Business insurance for Australian businesses
A business can take years to build, but property damage, theft, equipment failure or another unexpected event can interrupt operations quickly. RMA Insurance Brokers helps businesses review and arrange insurance around their premises, property, income and day-to-day operations, with cover structured according to the risks the business faces.
Business insurance at a glance
Business insurance can bring several types of cover together within one insurance program.
Depending on the insurer and the needs of the business, cover may be available for property damage, business interruption, theft, money, liability, glass, equipment and other selected business risks.
The sections selected, sums insured, limits, excesses and exclusions should reflect the way the business operates day to day.
Key areas
- Business property
- Business interruption
- Theft & money
- Liability
- Equipment
- General property
Who should consider business insurance?
Business insurance may be relevant to businesses that could suffer a financial loss if their premises, stock, equipment or ability to trade were affected by an insured event.
- retail and hospitality businesses
- trades and service businesses
- professional and office-based businesses
- wholesalers and businesses holding stock
- regional and rural SMEs
- agribusinesses with commercial operations outside their core farming activities
The appropriate insurance arrangement depends on the activities undertaken, property and equipment owned, premises occupied and the financial impact an interruption could have on the business.
Farming businesses running commercial operations alongside the property itself generally consider business cover together with farm insurance.
What can business insurance cover?
Business insurance packages can include a range of sections. The cover selected should reflect the exposures of the individual business.
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 settlement basis depend on the policy selected.
Business interruption
Business interruption insurance may help protect the financial position of a business following an insured interruption.
Depending on the policy, cover may include lost income or turnover and additional costs incurred while the business recovers.
Theft, money & glass
Business packages may 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 and limits 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 & transit
General property cover may protect tools, laptops and other portable business equipment.
Business insurance packages may also offer transit cover for eligible stock or property while it is being transported, depending on the policy.
Equipment and other business sections
Depending on the insurer and package selected, additional sections may be available for electronic equipment breakdown, machinery breakdown, tax audit costs and employee dishonesty.
These covers should not be assumed to be included automatically.
Business interruption deserves particular attention
Property insurance can help repair or replace damaged assets, but the financial impact of a major loss can continue while the business is unable to operate normally.
During an interruption, a business may still need to meet expenses such as wages, rent, finance commitments and other ongoing costs despite reduced or no revenue.
Depending on the policy, business interruption cover may respond to areas such as:
- lost revenue or income
- continuing fixed costs
- temporary relocation expenses
- additional expenses incurred to keep the business operating
- certain insured access or closure situations
The period selected for business interruption cover is also important. The business needs enough time not simply to repair physical damage, but to restore operations and recover its trading position.
A business interruption claim will commonly require an insured property loss or damage to have occurred, although some policies may contain limited extensions that operate differently. The policy wording and selected extensions should therefore be reviewed carefully.
RMA Insurance Brokers can help consider the potential interruption period and the financial information required when reviewing this part of the insurance program.
What information may be needed for a business insurance review?
When reviewing business insurance, RMA Insurance Brokers may need information about:
- the activities undertaken by the business
- premises occupied and how they are used
- buildings, contents, stock and equipment requiring insurance
- current sums insured and asset values
- turnover and financial information relevant to business interruption
- security and risk-management arrangements
- previous losses and claims
- material changes to the business since the previous renewal
The information required will vary according to the occupation and cover being requested.
It is important that the insurer receives an accurate description of what the business does, particularly where activities have expanded or changed.
When should business insurance be reviewed?
Business insurance should evolve as the business changes.
A review is particularly worthwhile when the business has:
- moved or opened another premises
- purchased significant new equipment or stock
- materially changed property values or sums insured
- increased or reduced turnover
- changed the activities or services it provides
- substantially changed staffing or operating arrangements
- undertaken renovations or a major fit-out
- experienced a significant claim or interruption
Annual renewal is also an opportunity to check whether the cover arranged still reflects the current business rather than simply renewing last year's figures.
Some policies contain an underinsurance or average condition that may reduce the amount payable where the sum insured is less than the value required under the policy.
Our article on why premiums keep rising and what to do at renewal covers the market conditions behind recent renewals.
What may not be covered?
Every business insurance policy contains exclusions, limits, conditions and excesses.
Depending on the policy, cover may not apply to:
- 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
- interruption losses where the required policy trigger has not occurred
- gradual deterioration, wear and tear or maintenance issues
- machinery or electronic breakdown where that cover has not been selected
- 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.
Example: a regional business temporarily unable to trade
Illustrative example
A regional retail business suffers significant water damage after a pipe fails overnight, damaging stock, fixtures and part of the premises.
Repairs require the business to close the affected premises for several weeks. Although trading has stopped, the business continues to incur expenses while repairs are completed.
The property damage and interruption losses would be considered against the relevant sections of the business insurance policy, including the insured property, cause of damage, interruption period, financial information and applicable policy conditions.
Where business interruption cover applies, the policy may also consider insured additional expenses incurred to continue or restore operations.
Example provided for general illustration only. Policy coverage and the amount of any claim depend on the insurer, policy wording, sums insured, financial information and circumstances of the loss.
Business insurance for rural and regional businesses
RMA Insurance Brokers works with businesses across rural, regional and metropolitan Australia.
Our business clients include SMEs operating across retail, trades, professional services, hospitality, transport, agribusiness and other commercial sectors.
We also work closely with rma network Livestock & Property Agents, providing strong connections with businesses and communities throughout regional Australia.
Our services are not limited to rma network Members. Businesses across Australia can contact RMA Insurance Brokers for assistance with their business insurance requirements.
Why RMA Insurance Brokers?
A business insurance package can contain several different sections, each with its own sums insured, limits, exclusions and conditions.
RMA Insurance Brokers can help you:
- review the activities and exposures of the business
- identify property, stock and equipment requiring insurance
- review sums insured and business interruption requirements
- consider liability and other relevant business sections
- approach suitable insurers
- compare available policy structures and terms
- manage policy changes as the business evolves
- assist with business insurance claims
Our focus is on understanding how the business operates and helping arrange insurance that reflects its current exposures rather than relying on a policy structure that may no longer suit the business.
Frequently asked questions
What does business insurance cover?
Business insurance can combine several forms of cover 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 risks.
The exact sections and limits depend on the policy arranged.
Is business interruption insurance included in business insurance?
Business interruption may be 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 insurance is arranged.
How long should business interruption insurance cover my business?
The appropriate indemnity period depends on how long the business could realistically take to recover following a significant insured loss.
Considerations may include repair or rebuilding time, replacing equipment, relocating temporarily, restoring stock and returning the business to normal operations.
The appropriate period varies considerably between businesses.
Does business insurance include public liability?
Public and products liability may be 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?
Information required will depend on the business and the cover being requested.
It may include business activities, premises details, property and stock values, equipment, turnover, business interruption information, security arrangements and previous claims.
RMA Insurance Brokers can help identify the information required before approaching insurers.
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.
Whether you are reviewing an existing business insurance package, opening a new premises or checking whether the current cover still reflects the way your business operates, RMA Insurance Brokers can assist.
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.