There are many small business insurance policies you may need to consider as a small business owner, and Business Insurance packs are one of them. A Business Insurance pack is designed to cover your business’s physical assets for loss and damage resulting from events such as fire, vandalism, theft, storm and earthquake. Business Insurance packs typically have various sections of cover to choose from depending on your business’s requirements. Below, we’ll break down each section of cover, and detail how it would work in the event of a claim…

This cover is available if you own the building your business operates in (or have a contractual requirement to insure it). It is designed to cover the cost to repair or rebuild the building if it is physically damaged, lost or destroyed by insured events such as fire, storm, earthquake, or malicious damage. When selecting this cover, remember to take care in nominating the sum insured and ensure it reflects the total replacement cost of the building. Underinsurance can have significant consequences, even if your building suffers partial damage – see our article on the true consequences of underinsurance.

The contents section of a Business Insurance pack covers your business’s contents such as equipment, furniture, and any fixtures and fittings that are designed to remain at the premises if they are damaged by an insured event. When determining the value to insure your contents, an asset register kept by you or your accountant can be a good starting point. If your business holds stock for sale, these can be insured for theft or damage resulting from an insured event. Stock means all stock in trade, your merchandise and packaging at the premises, including raw materials, work in progress and property of others held on consignment.

This Contents section should not be confused with the General Property section also available under Business Insurance packs.

This policy section provides cover for the cost of repairing or replacing items that suffer accidental physical damage, destruction, or loss. Under the General Property section, you also have the option to cover portable items such as your laptop, mobile phone, tablet and other equipment while you take them outside your business premises anywhere in Australia.

The burglary section under a Business Insurance Pack is designed to cover Contents, Stock and other property that is at risk of being stolen from the premises, by forcible or violent entry. If you select this cover, you will be required to nominate a sum insured for the property category that you need cover for. In deciding this sum insured, consider what items within your business premises could easily be taken, such as stock, laptops, or other equipment.

This section covers glass fixtures at your business premises such as windows, doors, showcases and glass counters, and covers the replacement cost if they are broken accidentally or damaged. A Business Insurance Pack will cover the actual cost of replacing and fixing glass into its frame or in its usual location at your premises.

Business Interruption is designed to cover loss of income your business suffers while unable to operate due to damage suffered as a result of an insured event. It is an important section of cover as it can help protect your livelihood while your business premises are being repaired until you are able to operate again. For example, if your business contents are damaged by a fire, and you’re unable to operate while they are being repaired or replaced, then during the time you’re out of action, your loss of income will be covered under the Business Interruption section.

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This provides cover for cash, bank notes, currency notes, negotiable cheques, authorised gift vouchers, and more, if they’re stolen or damaged as a result of an insured event. If you select this cover, you will also be required to nominate a sum insured, and this is the maximum you’ll be able to claim in the event of an incident.

Public Liability is a basic business liability insurance designed to cover you if you’re held legally liable for personal injury or property damage to a third party as a result of your business activities. It is an important cover to consider for any business that involves interacting with members of the public, and may even be mandatory for some business types. You can also buy Public Liability Insurance online as a standalone policy, and in some cases, it is also available as a bundle with some Professional Indemnity Insurance policies. Before selecting Public Liability as part of a Business Insurance pack, its worth making sure you don’t already have this cover.

If your business owns engineering plant, this section provides cover for the cost to repair or replace them if they suffer any sudden or unforeseen physical damage or breakdown. This section is only intended to cover such plant and equipment which are located at your premises permanently, and not those items such as computers or other excluded plant.

This section provides two cover options for your electronic items such as laptops, computers, and other office equipment. Electronics insured under this section will be covered if they suffer loss, damage or breakdown. You also have the option to be covered for the costs of restoring electronic data or software that are physically damaged as a result of insured damage that occurs to the property on which such data can be stored.

If your business relies on certain type of machinery or equipment to operate, a sudden breakdown could have significant consequences for your business. In addition to the repair or replacement costs, the lost revenue during repairs would also impact your bottom line in a negative way. Machinery breakdown covers the cost of repairing or replacing your business equipment & machinery in event of a breakdown. It can also provide cover for some of the associated costs of a breakdown such as deterioration of stock and damage to other property caused by the breakdown.

An important feature to understand in relation to the above three sections of cover (Engineering Plant, Electronic Equipment & Machinery Breakdown) is that they are designed to provide cover for loss, damage or sudden breakdown. In order for your machinery, engineering plant and/or electronic equipment to be covered for insured events such as fire, theft, storm, vandalism and earthquake, then your equipment & machinery also needs to be insured under the Contents section of your Business Insurance pack.

The employee fraud section of a Business Insurance pack covers losses your business might suffer as a result of employee fraud. Cover under this section is limited to the respective sum insured, for example, if employee fraud leads to loss of cash from your premises, then the maximum payable in the event of a claim would be the sum insured under the money section.

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A Business Insurance Pack is a versatile type of insurance policy with many sections of cover of available. While your business may not need every single cover listed above, understanding each individual section can help ensure you make an informed decision and are not left with any gaps in cover when it comes to insuring your business’s physical assets.