Insurance for Business in Australia

Insurance Australia

Starters Insurance Guide for doing Business in Australia

 

Australia has a mature insurance market with 3 distinct parts:
– General insurance
– Life insurance
– Health insurance

The focus of this guide is on general insurance. The general insurance segments includes Liability insurance such as Compulsory Third Party (CTP) motor insurance, worker’s compensation, professional indemnity insurance and public liability insurance.

It also includes Property insurance such as building and contents insurance, travel insurance, and comprehensive motor vehicle insurance.

Required by Law – certain types of insurance, such as Compulsory Third Party (CTP) motor insurance and worker’s compensation, are statutory and can differ considerably by state or Territory.

In Australia, the Australian Prudential Regulatory Authority (APRA) regulates insurance under the Insurance Act 1973 (Cth). Insurance contracts are also subject to the Insurance Contracts Act 1984 (Cth).

Some Common Insurances in Australian Business

Professional Indemnity – if a mistake happens in your work that results in financial loss or injury to a third party (e.g. your customer)—that customer may take legal action against you to recover their losses.  Professional Indemnity insurance seeks to protect both your assets and your reputation. Regardless of the size of your business, Professional Indemnity claims can be costly. And even if you are not at fault, you may still need to defend yourself and pay legal costs.

Levels of cover vary and you may need to take into account the risk of your role and requirements of your customer.

Public liability – if someone is injured, or has their property damaged while you are providing a service to them (i.e. your customer), Public Liability provides protection against your legal costs. Like Professional Indemnity, Public Liability claims can be costly, and even if you are not at fault, you may still need to pay legal costs to defending yourself.

Levels of cover vary and you may need to take into account the risk of your role and requirements of your customer.

Workers Compensation – this is a compulsory insurance. if you get injured on the job, Workers Compensation provides wage cover. This is done in exchange for removing the employee’s right to sue their employer. Each Australian State or Territory runs it’s own version of Workers Compensation.

A current Workers Compensation certificate is normally required.

Business Insurance – if your business suffers financially as a result of an event, business insurance can help you recover. Insurance compensates for costs directly related to the event and those that you face if you’re forced to stop trading – because outgoings still have to be paid even when income stops. 

Management Liability – this is Directors and Officers insurance and often includes that and more such as employment practice liability, fidelity, OH&S (occupational health and safety).  All there to protect the management, directors and the organization.

Useful Insurance Links for Business by State and Territory

Australian Capital Territory

Insurance and risk management

Workers Compensation – Approved Insurers

New South Wales

Appropriate insurance

Northern Territory

Insurance for Business

Queensland

Business insurance

South Australia

Insuring your business

Tasmania

insurance and your business

Victoria

Insurance for businesses

Public liability

Western Australia

Insurance for Small Business

 

How can Sherpa Insurance Help?

Sherpa Insurance will provide a free initial consultation for any Australiance customer.

 

Sherpa Insurance and Andrew Bremner Managing Director

Sherpa Insurance provides cost effective business insurance to our customers. Although they have industry specialisation in management consulting, project professional and IT/Cloud, they also work in most other industries as clients require them. They pride themselves in being low fuss and efficient.

Andrew Bremner is the founder and Managing Director of Sherpa Insurance. Andrew has over 20 years experience in finance and insurance and is a member of the Chartered Accountants Australia and New Zealand and holds a Master of Applied Finance from Macquarie University.

Sherpa Insurance Pty Limited ABN 53 134 410 129, AR 468 925 is a Corporate Authorised Representative of Focus Insurance Brokers Pty Ltd.

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