or completed a major fit-out
- purchased significant new equipment or increased stock levels
- changed property values or sums insured
- increased or reduced turnover
- changed the activities or services it provides
- changed staffing or operating arrangements
- experienced a significant claim or interruption
When reviewing cover, check that sums insured reflect the valuation basis required by the policy rather than relying on older figures. Some policies include an underinsurance or average condition, which may reduce the amount payable if the insured value does not meet the policy requirements.
Our article on why premiums keep rising and what to do at renewal covers the market conditions behind recent renewals.
Broker support
Business insurance advice built around how you operate
Business insurance usually involves several connected areas: premises, property, stock, equipment, liability and the income the business depends on. We work through those areas with owners and managers so the cover reflects how the business actually runs.
We help clients understand the cover available, arrange insurance suited to their operations and keep it updated as the business changes. If a claim occurs, we stay involved, help work through the process and liaise with the insurer on the client's behalf.
RMA Insurance Brokers works with businesses across rural, regional and metropolitan Australia, including retail, trades, professional services, hospitality, transport and agribusiness. Through our relationship with rma network Livestock & Property Agents, we have connections throughout regional Australia. We also support clients outside the rma network and across other parts of Australia.
How we help
How we help businesses
review business activities, premises, property, stock and equipment
review sums insured and business interruption requirements
consider liability and other relevant sections
approach suitable insurers and explain differences in available cover
manage policy changes and renewals as the business evolves
help notify and progress business insurance claims
What happens after you enquire?
We contact you
A broker from RMA Insurance Brokers will get in touch to talk through what the business does, the premises and property involved, your current insurance and when it falls due, along with any recent or planned changes.
We confirm what is needed
We will explain what information is needed, answer your questions and confirm the next step before approaching insurers.
Useful information to have available
- current policy schedule and renewal date
- business activities and premises details
- property, stock and equipment values
- turnover and business interruption information
- security arrangements and relevant risk information
- recent claims and material changes to the business
FAQs
Frequently asked questions
What does business insurance cover?
Business insurance brings several forms of cover together within one insurance program.
Depending on the insurer and package selected, this may include property damage, business interruption, theft, money, liability, glass, general property and selected equipment-related sections.
The sections, limits and excesses that apply depend on the policy arranged.
Is business interruption insurance included in business insurance?
Business interruption is often available as a section of a business insurance package, but it should not be assumed to apply automatically.
The selected cover, financial basis, interruption period and applicable policy trigger should be checked when the insurance is arranged or reviewed.
How long should business interruption insurance cover my business?
The appropriate indemnity period depends on how long the business would realistically take to recover following a significant insured loss.
Repair or rebuilding time, replacing equipment, relocating temporarily, restoring stock and returning trade to normal levels are all worth considering.
The period that suits one business will not necessarily suit another.
Does business insurance include public liability?
Public and products liability is commonly available as part of a business insurance package.
The cover generally relates to the business's legal liability for certain personal injury or property damage arising from its operations or products, subject to the policy wording.
What information is needed for a business insurance quote?
The information required depends on the business and the cover being requested.
It commonly includes business activities, premises details, property and stock values, equipment, turnover, business interruption information, security arrangements and previous claims.
We help identify the information required before approaching insurers, and an accurate description of what the business does is particularly important where activities have changed or expanded.
Explore
Related insurance
Liability Insurance
Public and products liability considerations for businesses that interact with customers, suppliers and members of the public.
Cyber Insurance
Insurance considerations for cyber incidents, data breaches, business interruption and incident-response costs.
Commercial Motor Insurance
Insurance for work vehicles used as part of the business's day-to-day operations.
Professional Indemnity Insurance
Insurance considerations for businesses providing professional advice, services or expertise.
Management Liability Insurance
Insurance considerations for directors, officers and businesses facing management-related claims and statutory exposures.
Plant & Equipment Insurance
Insurance considerations for owned, hired-in or hired-out plant, machinery, equipment and tools used in business operations.
Review your business insurance
Businesses change over time as turnover, stock, equipment, premises and operations evolve.
RMA Insurance Brokers helps business owners review whether their insurance still reflects the way the business operates today.
The information on this page is general information only and does not take into account your objectives, financial situation or needs. Cover is subject to the terms, conditions, limits and exclusions of the relevant policy. Insurance products and available cover vary between insurers. Please review the relevant policy documentation and obtain advice appropriate to your circumstances before making a decision.