Australia is home to more than 100,000 manufacturing businesses. If yours is one of them, you’re probably familiar with the challenges that come with operating in this sector. There’s no shortage of things that can go wrong and without the right insurance cover in place, it’s easy to end up out of pocket or, in a worst-case scenario, out of business. If you’re exploring insurance for a manufacturing business, these are some of the more common exposures you need to safeguard against.
If a customer suffers an injury to themselves or their property because of using or consuming your products, they may decide to seek compensation. Product liability insurance can help cover those settlements and the costs associated with product recalls.
Public and product liability wording can be extended to cover amounts that the insured becomes legally liable to pay as compensation for financial loss, arising out of a negligent act, error, or omission in connection with the business.
“Say, for example, you’ve fabricated a lift for a shopping centre and that lift proves to be faulty, tenants within the centre may claim they’ve suffered financial losses as a result,” Steadfast Broker Technical Manager Michael White explains.
The nature of your business is an important factor to consider when determining the level of cover you’re likely to need.
Property insurance can help you rebuild and re-open, should your premises be knocked out of action by a natural disaster, while machinery insurance can assist you to replace any plant that’s damaged or destroyed.
Food processing businesses that keep a significant volume of ingredients or stock in cold storage may wish to add machinery breakdown cover to their policies.
If equipment or parts aren’t available or need to be imported, the rectification process can be extremely protracted.
“Specialist machinery can’t be purchased off the shelf,” White says. “It could take months or even years before it’s delivered and then it may need to be commissioned by a representative from the supplier. It’s important business owners understand just how long it can potentially take before their lines are up and running again.”
Business interruption insurance can be critical for manufacturing businesses. Designed to help your enterprise keep operating after a catastrophic event, such as a fire caused by faulty equipment, it can cover ongoing operational costs while you recover.
Business interruption insurance can also provide financial relief if supply chain disruption makes it impossible to obtain the materials needed in the manufacturing process.
“Without the right cover in place, a significant disruption to production could send your manufacturing business to the wall,” White says.
“Business interruption insurance is there to keep you ticking over financially until you’re able to recommence operations.
Regardless of the nature of your business, there’s always a risk of accidents and injuries in the workplace. Implementing stringent workplace health and safety procedures and ensuring all employees receive adequate training before setting foot on the factory floor can help you reduce it.
Your employees are entitled to seek compensation for any physical or mental injuries they incur while on the job. Should that occur, workers’ compensation cover can help you defray the cost.
If you haven’t reviewed your business insurance for a while, now is a great time to do so. A broker can help ensure you have the right cover for your specific business needs and circumstances.
Contact an AIB Insurance broker today to discuss your manufacturing cover needs.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
Property can be an excellent long-term investment, but it doesn’t come without risks.
There can be a chance your tenants may default on the rent, steal items from the property or cause damage that their bond may not cover.
The rental income you rely on to pay the mortgage could disappear if a natural disaster renders the premises uninhabitable for an extended period of time.
That’s where landlord insurance comes in.
A specialised form of cover designed to protect property owners who rent out commercial or residential spaces by mitigating some of the most common risks associated with being a landlord.
While having a landlord insurance policy is not mandatory, it’s highly recommended by real estate professionals and financial specialists who’ve seen landlords suffer significant losses and hardship from tenant-related events.
A landlord policy typically comprises a combination of building, contents and landlord insurance.
Property damages from natural disasters (such as fire, flooding and storms) are likely to be covered, as are possessions kept on the rental premises for maintenance purposes, such as tools and gardening equipment.
The landlord component of the policy typically covers loss of rental income if the property becomes uninhabitable. This could happen as the result of a covered event, rent default, damage or theft by tenants and their guests, liability in the event of an accident, and legal expenses, if necessary.
What landlord insurance doesn’t cover are the regular costs associated with being a landlord.
This could include construction defects, normal wear and tear, and ordinary expenses, such as plumber’s bills for clearing drains.
