Other Business Insurance Types

Qld Business OwnerOur website is all about public liability, but it’s also important for Qld businesses to consider other forms of cover.

In this guide we’ll look at some of the other forms of business insurance available.

Which of these insurance types are necessary for your business will depend on the type of business you operate, but it will give you an overview of the covers available.

Property Damage

Once you’ve insured yourself against damaging other people’s property (via public liability insurance) the next step is to insure your own property.

Property damage insurance will cover your business property from a range of risks including fire, storm and malicious damage.

Cover for flood damage is also available, but keep in mind that not all business policies provide full flood coverage, which is especially important for businesses located in Queensland.

Theft, Glass & Money

These are actually three separate covers, but they are typically bundled together under a business pack.

Theft will cover your contents and stock in the event of burglary, whilst glass provides cover for all fixed glass within your premises such as windows and shelving.

Money covers a set level of cash held on your premises or in transit either to or from your premises.

General Property

General property insurance is separate to your standard property damage and theft covers, and is designed to protect your portable items such as tools or laptops.

The cover is more expensive than the standard property options, but does have the added benefit of protecting your tools and equipment anywhere in Queensland or around the country.

Professional Indemnity

In some ways this insurance is similar to public liability, but whilst public liability covers your physical actions, professional indemnity covers the advice or service you provide.

That’s quite a simplistic way of putting it, but it gives you an idea of what is covered.

Professional indemnity is generally only required if you provide a professional service, such as an account, solicitor or anyone else who charges for their advice.

Business Interruption

If you operate your business from dedicated premises, business interruption can protect you in the event that you cannot operate from the premises.

A claim would occur if your premises where damaged by fire or storm for example, and your business lost revenue due to not being able to trade for a period of time.

Other covers

There are other forms of cover available, and we recommend speak with a broker about which forms of insurance are right for your business.

For more information about the other covers available to Qld businesses please contact us.

How do I get public liability insurance?

Brisbane Public Liability InsuranceThe internet has made it very easy to get covered for public liability insurance.

But whilst it’s easy to get cover, it’s more important to make sure you’re getting the right cover.

There are a few options for comparing and taking out a policy, and in this guide we’ll run through those options and tell you which one we think is best.

Obtaining and comparing quotes

Step one is to get a quote on your insurance.

There are three main options for obtaining quotes, as we have detailed below:

  • Contact an insurance company directly
  • Contact an insurance broker
  • Use an online service

If you have little or no understanding of business insurance, and are not interested in learning, then your best option is probably to use an insurance broker.

The broker will be able to speak to you about your needs, recommend a suitable policy and provide you with quotes, and then put the cover in place if you wish to do so.

If you’d rather be more hands-on with your insurance you can ring around to a few insurance companies yourself.

The insurance companies will provide you with quotes either via their call centres or their websites, but it’s important to remember that unlike a broker they will not be able to give you any advice.

An increasingly popular option is the use of websites to obtain and compare public liability insurance quotes.

If you’re going with this option it’s important to make sure you are dealing with a reputable website, preferably one that is run by a licensed insurance firm.

Going ahead with a policy

Once you’ve compared the quotes and have decided on a policy, the next step is to go ahead with a policy.

The method for this step depends largely on how you obtained your quotes.

If you obtained quotes via an insurance broker, they will walk you through the process of taking out the policy.

If you received your quotes directly from an insurance company you would contact them to proceed, and if you used a website generally they will have functionality allowing you to proceed online.

In most cases you will be required to complete an additional form known as a proposal.  This basically just confirms the information that you provided during the quote stage.

After that you just need to pay for your policy, and you’ll have a nice new certificate of currency which confirms your business insurance arrangements.

Which is the best option?

The best option to get public liability insurance really depends on your own preferences.

If you are not comfortable with insurance matters and just want to make sure everything is done correctly, then using an insurance broker is undoubtedly the best option.

In some cases it may be slightly more expensive to use a broker, but at least you know it will be done properly, and the time savings will most probably make up for the additional cost anyway.

For business owners who care more about price than anything else, then contacting an insurance company directly or using an online service could be the way to go.

It’s important to remember however that the call centre staff used by the direct insurance companies are generally not qualified or authorised to provide personal advice, so any decisions you make are really on your own head.

