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FAQs

Why take out insurance for your business?

Running a business is risky, and often involves putting your own finances at risk. Trying to work out what insurance you need when starting out or even later is difficult. However, running a business with basic insurance is a smart way to manage the risks and reduce uncertainty.

What to insure and for how much?

If you’re starting out, working out what to insure against before you’ve even made a profit is hard. Will you insure for every possible risk, or just the most likely? Which are more likely in your business? How much cover do you need? If you over-insure you waste money, and if you under-insure and then make a claim, the insurance company can reduce what they will pay you. This information sheet lists the common risks you can insure for and suggests how to get the best deal.

What is ‘under-insurance’?

When you take out a policy for a certain amount of cover, and it’s less than the value of what’s being insured, the insurance company can (legally) reduce what it pays you for any claim, including small claims. Insurance companies use different ways to work out how much they’ll reduce a claim by if you’re under-insured. Check your policy for details.

What insurance do I need by law?

If you employ staff, by law your business needs WorkSafe Injury Insurance in case they’re injured. If you’re an employee of your own incorporated company, you’ll need WorkSafe Injury Insurance to cover yourself. If you’re a sole trader or in a partnership, you’re not eligible for WorkSafe Injury Insurance, so a wise move is to get sickness and accident insurance. Sole traders and partnerships should also consider income-protection insurance. Even though not legally required, operating without a public liability policy for the business is not recommended.

You can tailor a policy to suit your business Insurance?

Policies can be changed to suit your needs. If a policy doesn’t cover a particular risk in your business, you can ask to have a separate clause added to the policy. To save money and avoid buying policies you don’t need, consult with an insurance broker or get quotes from several insurance companies.

Packaging several policies together is generally cheaper?

Try to buy your insurance from a company normally offering business insurance instead of one selling mainly domestic insurance. Combined types of insurance (small business ‘packs’) are available. Some examples of these are commercial, shop, retail, industrial, office, trades, and business vehicle insurance.

Payments (premiums) can be paid in instalments?

Insurance companies often let you pay premiums in monthly instalments but some will charge for this.

Want to contact us?

For more information about Personal Insurance, call Select Insure on 1300 921 998

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