Business insurance

Workers' compensation is a compulsory insurance payment to employees if they are injured at work or become sick due to their work.

It is also available to your workers if they are injured in an accident on the way to or from work, or during their lunch break.

Workers' compensation includes payments to employees to cover their:

• wages while they are not fit for work
• medical expenses and rehabilitation.

Employers must take out workers compensation insurance to cover themselves and their employees.

Contractors and sub-contractors are usually considered workers when they are engaged to perform work on behalf of a business.

Read more about workers' compensation.

Product and public liability insurance covers your potential liabilities to third parties for personal injury or damage to property. The difference is that product liability relates to injury or damage caused by any products you distribute, supply or manufacture and public liability relates to injury or property damage whilst you’re on the job.

All cars and motorbikes must have CTP insurance, whether it is for business or personal use.

You can select your insurer when you register your vehicle, or remain with the insurer on the registration documentation.

Compare insurers at the Queensland's Motor Accident Insurance Commission.

Product liability insurance covers your potential liability if your product causes harm, loss or damage because it was not correctly manufactured or installed.

Example: your customer suffers an electrical shock after buying a faulty toaster from you.

By law, an insurance broker must represent your interests. Insurance brokers do not work for a particular insurance company and can give you technical advice that can be very useful if you need to make a claim.

Public liability insurance covers your potential liabilities to third parties for personal injury or damage to property if you are negligent.

Example: when showing a customer through your kitchen manufacturing premises, they are injured by sharp edges on your machinery.

Professional indemnity insurance covers negligent acts, errors and omissions when you provide professional advice or services.

Example: your financial service business has provided advice that leads to your client losing money. They purchased stocks and shares on your advice, and your advice was 'faulty'.

Professional indemnity insurance can cover you, up to the limit of the cover, for:

• your legal defence costs
• the third party's legal costs
• any court awards made against you.

Directors' and officers' liability insurance protects company directors and board members.

Company directors and board members are expected to act in good faith. This insurance does not cover fraudulent or other deceptive conduct.

To prevent risk the Australian Securities and Investments Commission (ASIC) sets out key responsibilities of company directors.

Business interruption insurance can cover costs if your business is out of action due to certain events or risks. This may include the costs of:

• rebuilding your premises
• finding and outfitting new premises
• staff.

Example: your restaurant is interrupted when a fire starts in your commercial kitchen. You must close for a few months for repairs and refurbishment.

You may need to select an 'indemnity period', which is the period of time you want to cover your business for loss of gross profit.

Property damage insurance covers damage to your business property from fire, storms or explosions, including your buildings, contents and stock.

Example: your winery building is damaged by a cyclone, which ruins the roof and walls, and all wine bottles are destroyed.

Note: This type of insurance does not cover floods.

Glass and sign insurance covers loss of, or damage to, glass windows, signs, and showcases at your business premises.

Example: your business storefront is damaged by stones thrown up by a passing truck.

Burglary and theft insurance covers losses in the event of a robbery on your business premises.

It may cover:

• temporary protection of your premises
• personal property of your employees
• external fixtures and fittings attached to the premises
• replacement or modification of locks in the event of stolen keys
• replacing or restoring your business records.

Tax probe or tax audit insurance covers the professional and accountant's fees you incur if your business's financial or tax affairs are audited by the Australian Taxation Office (ATO) or other agency.

Example: the ATO audits your business and you need to engage an accountant and auditor to work through your records and provide a report.

Money insurance covers cash in transit, on business premises and in personal custody.

It covers any losses including from the auto teller to the opening of the bank the following day.

It does not cover money loss caused by your negligence such as:

• clerical or accounting errors
• if a vehicle is stolen while left unattended
• if keys to money storage areas are not kept in a safe.

Example: you take the cash from your till to the bank after business closes for the day. On the way to the bank, your banking bag is stolen.

Fidelity guarantee insurance covers fraud or dishonesty committed by employees.

Example: your business has a manager that dishonestly changes the payment details on your business invoices to their personal BSB and account number. Money from customers is sent to the manager's personal bank accounts.

Electronic breakdown insurance provides specialised cover for computers and machinery.

Example: your factory experiences a major equipment breakdown caused by an internal fault. Your equipment has been serviced regularly, so this internal fault is unexpected.

This insurance will cover the repair or replacement of the equipment.

General property insurance covers items including tools, equipment, mobile phones or stock samples. This replacement policy aims to replace or restore property as new.

These policies may have an upper limit on the amount payable. Make sure you're aware of the current costs of your property, so that you're insured for an appropriate amount.

Marine, cargo, and transit insurance covers goods in transit and the supply chain.

Example: your commercial boat and cargo are lost at sea.

This type of insurance covers vessels and cargo across Australia and internationally, and includes a range of insurances to cover door-to-door deliveries across all types of transport (e.g. road, ships, train).

Employment practices liability insurance covers damages and costs resulting from situations such as discrimination, unfair dismissal, bullying, and harassment.

Example: your staff member claims a manager has been harassing and bullying them and then unfairly dismissed them.

Read more about preventing these risks in the Small business handbook (PDF, 2.1MB) from the Queensland Human Rights Commission.

Natural disaster insurance covers events such as floods, bushfires and cyclones.

Example: your business is impacted by a biosecurity issue beyond your control and your livestock must be destroyed.

While not all natural disasters (e.g. flood) may be covered by your insurance policy, it is still wise to have business continuity insurance that will allow you to resume trading as quickly as possible.