Landlord insurance has proven a worthwhile investment for Rodney Holder, whose property portfolio includes a block of units in the central Queensland town of Rockhampton as well as houses in Canberra and Brisbane.
His policy covered the cost of making good the damage caused by one less-than-careful tenant in his Canberra property, including torn curtains, a hot pot burn mark on a newly laid floor and a broken door on a new oven.
“As with any insurance, you’re paying for peace of mind,” Holder says. “It’s also tax deductible and a cost of doing business.”
Other claims can be significantly larger, warns Jo Napoli, the Principal of real estate agency The Rental Specialists.
She recently helped a client evict squatters from their investment property and says the bill for lost rent, new locks, damage to the premises and cleaning came to just under $10,000.
After being provided with a copy of the condition report, tenancy ledger, photographic evidence of the damage and invoices for repairs, the client’s insurer paid the claim within 14 days, Napoli says.
If you’re a landlord or considering becoming one, it’s a good time to consider the benefits of landlord insurance. It could also be worth reviewing your level of cover to check it remains right for your circumstances.
Contact your AIB Insurance broker today to discuss your unique insurance needs today.
Important notice
All information in this article is of a general nature only. This article does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please think about whether this type of insurance is appropriate for you. Deductibles, exclusions and limits apply. You should consider the Product Disclosure Statement or any Target Market Determination in deciding whether to buy or renew this type of insurance. Various insurers issue this type of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
If you run a healthcare business, you might know it comes with a range of challenges and risks. From physical therapy clinics to chiropractic offices, these practices face a number of potential liabilities. And these can have significant financial and reputational consequences.
In this guide, we explore some of the common insurance covers healthcare businesses should consider.
But first, let’s look at a case study that shows how insurance can work in healthcare.
Dr S Tarek Shalabi is Cosmetic Doctor Brisbane‘s owner and co-founder. The business specialises in non-surgical cosmetic medicine. As a medical practice, the firm is required to carry public liability and professional indemnity insurance. As an injectables cosmetic clinic, contents insurance is also a must, given the high-value nature of the product.
The practice has never made a claim on its policies. Dr Shalabi credits this to the resources his medical indemnity insurer has in place to help prevent a situation from arising where he would need to make a claim.
“They are extremely helpful in situations where we would like to discuss a complex situation, for example, in cases where we have specific requests from patients which deviate from our normal practice,” says Dr Shalabi.
“They have a full team of doctors and medicolegal professionals available 24/7, in addition to a multitude of online guides, resources and case studies,” he says.
“They provide a great platform to discuss cases where there may be no immediate ‘right answers’ and provide us reassurance and backing when making decisions. On multiple occasions, they have guided us through the correct course of action to provide the best outcomes for our patients and to reduce the risk of a claim,” he adds.
Given the nature of their work, healthcare businesses are exposed to a range of different risks. These include everything from malpractice claims to property damage and even theft.
So, it’s important for businesses operating in the healthcare sector to have a well-thought-out risk management strategy, including appropriate insurance policies. Let’s take a look at some of the main policies healthcare businesses may need.
Healthcare businesses are at risk of being sued by patients if they believe a healthcare professional has provided substandard care or has been negligent in their treatment, resulting in harm or injury.
Professional indemnity insurance cover helps to protect healthcare professionals from claims related to errors, omissions or negligence in providing their services. It can cover legal defence costs, settlements and judgments.
Public liability insurance provides protection for property damage and personal injury claims arising from accidents that occur on the business premises or as a result of business operations.
“This type of cover is essential for protecting against risks such as slip-and-fall accidents and equipment malfunctions,” says Steadfast’s Broker Technical Manager, Michael White.
A good business insurance pack protects the physical assets of a business, including the building, equipment, furniture and supplies, against perils such as fire, theft or vandalism. It can also provide cover for business interruption if the premises become temporarily unusable. In the case of cosmetic injectables, if they need to be kept in cold storage, the business would need to take out cover for deterioration of stock in cold storage.
If the health business has employees, workers’ compensation insurance is required by law. It provides medical benefits and wage replacement to employees who suffer work-related injuries or illnesses.
