Allsure Insurance Director Melissa Donaldson writes frequent posts with some of her top ‘insurance 101’ tips for a social media group that she’s involved with. Well, we thought some of them were pretty swell, and likely to be the same questions that others may have!
See below for some of the most recent Q&As – and if you have any questions you’d like to add to the list for our next tips round up, just let us know!
I run a business from home. Do I need to do anything different with my insurance?
For example. If you run a business from home, make sure your household insurance covers your business items, stock etc. If not, you may need separate cover. Your household liability won’t cover your business liability if you need it.
What’s the best way to make sure I have my business portables covered, such as iPhones, laptops, etc…?
If you have only a few to cover, a good household policy may cover it, usually an accidental damage type of cover. You will need to read wording to make sure it does cover ‘business items.’ We know, super damn boring, but that’s why you come to someone like us – a bit geeky and reads that stuff for fun! [Yes we need to get out more.]
Remember, however, to consider the excess you will have to pay in the case of a claim.
Secondly, you could take out ‘general property’ insurance, that will cover a wider range of business portables and usually have a lower excess than your home policy. This section is typically added to a business liability policy.
What’s the best way to go about getting life insurance and trauma cover?
We’d recommend a good financial planner! They may be able to make sure the cover sits within a super policy, as this could be a cost effective way to have cover. We also have a program where a life insurance broker can arrange cover for you. We generally do recommend that these covers form part of your financial plan.
Please note that wherever you go for advice, they’re likely to ask in depth, personal questions. This can help make your rates fair (i.e. if you don’t smoke it’s likely to save you money).
Do I need professional indemnity insurance?
Do you offer your clients advice? Do you give them directions to follow, recommendations? Are you a consultant or perhaps an advertising agency? You probably need professional indemnity insurance (or at least to speak to your insurance broker about it). It can be somewhat of a ‘forgotten cover’, but could leave your business very exposed if you don’t have it.
Do I need product insurance?
If you make products, the liability for them may be covered under your public liability. Also if you import into Australia, you are considered the ‘manufacturer’ and need to have product liability coverage.
What information do I need to know to get appropriate public liability cover?
Know your numbers! The insurance companies use your turnover figures to help determine their exposure in your public liability cover. So get clear on your numbers, it may save you money or at least make sure that you’ve got the right level cover.
A bit of trivia – do you know where insurance contracts started?
Modern insurance contracts started in the mid 1700s, at Lloyds of London. Essentially the contracts were taken out in the local coffee houses on the boats and the cargo they were delivering. Lloyd’s is still an insurance company today. We take our coffee seriously, too, and have an in house barista at our office, if you are ever in the area pop in for a coffee! 🙂
What is accidental damage cover?
We have ALL done this at some stage. Did your insurance cover the cost of having your carpets cleaned? Or even replaced if it didn’t clean out? Accidental damage cover might have saved you the pain and some $$.
What are the benefits of a corporate travel insurance policy?
Did you know that if have an ABN, you maybe able to have a corporate travel policy? This is a yearly policy, that covers you for business and leisure, overseas, interstate and intrastate. It can also include your family when travelling with you!
Remember we don’t know your circumstances, so this is just some general information. Talk to a insurance broker!
What happens to your premium if you double your public liability insurance coverage?
Did you know your premium isn’t likely to double between $10 million coverage to $20 million? It’s usually just a small increase. Let’s face it, if you had a serious claim against your liability, you would want the right level of cover (and believe us, it does happen). You finding the difference between the 10 to 20 million from your back pocket is huge!
I run a business from home – does that change my liability insurance requirements?
Your insurer does like to know if you run a business from home, as it can add to the liability risk for them. Don’t assume your home liability will cover your business/product liability. Having home contents cover may not cover your businesses stock either.
Remember to always read your insurance policy wording, or talk to someone who understands the wordings and can answer your questions!
General advice warning
The information above may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information.
Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.