The websites can be a bit of a mixed bag.  Some of them simply gather leads and sell the details to other parties, whilst others have their own complex (and very impressive) online quoting systems.

Using a website could be a good idea, but it really depends on the website and whether or not it’s a ‘good’ one.

Qld Stamp Duty Changes to Insurance

Insurance PolicyFrom the first of August 2013 the stamp duty charged on insurance by the Queensland Government will be increasing.

These changes were announced as part of the 2013-14 budget handed down by the Treasurer earlier this month.

Previously most business insurance policies, including public liability insurance, attracted stamp duty of 7.5%.

Other forms of insurance, including professional indemnity insurance, attracted stamp duty of just 5.0%.

With the changes coming in August this year, all forms of insurance (with the exception of CTP) will be charged stamp duty of a rate of 9.0% including GST.

As far as business insurance goes, the changes represent a 20% increase for public liability and a whopping 80% increase for professional indemnity.

Although this seems like a fairly hefty increase, a letter issued to businesses by the Office of State Revenue was quick to point out that the new rates are equal to those charged in NSW and lower than those charged in all other states.

It is certainly a kick in the guts for Qld small businesses, and there is a risk that it will lead to more businesses choosing to operate with either no insurance or inadequate insurance.

In reality the increase in dollar terms will be fairly minor, but in small business every single dollar counts.

New Stamp Duty Rates

The insurance stamp duty rates from 1 August 2013 are as follows:

  • Class 1 General Insurance – 9.0%
  • Class 2 General Insurance – 9.0%
  • Compulsory Third Party Insurance – 10c per policy

Note:  Insurance stamp duty is charged as a percentage of the premium paid and includes GST.

Previous Stamp Duty Rates

The insurance stamp duty rates prior to 1 August 2013 were as follows:

  • Class 1 General Insurance – 7.5%
  • Class 2 General Insurance – 5.0%
  • Compulsory Third Party Insurance – 10c per policy

What’s the Difference Between Class 1 and Class 2?

This question is somewhat irrelevant now since class 1 and class 2 general insurance are both charged stamp duty at the same rate, but here is the answer anyway:

Class 1 – All general insurance types other than class 2 general insurance and CTP insurance.

Class 2 – All general insurance types relating to the following:

  • Professional indemnity insurance
  • Personal injury insurance relating to aircraft travel
  • Motor vehicle insurance other than CTP
  • Home mortgage that is a first mortgage
  • Life insurance riders

More Information

For more information about the Qld stamp duty changes and how they affect your business insurance please contact the Office of State Revenue or your insurance broker.

Vero Insurance

Vero Commercial Insurance Qld

One of Queensland’s largest providers of public liability insurance is Vero.

Vero are based right here in Brisbane, and they are part of one of Queensland’s most iconic financial services companies – Suncorp.

Further cementing their place in Qld, Vero are also a major sponsor of the Brisbane Lions AFL team.

Along with public liability, they provide a range of other business insurance types to assist businesses in Qld and around Australia.

Public Liability Insurance

The public liability cover offered by Vero is generally no different to that which is offered by most other reputable insurers.

Where Vero excels is in areas such as customer service and claims, and if your business is located in Qld they have the added benefit of local knowledge since they are also based in Qld.

Vero provides public liability insurance for virtually all occupations and business types, from tradies through to professional service providers.

Vero are also one of the few insurers who offer a policy which meets the Qld electrical contractors licence requirements.

Other Forms of Cover

As well as providing liability cover, Vero provide a full range of covers to suit many different business types.

Vero can assist with professional indemnity insurance, business interruption insurance and a range of commercial building and property covers.

Whether you operate as a sole trader doing consulting work from a home office, or run a national company importing and exporting goods around the world, Vero have policies that can assist you.

Contact

Vero deal exclusively with insurance brokers and other intermediaries, and do sell insurance policies direct to the public.

If you would like a quote on insurance provided by Vero, or would like to take out a new policy, you should speak with a local insurance broker who deal with Vero.

As one of Australia’s largest providers of commercial insurance, virtually all insurance brokers will be able to assist you with a Vero policy.

Although new policies cannot be taken out directly through Vero, they will still be there (along with your broker) to assist you in the event of a claim.

If you like the idea of supporting a Qld company, then give Vero a try next time you need to take out or renew your business insurance policies.