Insurance for your Home Based Business.

Insurance is a wasted purchase if it doesn’t provide cover when disaster strikes. Many people unwittingly expose themselves to financial loss, by underinsuring, because they did not seek impartial advice.

Whether you are arranging car, house or business insurance, the only impartial insurance professionals in Australia, in law and practice, are insurance brokers. Brokers represent you, the buyer. They shop around, provide advice, arrange the insurance and help with claims. It’s a broker’s job to provide you with the most appropriate protection, at a price that suits your budget.

Arranging insurance is no easy matter. There are so many types of cover that it’s hard to know what you may or may not need. Then there’s the fact that no two policies are ever alike.

To help you, we’ve created a list and brief explanations, of some of the most common and important types of policies for your business and professional needs.

 Remember, because so much technical jargon is used and so much is contained in fine print, a broker can help you understand and avoid the many pitfalls and traps that the average consumer can fall into when buying insurance.


You can suffer financial loss through underinsuring


 Regretfully many small business close their doors, never to re-open, following a major disaster such as a fire, or an extended court case or period of business interruption. This is usually due to inadequate insurance.


Advice from the team at Fraser Insurance Brokers, can go a long way to prevent business failure through inadequate insurance. The team can supply information so that you can make informed decisions about what to insure and which risks to accept manage and minimise.

 Basically insurance risk falls into three categories.

  • Assets and Revenue- things the business owns and its revenue generating capabilities
  • Liability – legal obligations arising from injury to others or damage to property
  • Personnel – Protection against loss arising from personal accident or illness involving yourself or your employees

Below is an alphabetical list and brief explanation of the types of insurance contracts most commonly used by small businesses. All businesses are different and their insurance needs vary accordingly.

Business Interruption: Provides cover if business is interrupted through damage to property by fire or other insured perils. Cover ensures on going expenses are met and anticipated net profit is maintained through a provision of cash flow.

Burglary: Covers the following areas when theft occurs involving violent, forcible entry. Loss or damage to stock, goods held in trust and all contents for which you are responsible within the premises are some examples.

Employment Practices Liability: A relatively new type of insurance, to protect employers against claims and legal costs by employees arising out of inappropriate conduct in connection with their employment. This could include, for example, sexual harassment, wrongful dismissal, or discrimination on the basis of age, race, sex or religion.

Engineering Equipment: Some plant must be inspected and certified annually. Cover is usually obtained within an engineering policy, which covers equipment against such risks a breakdown and explosion.

Fire & Perils: Covers destruction of, or damage to, property and contents through fire and other perils such as lightning, explosion, malicious damage, earthquake, storm and water damage.

NB flood caused by overflowing watercourse, such as a creek or river, is not covered by most standard fire and perils insurance contracts.

Goods in Transit: Cover against loss or damage to your property while in transit – either within Australia or on a worldwide basis.

Keyman Insurance: Covers the company in the event of the death or long-term disablement of a ‘keyperson’- such as the owner or someone else critical to the business’ continued existence.

Loss of Money: Cash and items such as postal orders, cheques, credit card vouchers and stamps are insured against theft from business premises, home premises or whilst in transit.

Motor Insurance: All company/business vehicles must be insured for third party injury liability. A comprehensive cover will also insure for third party property damage and own damage as well as damage to property.

Personal Accident, Illness or Disability: Covers against your inability to work and the resulting loss of income. Unless you operate through a Proprietary Limited company, you personally will not be covered by workers compensation. Secondly workers compensation only covers working hours.

Products Liability: If you sell, supply or deliver goods, even in the form of repair or service, you will require cover for goods causing injury or damage to persons or property.

Professional Indemnity: Business which provide advice of any kind can be sued for financial loss due to errors or omissions.

Public Liability: This provides cover for injury to persons or damage to property while on your premises or while you are working at their premises.

Workers Compensation: This cover is compulsory. It covers claims arising from the death, injury or illness of employees arising out of their employment.

Other Insurance Products:
In addition to those listed above, it is possible to have an insurance product designed to respond to almost any financial risk exposure (possible loss or damage) that your business may experience.

The list below gives some of the specialist insurance products available

Property and Financial:

  • Business machines and equipment
  • Computer and computer records
  • Contract works
  • Credit/bad debts
  • Extortion Kidnap and Ransom
  • Fidelity guarantee
  • General property
  • General Property
  • Glass or sign breakage
  • Legal expenses/tax audit
  • Office Pak
  • Perishable food or other stock deterioration
  • Retail Pak
  • Specified accidental damage
  • Travel

Legal Liability:

  • Advertising
  • Commercial Legal Expenses
  • Directors and Officers
  • Environmental Impairment
  • Libel and Slander
  • Products Guarantee
  • Products recall
  • Umbrella Liability

Not all of these covers may apply to your particular circumstances. However, as business is continually changing, we suggest that this listing be reviewed on a regular basis to ensure that it is satisfactory for these risks to remain uninsured. Additionally, should a financial exposure exist which is not listed here, we would be pleased to investigate availability of protection against such risk exposures.

For more information or assistance contact

Fraser and Associates Insurance Brokers