Business pack insurance for my small business

Business pack insurance for my small business

As a small business owner, it’s possible you may have heard something about business pack insurance. Even if you don’t know exactly what it entails, it’s likely you are familiar with the term.

Sometimes, keeping up with all the different types of insurance that are releva

By Public Liability Comparison Team

Do You Need It?

As a small business owner, it’s possible you may have heard something about business pack insurance. Even if you don’t know exactly what it entails, it’s likely you are familiar with the term.

Sometimes, keeping up with all the different types of insurance that are relevant to a small business can be overwhelming. At times, it may seem like it’s hard to keep up with all the coverage options available to you, and it’s hard to know which ones are necessary and which ones aren’t.

The good thing about business pack insurance is that it can help simplify your insurance needs by streamlining them.

What is business pack insurance?

In simple terms, business pack insurance is cover that combines a range of different insurance types under one policy. So, for example, instead of having an individual policy for business interruption, an individual policy for property and an individual policy for liability, you could get business pack insurance, which will cover all of these things under the one policy.

Instead of having to keep track of a whole bunch of different insurance policies, you only need to keep track of the one insurance policy.

Another positive of business pack insurance is that not only will it lower the number of policies you have to keep track of, it may also lower your insurance premium as underwriting several risks together tends to work out cheaper than purchasing individual policies.

Some insurers have business pack insurance that they have designed specifically for small businesses. These insurance policies are typically based on the lower annual turnover of small businesses (as compared to the annual turnover of large businesses) and will vary depending on the industry in which your small business operates

What types of things are usually covered under business pack insurance?

The types of cover offered under business pack insurance policies will differ between insurers. While insurers don’t typically offer all of the cover types in the below list under the one business pack policy, these are the types of things that a business pack policy may cover:

  • Property (this usually includes buildings, contents and stock that are accidentally damaged by a defined event)
  • Public and product liability
  • Machinery breakdown
  • General property (usually tools and professional equipment that are not stationary)
  • Computers and electronic equipment
  • Equipment breakdown
  • Glass
  • Business interruption
  • Theft
  • Money
  • Employee dishonesty
  • Tax investigation
  • Personal accident
  • Marine and cargo
  • Insurers usually offer what is referred to as a “standard” business pack policy, which will include a handful of the most common cover types in the above list.

Most of the options above that aren’t included in the “standard” policy can usually be added to the policy if you so wish — in exchange for a higher premium, of course.

Are there types I can tailor to my small business?

The answer to that is yes. Some insurers have business pack insurance that they have designed specifically for small businesses. These insurance policies are typically based on the lower annual turnover of small businesses (as compared to the annual turnover of large businesses) and will vary depending on the industry in which your small business operates (i.e. most insurers don’t offer a one-size-fits-all small business insurance pack policy; they usually have a range of options available to small businesses that cater to different industries).

If none of the options insurers themselves have curated appeal to you, the majority of insurers will let you customise business pack insurance to your business so that the insurance cover will match the specific needs of your small business. With customisation, the insurance company will usually give you a bunch of individual insurance covers (similar to those listed above) and you can pick and choose which ones are most relevant/important to you.

Do I need it?

As always, the only person who knows the answer to that question is you. You are the expert on your business and the particular risks posed to it.

However, have a think about the types of insurance policies you currently have — are there quite a few? Would they be easier for you to keep track of if they were all combined under one policy? Would it be more cost-effective for you?

Have a think about the types of cover in the bullet list above — are you covered for all of the risks posed to your business? Or are there some liabilities of which you weren’t previously aware? Would a business pack policy help you plug those liability holes?

Having a think about the answers to these questions should help get you on your way to deciding if business pack insurance is a good policy option for you. If you’re still unsure, engage the help of an independent adviser (i.e. one who isn’t affiliated with a particular insurance company) to help you make a decision that is right for you and your business needs.

Why Are Public Liability Premiums Increasing?

Are Public Liability Premiums Increasing?

According to Steve Sloan from Publicliabilitycomparison.com.au public liability premiums are increasing, and here’s why.

