Business pack insurance: what it covers and who carries it

What is typically inside

The sections are chosen at the time the policy is arranged, and an unselected section simply is not there. The schedule lists which are operative and what each is limited to.

That is why two businesses with the same pack from the same insurer can have entirely different answers to the same claim.

• Property — building, contents, stock
• Public and products liability
• Business interruption
• Theft, money and glass
• Machinery or electronic equipment breakdown

Where packs stop fitting

Packs are built for common shapes of business. A business with unusual stock, significant contractual liability, professional advice exposure or work at height frequently sits outside what a packaged product was priced for.

The signal is usually a broker or insurer asking questions the online form did not, which is a reason to answer them rather than to look for a simpler form.

What people get wrong about it

The first error is assuming the pack includes professional indemnity. It generally does not, and businesses that both make things and advise on them frequently need both policies.

The second is treating the total sum insured as the amount available for any claim. Each section is limited separately.

The third is leaving the contents figure at whatever it was when the business started, so the pack describes a smaller business than the one that exists.

Questions

Does a business pack include professional indemnity?

Usually not. Packs typically cover property, liability and interruption. Professional indemnity is generally a separate policy because of its claims-made structure.

Is a business pack enough on its own?

That depends entirely on what the business does and what its contracts require, which is a question for somebody licensed to advise. What a pack contains is set out section by section on the schedule.

Clauses that turn up in this cover

• Excess or deductible — The amount the insured bears before the insurer pays, sometimes varying by claim type.
• Duty to take reasonable care not to make a misrepresentation — The insured’s obligation when applying for or renewing cover, and the consequences of getting it wrong.
• Average or co-insurance — A clause reducing a claim payment proportionally where the sum insured is less than the value at risk.
• Product Disclosure Statement — The document setting out a retail insurance product’s terms, benefits and exclusions.
• Financial Services Guide — The document a licensed intermediary gives explaining its services, remuneration and complaints process.
• Target Market Determination — The document describing the class of customers a financial product has been designed for.

Occupations that commonly carry it

Ordered by how central this cover is to each occupation in the graph. A pattern in the data, not a statement that any business is required to hold it.

• Retailers — Shopfront sale of goods, with stock, customers and a lease to manage.
• Online retailers — Sale of goods online, carrying product and data exposures without a shopfront.
• Market stallholders — Trading from temporary stalls at markets and events, usually under organiser conditions.
• Wholesalers and distributors — Supply of goods to other businesses, carrying products liability down the chain.
• Cafe operators — Coffee and light food service with customers on the premises.
• Restaurant operators — Full food service, usually with a liquor licence and commercial kitchen.
• Caterers — Preparation and service of food off-site, at venues and private homes.
• Food truck operators — Mobile food service, trading across council areas and at events.
• Bakers — Production and retail of baked goods, with allergen and labelling obligations.
• Butchers — Preparation and retail sale of meat, licensed for food handling.
• Bar and pub operators — Licensed venues serving alcohol, with responsible service obligations.
• Breweries and distilleries — Production of alcohol for sale, with excise and licensing obligations.
• Accommodation providers — Motels, holiday letting and short-stay operation with guests on site.
• Mechanics — Servicing and repair of vehicles in a workshop, in customers’ custody.
• Mobile mechanics — Vehicle servicing performed at the customer’s home or workplace.
• Auto electricians — Diagnosis and repair of vehicle electrical and electronic systems.
• Panel beaters — Collision repair and refinishing, working on vehicles owned by others.
• Tyre fitters — Supply and fitting of tyres in workshop and mobile settings.
• Car detailers — Cleaning and paint correction of vehicles, mobile and in premises.
• Hairdressers — Cutting, colouring and treatment services in salon and mobile settings.
• Beauty therapists — Facial, waxing, lash and body treatments performed on clients.
• Nail technicians — Manicure, pedicure and enhancement services, often in shared premises.
• Tattooists — Licensed tattoo and body-art work, regulated for skin penetration in every state.
• Cosmetic injectors — Injectable cosmetic treatment delivered under clinical supervision.
• Dog groomers — Grooming and washing of animals in salons and mobile vans.
• Pet sitters and dog walkers — Care and exercise of animals in the owner’s absence.
• Funeral directors — Arrangement and conduct of funerals, holding prepaid money in many cases.
• Personal trainers — One-to-one and small-group fitness instruction in gyms, parks and homes.
• Gym operators — Operation of fitness facilities, including unstaffed access hours.
• Yoga and pilates instructors — Class-based instruction in studios, halls and outdoors.
• Sports coaches — Coaching of individuals and teams, frequently involving minors.
• Electricians — Licensed electrical work, from domestic fit-outs to commercial and industrial installation.
• Plumbers — Licensed plumbing, drainage and gas-fitting work across domestic and commercial sites.
• Carpenters — Structural and finish carpentry, framing, formwork and fit-out.
• Builders — Licensed building work as principal contractor on residential or commercial projects.
• Handypersons — General maintenance and repair work below the licensing thresholds of the specialist trades.
• Roofers — Roof installation, restoration and plumbing-adjacent roof drainage work at height.
• Painters — Interior and exterior painting and decorating, domestic and commercial.
• Tilers — Wall and floor tiling, waterproofing-adjacent work in wet areas.
• Landscapers — Hard and soft landscape construction, including retaining, paving and irrigation.
• Concreters — Formwork, placement and finishing of concrete slabs, driveways and structural elements.
• Scaffolders — Erection, alteration and dismantling of scaffolding, a high-risk licensed activity.
• Welders — Structural and fabrication welding, including hot work on site.
• Solar installers — Design and installation of photovoltaic and battery systems, an accredited electrical specialisation.
• HVAC technicians — Installation and servicing of heating, ventilation, air conditioning and refrigeration plant.
• Earthmoving contractors — Excavation, bulk earthworks and site preparation using mobile plant.
• Demolition contractors — Licensed demolition and strip-out, including work adjacent to hazardous materials.
• Arborists — Tree assessment, pruning and removal, frequently near structures and services.
• Pest control technicians — Licensed application of pesticides and termite management for domestic and commercial property.
• Bricklayers — Brick, block and masonry walling for residential and commercial structures.
• Plasterers — Wall and ceiling lining, cornice, rendering and set finishing.
• Glaziers — Supply and installation of glass in windows, doors, shopfronts and balustrades.
• Waterproofers — Membrane and tanking work to wet areas, balconies, roofs and below-ground structures.
• Stonemasons — Cutting, dressing and installing natural and engineered stone, including benchtops and cladding.
• Cabinet makers — Manufacture and installation of joinery, cabinetry and built-in furniture.
• Shopfitters — Fit-out of retail and commercial tenancies, usually working to a landlord’s conditions.
• Flooring installers — Laying timber, vinyl, laminate and carpet in domestic and commercial spaces.
• Insulation installers — Installation of thermal and acoustic insulation in roofs, walls and subfloors.
• Fencing contractors — Boundary, security, pool and rural fencing, including gates and automation.
• Paving contractors — Laying pavers, kerbs and hard surfaces for driveways, paths and public areas.

Sources

• Moneysmart (ASIC) — General guidance on business insurance from the regulator’s consumer site. A starting point, not a definition of this cover.