What is business pack insurance and do you need it?

From hospitality and retail to healthcare and manufacturing, every industry faces a range of risks. With the right insurance policy, you can enjoy peace of mind that your business is protected. But what is business pack insurance?

This customisable coverage provides a variety of insurance types under one convenient policy, tailored to the operations at hand. That means you can safeguard your premises, products, people and reputation without the stress.

But with countless policies available from all kinds of insurance providers, it can be difficult to know which solution is best for your needs. We’re here to help. Keep reading to learn more about business pack insurance and whether it’s the right way forward for you.

What is business pack insurance?

Business package insurance is insurance designed to cover a range of risks typical to a wide variety of businesses and occupations. It is designed to protect the insured against losses from fire, storm and other perils and loss of income as a result of such losses.

Business pack insurance is a multi-section policy that also covers burglary and theft, money, glass, machinery breakdown, public liability and other more specific covers.

The cost of business insurance depends on a wide variety of factors including the nature of the business, the location, construction of the premises and more. A professional insurance broker can guide one through the options and complexities to choose a suitable insurer for the risk.

What can be included in business pack insurance?

Business pack insurance can provide protection against a range of risks, including:

1. Business interruption

Business interruption covers the lost income, professional fees and increased costs following an insured event such as fire, storm and water, malicious damage and other perils.

Business interruption will allow a business to maintain an insured cash flow whilst it recovers from the insured event. It can also cover staff wages and other unknown costs that occur after an event.

2. Liability

This refers to compensation payable to third parties for personal injury or property damage that occurs due to your business operations. Such cover can include your legal fees and other costs of defending a claim brought against your business, its employees and any product it produces.

3. Building and business contents

Repair your building, its contents and stock if damaged by an insured event. This may include fire, storm or accidental damage.

4. General property

Repair or replace property that is damaged outside of your premises, such as tools, equipment and electronic devices. It usually excludes stock.

5. Electronic equipment

Repair or replace computers and electronic equipment following fire, theft, accidental damage or breakdown. Examples of eligible equipment include laptops, mobile phones and other digital devices.

6. Machinery

Repair or replace machinery after breakdown, or boilers and pressure equipment damaged by an explosion or collapse. You may also cover refrigerated and frozen goods for deterioration following a breakdown.

7. Theft

Loss or damage to contents and stock following theft or attempted theft at your premises. This cover can include burglary with or without forcible and violent entry, damage to your premises and replacement of locks and keys.

8. Money

Theft, damage or loss to your business money whilst on the premises, in transport to a bank, in a locked safe, in and outside business hours or at the business owner’s residence.

9. Glass

Broken glass or signs, both internal and external. Cover can include the cost to emergency boarding up of exposed window panels, damaged stock, and internal toilets and basins.

10. Tax audit

Cover the costs incurred by your accountant or registered tax agent to conduct an audit or investigation upon notification from the Australian Tax Office. This feature includes all required expenses up to the sum insured to abide by a tax audit.

11. Employee dishonesty

Loss of property as a consequence of employee fraud or dishonesty. Your policy can cover the cost of claims preparation, superannuation losses, welfare and more.

What isn’t covered by business pack insurance

That depends on your business’s unique needs and the customised insurance policy you have taken out.

As there may be some exclusions and limits on cover in certain circumstances, it’s important to explain all of your business activities to your insurance broker. It is important that your insurance broker gain a strong understanding of your business and its operations to ensure all relevant insurance covers are raised and discussed.

With an in-depth understanding of everyday operations and risk exposures, we can help to ensure that your business is fully protected by a comprehensive package.

Advantages of packaging your business insurance

Including all relevant sections applicable to your business will give you the peace of mind that the most relevant covers provided by such an insurance policy are included under one policy.

With good advice, these policies give many businesses the majority of the coverage they need.

The balance of other covers comes with the advice provided by an insurance broker that is relevant to your specific business and its operations.

And by bundling all of your business insurances into one simple package, you can skip the hassle of juggling multiple policies with varying payments at different times. Instead, pay a single premium at an agreed time.

Plus, business pack insurance can be cost-effective. With all kinds of optional cover available, you can personalise the policy according to the exact risks faced by your unique business. As a result, you won’t have to pay for protections you don’t require.

The key takeaway? With this easy and affordable insurance policy in place, you can minimise the financial and operational consequences of unexpected incidents involving your business

Who can benefit from business pack insurance?

Any business, no matter its industry or scale, can benefit from business pack insurance. That’s because this comprehensive and customisable insurance can provide invaluable protection from standard risks, such as unforeseen financial losses, liabilities and legal fees.

You should consider this type of insurance package if you are:

• Already running a small-to-medium business; or
• Intending to establish a new small-to-medium business.

Not sure where to start? Get in touch with Ian Jones Insurance Brokers for tailored advice and guidance today.

An example of business pack insurance in action

Sarah owns a floristry business. One Saturday, a courier accidentally crashed into the front door of her store and broke its glass. As well as injuring a customer, some of the shards fell into surrounding bouquets, rendering them unsellable.

Sarah soon discovered that repairing the front door would take two weeks, during which she would be unable to welcome customers inside and earn her usual income.

The good news is that Sarah had taken out a business insurance package before this incident took place.

Her package included insurance cover for broken glass, business interruption and public liability. Thankfully, this meant that Sarah could still receive an income and pay her staff while the store’s front door was being fixed. She could also cover the costs of responding to the customer’s public liability claim.