In today’s digital world, like most other businesses, healthcare businesses are increasingly vulnerable to data breaches and cyberattacks. Cyber liability insurance helps cover the costs associated with data breaches, including legal expenses, notification and credit monitoring services and potential liability for compromised patient information.
A risk management strategy, including the right insurance, is essential for every healthcare business.
Talk to your AIB Insurance broker today to find out more.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your Steadfast insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Even the most careful tradies can have an accident or lose their tools. Whatever size the project, whether you’re a handyman, plumber, builder, carpenter or electrician, being properly insured can bring real peace of mind to you, your clients and your employees. When it comes to insurance for tradies, making sure you have the right cover can ensure you minimise the risks and associated costs.
For some tradies, public liability insurance is mandatory, and most building contracts above a certain value require this cover.
Compulsory or not, it always makes absolute sense. If you accidentally cause injury to someone or damage property, you could be liable for damages and significant financial loss. Costs could include medical and rehabilitation expenses, repairs and/or legal fees.
It can also be harder to find work if you aren’t insured. Some customers want to know they’ll be compensated if something goes wrong.
You can’t work without your tools. If they’re stolen from a worksite, a storage shed or the back of your truck, the right tool insurance can help you replace them allowing you to return and get on with the job.
Your ute, truck or wagon is another business essential. You might be tempted to save a few dollars by not mentioning to your insurer that you use the vehicle for work, but you run the risk of having a claim rejected if it relates to your job.
Some policies include accessories and modifications such as your signage, racks and tow bar when they’re assessing the vehicle’s replacement value.
They may also have more flexibility in terms of the number of drivers covered – this is important if your team shares the driving.
Worksites can be hazardous, exposing tradies to dangers such as incomplete electrics, working at height, noise and manual handling. And, of course, anyone can become too ill to work. When you work for yourself and don’t have sick leave, you have the extra worry of no income.
Income protection insurance can help bring the security of an income if injury or illness stops you from working for an extended period. Some trades insurance policies include an income protection option, or you can purchase standalone cover.
The ideal scenario for any tradie is to avoid accidents altogether. The Australian Bureau of Statistics’ report for the 2021/22 financial year highlights some of the most important ways to stay safe.
1. Handle with care
Lifting, pushing, pulling or bending accounted for almost a quarter (24%) of the accidents reported. Safe lifting techniques and using mechanical aids wherever possible can help to reduce the strain.
2. Keep tidy
Slipping and tripping accounted for 17% of injuries. Keeping your workplace free from trailing wires, cables, hoses and spills could help make them safer.
3. Keep a look out
A lot is going on at a worksite and it’s important to stay aware of your surroundings. At 16% bumping into or being hit or cut by an object or vehicle was the third most common type of accident.
When your livelihood is at stake you may not be able to afford to make mistakes. Your AIB insurance broker can help you explore our Trades insurance packages and tailor the protection you need.
Important note
This article does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please think about whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider the Product Disclosure Statement or any Target Market Determination in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
Steadfast Group Ltd ACN 073 659 677
Running a business solo is exciting but it also means you carry the risk personally. So, what insurance does a sole trader need to stay protected when something goes wrong? The right cover can stop a simple accident, a client complaint or an unexpected event from turning into a costly claim that threatens your income, savings and reputation. In this guide, we explain the most important types of sole trader business insurance, who they suit, and how to choose cover that matches the real-world risks of your work.
A sole trader is an individual who runs a business in their own name (or under a registered business name) and is personally responsible for the business. There is no separate legal entity like a company, which means you keep full control and receive the profits, but you may also be personally liable for business debts and many legal claims. That is why choosing the right insurance for a sole trader is such an important part of running your business.
In fact, sole traders are the most common of all businesses, with research by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) showing 63 per cent of all Aussie businesses are sole traders.
Sole traders are people who carry on business under their own name and not through a company or trust. If you decide this is the right structure for you, it’s important to ensure you also have the right insurance cover for your business.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
It depends on what you do, where you operate and whether you hire staff.
