Manage your business insurance

Talk to several registered insurance companies and brokers to discuss which insurance policies are best for your business.

Insurance brokers can access policies from multiple insurance companies to help you get the best deal. Brokers must have a current Australian Financial Services (AFS) licence. Check their AFS status on the Australian Securities and Investments Commission’s professional register.

An insurance policy is a legal contract between you and the insurance company. You both need to comply with your responsibilities for the contract to be valid.

An insurance company must give you a product disclosure statement (PDS). This explains in clear words the terms and conditions of your policy.

Before you buy an insurance policy, read the insurer’s PDS. You’ll need to understand:

• what the policy covers and any exclusions
• any definitions. Often these are words in bold or capital letters
• what events the policy insures. For example, fire and theft
• how the insurer settles a claim. For example, repair, replace or cash
• any excess amount you’ll need to pay
• your and the insurer’s cancellation rights
• the complaints process
• what you need to tell the insurer when you take out the policy
• what information you need to keep updated.

Get professional help if you don’t understand something in the PDS.

Your insurer may not pay your claim if you haven’t met the terms and conditions of your insurance contract.

Check your PDS for the terms and conditions relevant to your policy. It could be something you need to do or information you need to keep up to date.

For example:

• have smoke alarms in your building
• pay your renewal fee by the due date
• tell your insurer your vehicles are no longer kept in a locked garage
• take reasonable measures for the care, safety, and maintenance of your property.

Once you have your insurance, review your policies regularly to make sure you stay covered.

It’s good practice to review your policies when your business changes or before you renew a policy.

Think about any changes that could affect your current policy or the type of cover you need.

For example:

• your business moved to a new property
• the number of employees changed
• you’ve started offering new goods or services
• you’re using new business practices
• you bought or sold equipment, including vehicles.

If you need help, talk to one or more insurance companies or brokers.

Check the value of your assets

The insurable value of many assets goes down over time.

Insurance contracts don't usually compensate for depreciation or a change in market value. Review the value of your assets to make sure you have the right level of cover.

Contact your insurer as soon as possible if you need to make a claim. Check your policy for any time limits to lodge a claim.

Tell your insurer:

• how the incident happened
• when it happened
• how it will affect your business.

Your insurer will ask you for supporting documents. This might include:

• photos of damage
• proof of ownership
• copies of computer records
• contracts between you and a claimant.

Some events also need to be reported to the police or other authorities. Ask your insurer if you’re not sure who else to report the incident to.

You can dispute a claim if you disagree with your insurer’s decision. Contact your insurer and tell them:

• that you’re lodging a dispute
• what the problem is
• what you would like them to do to fix the problem.

If you don’t agree with the dispute outcome, you can contact the Australian Financial Complaints Authority (AFCA). AFCA helps small businesses resolve complaints with financial companies.

If you disagree with a workplace injury claim decision, ask for a review from the workers compensation regulator in your state or territory.