Specialist Insurance FAQs

Specialist Insurance

Specialist Insurance FAQs

Business Insurance

Business Insurance allows your business to effectively manage unforeseen risks to ensure that if the worst were to happen, your business can continue to operate.

It is important that you tailor your Business Insurance to the needs of your business. This will depend on a range of factors including:

  • The nature of your work;
  • The type, value and location of your assets;
  • The legal and management structure of your company; and
  • The physical, financial or reputational risks which threaten your company.

Business Insurance can cover the costs your business may be unprepared for, including the costs of litigation. For example, Business Insurance may provide you with cover if the following events were to occur:

  • A customer has an accident on your business premises and suffers injury;
  • One of your employees gives incorrect advice to a customer on how to use your product;
  • The machine you use to manufacture your product breaks down; or
  • Your business premises are destroyed following a fire.

Yes, depending on the type of Business Insurance you take out, cover may be available in the event that cash is stolen from your business premises or whilst in transit. The extent of cover will depend on your particular insurance so it is important that you discuss this business concern with your insurance advisor.

No, Business Insurance is unlikely to provide cover for credit card fraud. This type of risk is more appropriately captured under a Crime or Cyber insurance policy. If this risk is of particular concern to you, it is important that you discuss this with your insurance advisor to ensure you maintain appropriate cover.

You may need to continue to maintain your insurance, even after your business ceases to operate. The nature and extent of cover required after cessation will depend on your particular needs and the nature of the business. This type of cover is called 'run-off cover'.

The following examples illustrate the need for run-off cover with regard to your Professional Indemnity and Public Liability policies:

  • You give bad advice to a client which results in your client suffering a financial loss. If your client brings a claim against you with respect to this financial loss, the insurance policy that will respond is that policy in force at the time the claim is made – regardless of when the event that gave rise to this claim occurred. It is therefore important that you continue to maintain your Professional Indemnity Insurance to ensure there is a policy in place to respond in the event that a claim does not occur until many years after the event.
  • You install faulty wiring in a house which causes it to burn down three years later. The Public Liability Insurance policy that will respond is the policy in force at the time the injury or property damage occurred – that being the three years after you installed the faulty wiring.

It is important that you discuss the need for run-off cover with your insurance advisor if you cease to carry on business.

Yes, Business Insurance premiums are tax deductible. Insurance premiums are considered operating expenses by the Australian Taxation Office (ATO) and you can generally claim a deduction for most operating expenses in the same income year in which they are incurred. We recommend you discuss the specific taxation implications of your insurance program with your financial advisor.

Yes, most insurance providers will allow you to pay your insurance premiums by monthly instalments. Be sure to discuss your payment options and any associated fees or expenses with your insurance provider prior to taking out any policy of insurance.

Yes, many insurance providers now offer the option of adding commercial motor vehicle insurance onto a Business Insurance package. If your business uses vehicles, it is important to ensure they are adequately insured – just as you would any other business asset.

Personal motor insurance may not provide the level of cover required by you if you use your vehicle for business purposes. Your personal motor insurer may also reject a claim if the vehicle was used for business purposes at the time the event occurred. It is important that you discuss the need for commercial motor insurance with your insurance advisor.

Yes, you should consider the need for Business Insurance if you deliver food. Be sure to discuss this aspect of your business with your insurance advisor to ensure you have appropriate cover in the event of a claim.

Business Interruption insurance allows for your business to get back on its feet by meeting your financial obligations and additional expenses in the event of loss or damage to your business.

It is important that you discuss the need for Business Interruption insurance with your insurance advisor to ensure this is tailored to address your 'worst case scenario'. For example, Business Interruption insurance may provide cover for loss of profit or revenue, the additional cost of doing business and claims preparation costs.

Public Liability Insurance

Public Liability Insurance protects your business against the financial risk of claims brought by third parties for personal injury or property damage as a result of your business activities. If relevant for your business, cover may also be provided for product liability claims.

It is important that you tailor your Public Liability Insurance to the needs of your business. This will depend on a range of factors including:

  • The nature of your work;
  • The kind of products you make or services you provide; and
  • Whether you have customers or members of the public visiting your business premises.

Public Liability Insurance is an important safeguard for your business by providing cover for a range of claims made by third parties, including legal costs incurred in defending a claim. It is important to note however, that Public Liability Insurance only protects you against claims by third parties, not claims made by your own employees.

Yes, business insurance premiums are tax deductible. Insurance premiums are considered operating expenses by the Australian Taxation Office (ATO) and you can generally claim a deduction for most operating expenses in the same income year in which they are incurred. We recommend you discuss the specific taxation implications of your insurance with your financial advisor.

Property Insurance

Property Insurance allows your business to get back up and running as soon as possible should damage be suffered to your business assets.

Property Insurance protects the physical assets of your business such as buildings, equipment and stock from damage caused by physical perils such as fire, flood, storm or theft. Property Insurance may be combined with Business Interruption Insurance so as to protect you against the financial costs of halting or altering your business processes as a result of the physical damage covered under your property insurance.

It is important that you tailor your Property Insurance to the needs of your business. This will depend on a range of factors including:

  • The type and value of your assets;
  • The location of your property; and
  • The amount of cover you want to take out in the event of your 'worst case scenario'.

Professional Indemnity Insurance

If you provide professional advice or services, Professional Indemnity Insurance provides protection against claims made by third parties for loss arising from acts, omissions or breach of professional duty in the course of your business. Professional Indemnity Insurance may also cover your legal costs incurred in the event of a claim. It is important to note that many professions are subject to strict guidelines specifying the level of Professional Indemnity Insurance required in order to trade.

Ensure you discuss the nature of your business with your insurance advisor to determine whether your business operations are subject to this form of exposure.

No, Professional Indemnity Insurance is not compulsory in Australia.

However, a number of professions such as lawyers and accounts are required by law or their governing bodies in order to receive or renew their accreditations, qualifications or licences. These professions are subject to strict guidelines specifying the level of Professional Indemnity Insurance required in order to trade.

Ensure you discuss any requirement to hold Professional Indemnity Insurance with your relevant industry body.

Professional Indemnity Insurance is written on a 'claims made' basis. This is in contrast to other policies of insurance such as Public Liability which operate on an 'occurrence' basis.

'Claims made' insurance policies such as Professional Indemnity protect you from claims which are made during the period of insurance, regardless of when the act or omission giving rise to the claim occurred. On the other hand, the 'occurrence' based policy such as Public Liability that will respond to a claim is the policy in force at the time the injury or property damage occurred.

You may need to continue to maintain your Professional Indemnity Insurance, even after your business ceases to operate so as to ensure there is a policy in place to respond in the event that a claim does not occur until many years after the event. This type of insurance is called 'run-off' cover.

Specialist insurance products are made available through 1300 Insurance’s partnership with AON. 1300 Insurance has commercial arrangements with a number of insurance manufacturers and brokers in order to bring you quality low cost insurance options.