Business contents insurance

What are business contents?

Business contents are everything you use in the office or wherever you operate your business. This can include computers, office equipment, furniture and equipment, as well as the personal belongings of customers for which you are responsible.

If you add portable contents cover to your policy (sometimes known as portable equipment insurance) business contents can also include the items you take out and about with you, like your laptop, mobile, camera and tablet.

What's covered by business contents insurance?

Business contents insurance is designed to protect the possessions and equipment kept at your business's premises. It can cover you for loss or damage caused by:

Optional add-ons

• Cover for items at a different location. You can also take out cover for contents that have been temporarily moved to a different location away from your business premises.
• Breakdown of machinery. Breakdown of machinery and electronic equipment can be added on with some policies.

Make sure you read the general exclusions section of the insurer's PDS

Finder research shows that around 1 in 4 Australians don't read their PDS. Taking the time to check policy inclusions and exclusions helps avoid unexpected surprises at claim time.

How much does business contents insurance cost?

If you're looking to take out insurance cover for your business contents, keep in mind that there are a wide range of factors that can influence just how much your policy will cost. Of course, the amount of insurance you wish to take out is obviously going to have a bearing on how much you have to pay for premiums, so it's important to work out exactly what level of cover you need and can afford.

Size of Business

The nature and size of your business will also play a big role in determining your premiums. Some businesses, for example a firm that specialises in earthmoving services, will most likely need cover for a range of heavy machinery that is much more expensive than the cover needed for a small office supplies business. Some industries obviously attract larger sums insured, while it also stands to reason that larger businesses will have more to insure.

Claims History

Insurers will take your business's claims history into account when assessing your application. If storm damage or burglary have caused problems for you in the past, this could affect the cost of your future insurance premiums. In addition, your business contents insurance could cost more depending on where your business is located. As an example of this, storm damage can pose much more of a regular threat in some areas of Australia than it can in others.

Other types of insurance to be aware of

If you run a business, there are a few other important types of insurance you need to consider:

• Workers compensation insurance. If you have employees, you're required to have this to protect them in case they're in an accident or get ill.
• Public liability insurance. This is often compulsory for certain types of businesses and if you're self-employed. It also covers you for third-party death or injury.
• Business interruption. Business interruption can cover you for losses if an insured event stops your business from operating.
• Third-party personal injury insurance. If your business uses vehicles as part of your business, you need to have compulsory third party (CTP) insurance to cover you against personal injury claims.

Talk to a broker about business contents insurance

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FAQs

• Is business contents insurance a legal requirement in Australia?

  No, business contents insurance is not a legal requirement in Australia, but it is often a mandatory condition of a commercial lease agreement. While you are not forced by law to have it, most landlords will require proof of cover for the fit-out and contents before you can occupy a business premises.

• What happens if I underinsure my business contents?

  Underinsuring your contents may trigger an 'average clause' where the insurer reduces your claim payment in proportion to the amount of cover you missed. For example, if you insure for only half the true value of your equipment, the insurer may only pay out half of any claim you make, even for small losses.

• Does contents insurance cover the glass in my shopfront?

  Yes, glass cover is usually included or available as an optional add-on to protect your windows, doors and signs from accidental breakage. This is particularly important for retail businesses as many commercial leases hold the tenant responsible for the replacement of all internal and external glass.

• Are my customers' belongings covered while they are at my premises?

  Yes, most business contents policies cover items belonging to customers as long as they are in your care, custody or control. This is a vital feature for businesses such as repair shops, dry cleaners and hospitality venues where you are responsible for the safe keeping of third-party property.

• Can I claim for digital data or software loss under this policy?

  No, business contents insurance is designed to protect physical assets and does not typically cover the cost of restoring lost data or software. To protect against these risks, you should consider a standalone cyber insurance policy or an electronic data processing extension.

• Will my premium be lower if I have a back-to-base alarm system?

  Yes, insurers often provide discounted premiums for businesses that have security features such as back-to-base alarms, CCTV and deadlocks. These measures reduce the risk of theft and vandalism, making your business more attractive to insure and resulting in a lower cost of cover.

Written by

Gary Ross Hunter

Journalist

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Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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Gary Ross has written 520 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
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