Business Insurance Explained
There are so many different facets to business insurance as the cover is normally tailored to the activities of the business and their probable associated risks. The most common are as follows:
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Business Interruption Insurance – If through no fault of the business. The business is interrupted because of an event like COVID-19 (provided the policy does not exclude such an event). The policy will compensate the business for its loss of income. Another example which would possibly activate this could be a sudden loss or damage to the business premises or its equipment. The following application "General Liability covers Business Interruption, Employer's Liability & Public Liability".
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Business Vehicle Insurance – For (CLASS 1) type license vehicles - please use our personal insurance car insurance and select the option for "business use" Also see our page on Commercial Insurance.
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Bailees Liability Insurance - This is to cover the risk of damage of any property while in the care of a bailee (A bailee is a third party responsible for someone else's property)
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Credit Risk Insurance – This type of insurance cover is becoming increasingly popular as it protects the company from non-payment by clients on services or products supplied or rendered.
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Cyber-Security Insurance – This type of crime is on the increase worldwide and can cause major disruption to the business especially if the business relies on online platforms to conduct its business like online banking. The policy will compensate the business should this result and cause the business a loss of income
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Employees Dispute Insurance - This type of policy will both cover the legal costs and claims in response to any employment disputes instituted by current, former and future employees alleging a breach of either their employment contract, the Privacy Act and the Human Rights Act.
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Employers’ Liability Insurance – Most businesses need to provide additional cover for employees, subcontractors for injury or workplace accidents depending on its activities and these are not covered by ACC as the business is responsible for everyone’s safety at the workplace. The policy will normally cover the costs associated with the claims along with any legal expenses if incurred. It’s important to read the policy for any exceptions. The following application "General Liability covers Business Interruption, Employer's Liability & Public Liability"
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Employee Fraud Insurance – a policy that covers business loss as a result of employee fraud (dishonesty and theft as examples)
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Directors & Officers Insurance - This is a policy is to cover personal claims where Directors/Officers & employees that are involved in the management of a company while performing their duties
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Freight Forwarders Liability Insurance - The standard policy covers transport liability. Policy options thereafter may include Errors & Omissions (E&O), damage to cargo, customer financial losses, liability for fines or penalties and more
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Landlord Insurance – This is a policy specifically designed for landlords to protect their interests in their tenanted property. It protects the landlord in the event of loss and damage which results in loss of rental income caused by events beyond the control of the landlord
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Office Bearers Liability Insurance or Body Corporate Liability Insurance - This is where a civil claim is made against a member of a committee (normally a committee member of a Body Corporate) for what is called "wrongful acts". The cover covers both the defense costs and the liability awarded to the claimant if successful
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Public Liability Insurance – This policy protects the “public” or any person that is not employed by the business who may suffer injury and loss as a result of that business and its activities and operations. The following application "General Liability covers Business Interruption, Employer's Liability & Public Liability"
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Professional Indemnity Insurance – If there is a claim for compensation as a direct result of a professional providing their expertise and this results in a loss or damage to the client. This policy normally protects the professional for any claims and legal costs that may result.