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Fact Sheet - Business insurance

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Last updated on December 15, 2015

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Insurance is an essential part of reducing risk, particularly those that may accompany a natural disaster. Your insurance requirements will vary depending on the type of business you have. In general, you must have the following types of compulsory insurance:

  • workers compensation – if your business has employees
  • third party personal injury insurance – if your business has motor vehicles
  • public liability insurance – for certain types of businesses.

Although not compulsory, you may like to consider insuring your assets, revenue and liabilities to protect your business against potential risk, such as those that may arise from a natural disaster.

Be sure to review your insurance policy carefully as coverage will vary from one insurer to another. For further information on insurance, visit www.business.tas.gov.au

Personal and workers insurance 

Compulsory

Workers compensation

It is compulsory to have workers compensation insurance if your business has employees.

Not compulsory, however, all options should be considered

Income protection or disability

May cover part of your normal income if you are prevented from working due to sickness or injury.

Trauma insurance

May provide a lump sum if you should be diagnosed with one of several specified life threatening illnesses.

Term life insurance

May provide your dependents with a lump sum if you were to die.

Permanent disability insurance

May provide a lump sum in the instance that you are permanently disabled before retirement.

Asset and revenue insurance 

Compulsory

Motor vehicle

It is compulsory to insure all company or business vehicles for third party injury and liability. Insurance includes compulsory third party (injury), third party property damage, third party fire and theft and comprehensive.

Asset and revenue insurance  

Not compulsory, however, all options should be considered

Building and contents

May cover the building, contents and stock of your business against fire and other natural disasters.

Burglary

May insure your assets against burglary.

Business interruption

Meets your expenses and maintain cash flow if your business is interrupted by an unforeseen event such as a fire.

Stock deterioration

May cover your business for the deterioration of refrigerated stock.

Electronic equipment

May cover your electronic equipment for theft, destruction or damage.

Employee dishonesty

May cover losses resulting from employee theft or embezzlement.

  Farm insurance

Insurance for farms which may cover things such as crops, buildings and machinery.

Goods and or property in transit

May cover loss of, or damage to, goods you buy, sell or use in your business when they are in transit. May also cover the theft or damage of items you use for business purposes that travel with you.

Machinery breakdown

May insure your business when mechanical or electrical equipment used in your business breaks down.

Liability insurance

Compulsory

Public liability insurance

May cover financial risk of third party death or injury, loss or damage to property and economic loss from your businesses' negligence. Public liability insurance is usually optional; however, in some situations it may be compulsory.

Not compulsory, however strongly recommended in all industries

Professional indemnity

May protect advice-based businesses from legal action taken for losses incurred as a result of professional negligence.

Product liability

May cover claims of goods causing injury, death or damage.

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