Insurers Hardening Market

“Insurers have been through a cycle of lower premiums that have reduced the returns to their shareholders. They are now in the position where they need to raise the premiums to improve the situations. Lower premiums coming to an end

Many public liability insurers that last year were offering lower premiums to get new policy holders are raising the premium on renewal

More excess in the event of a claim

Others are raising the standard excess in the event of claim, most have gone from the first $400 to $500, making claimants think twice about claiming in the event of small third party property losses.

Stamp Duties

Most states use insurance stamp duty to balance their budget. NSW in particular removed stamp duty only to reinstate in a move that left consumers and insurers confused and out of pocket, as NSW controls so much of the insurance pool, the administration costs of the changes were reflected in premiums across the country.

Insurers mergers and acquisitions

Some of the insurers that’s offer public liability insurance for tradies and small business have gone through some ownership and management changes. This includes brands like Calibre, Vero and Zurich.”

Steve Sloan recommends getting a comparison every time your policy is due for renewal. “Let the market cycles help you get the best premium, but check with your broker to make sure the policy wording and inclusions are the same or better than your existing cover.”

Public Liability Compared

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

Public Liability Premiums Reduce

Public Liability Premiums Reduce in June and July

Public liability premiums reduced in June and July in Australia. According to Insure 247 "With the entry of new insurers and the hardening market, consumers look set to enjoy good premuims". Consumers are also benifiting of easier ways to compare the public liability insurers. Public Liability Comparison compared 4500 policies in June and July.

Public Liability Comparison compared 4500 policies in June and July.

Occupations enjoying better pricing

We have also seen a reduction in the insurance premiums for Carpenters, Plumbers and Painter, with some of the lowest premiums since 2008.

Public liability insurance clients in NSW have enjoyed the largest reductions in public liability for some occupations, so if you need a quote for new business or to compare your existing policy click compare and save by click here

NSW have enjoyed the largest reductions

Comparing more Occupations

Some of the public liability insurance policies we compared this month have included Bar and Restaurant, Cross Fit Training, Geo Engineer, Fencing Contractor, Removal Contractors  Self Storage Facility, Welder/Boilermakers and Waterproofing.

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

Compare Public Liability Insurance

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Public Liability Compared

Public Lability Premiums Reduce

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

5 reasons you need public liability insurance

5 reasons you need public liability insurance

It's estimated that of the 2,171,544 of actively trading businesses in Australia, 1 million of those are sole traders (not paying PAYG). These sole traders face risk while working with the public.

1.Accidents Happen

In Australia in 2016, there were 300-000 personal injury claims. A large number of these claims are covered by workers compensation insurance. Those workers compensation insurers will take legal action to recover the money paid.

If you or an employee of yours was responsible for the injury to a third party, your business would be held liable.

Personal injury claims are not restricted to medical needs it also covers ongoing needs, Loss of Earnings, Pain and Suffering In 2012–13, work-related injury and disease cost the Australian economy $61.8 billion, representing 4.1% of GDP.

 

2. Damage to Property is Expensive

You need public liability insurance because as Insure 247 explains the average public liability third-party claim for property damage in the last 12 month was $2800*, some as small as broken windows $550 and as large as $200,000 for water damage. On average it takes 42 days for public liability insurers to pay the claims.

3. Public Liability Insurance Makes Economic Sense

According to Insure 247, for small to medium business with  1 or 2 employees operating as a trades person or a professional risk, annual public liability insurance premiums should range between +$500-$1000, and then in the event of a claim, there will be an excess payable (Normally around $500).

4. It may be required to work

Government contracts, worksite health and safety and some licensing and industry regulator will require you to have a current public liability policy. Some may also need consumer protection insurance.

5. Consider your risk?

Do you carry stock owned by someone else? Does your business operate around the public? Could you afford a personal injury or property damage claim without insurance?

If you are still unsure, talk to our team on 1300 046 787, to discuss your requirement.

Public and Products Liability Insurance Quotes

PUBLIC AND PRODUCTS LIABILITY INSURANCE COMPARED

Compare Public Liability Insurance

1300-Insure

 

Public Liability Compared

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

Sources: 8165.0 - Counts of Australian Businesses, *Insure 247 Claims Statistics May 2016 -April 2016, +Depended on Turnover and other underwriting criteria,

Who needs Public Liability Insurance