If you have employees, workers’ compensation is generally required and is regulated at state and territory level. Each state and territory has a regulatory authority that looks after this area. Check your state or territory’s authority’s website to find out more about this insurance.
Some contracting arrangements can also trigger obligations if a contractor is treated as a “deemed worker” under the relevant state scheme.
Other “must haves” may come from contracts, not laws
Even if a policy is not legally mandated, it can be effectively compulsory because:
In many cases, yes, public liability for sole traders is strongly recommended, even if it is not always legally compulsory. If you interact with the public, work on client sites, run workshops, do physical work or have customers visiting you, public liability is often the first policy to sort out.
The reason is simple: as a sole trader, you can be personally responsible if your business activities cause injury to a third party or damage to someone else’s property. A single incident can quickly become an expensive claim, particularly once legal costs are involved.
Even when it is not legally compulsory, public liability is often effectively required because clients, venues, principal contractors, body corporates and councils may ask for proof of insurance before they will engage you.
Public liability is especially important if you:
Public liability insurance is designed to respond to claims where your business is alleged to have caused:
It generally does not cover:
If you give advice, design, certify, consult or provide professional services where a client could claim financial loss, professional indemnity is the big one.
This is relevant for: consultants, bookkeepers, marketing providers, designers, IT contractors, engineers, trainers, allied health professionals and plenty more.
What it generally covers:
Quick gut-check: If your work ends up in a document, strategy, plan, recommendation, calculation, report or design, professional indemnity insurance for a sole trader is worth serious consideration.
If your business sells, supplies, imports or makes products, product liability helps protect you if a product causes injury or property damage.
Examples
Often, product liability is combined with public liability in one policy, depending on the insurer and industry.
Here’s the uncomfortable truth: if you cannot work, income can stop fast.
Many sole traders choose personal accident or income protection style cover to help replace income if injury or illness takes them out of action.
When this matters most:
If your tools, laptop, camera kit, or specialised gear is stolen or damaged, it can stop your work overnight.
This cover can be structured in different ways depending on your setup (portable equipment, contents, specified items, tools of trade). For tradies and mobile operators, it is often essential.
If you invoice clients, store customer details, use cloud systems, take online payments or rely on email to operate, cyber risk is very real.
Cyber cover can help with costs tied to events like:
Even sole traders can be targets because smaller businesses often have less security in place.
Business interruption cover is designed to help when an insured event disrupts your ability to trade (for example, fire or storm damage at premises, depending on policy structure).
This can be more relevant if you have:
If your car, ute, van or truck is used for business, you may need a commercial motor policy rather than standard personal cover, depending on usage and insurer rules.
Ask yourself:
A good approach is to list your top 5 “oh no” moments, then insure to reduce the financial impact:
The “right” limit depends on:
Many sole trader business insurance solutions are built as a simple package, then tailored with add-ons. A typical structure might include:
A broker can help avoid gaps, overlaps and “I thought that was covered” moments by aligning policies to what you actually do day-to-day.
Steadfast Group broker technical manager Michael White says the spectrum of insurance cover required will depend on the nature of the business the sole trader is conducting.
“If they own a building, they should insure the building. If they don’t own the building and they’re tenants, they need to ensure their contents. If they own a building, they need public liability insurance. Tradespeople going out to work on building sites need public liability insurance. If they own a motor vehicle, they need motor vehicle insurance.”
Most sole traders should consider public liability, and many also need professional indemnity, tools/equipment cover, and income protection or personal accident cover. What you need depends on your industry, contracts, and how you deliver your work.
Public liability insurance is not legally compulsory for all sole traders in Australia. However, it is strongly recommended if you interact with the public or work in public spaces. In some cases it is contractually required.
Not always by law, but it is often required by client contracts, venues, councils, principal contractors, or platforms before you can start work.
It generally covers claims that your business caused third party injury or third party property damage, plus associated legal defence costs (subject to policy terms).
If you provide advice, design, consulting, or professional services where a client could allege financial loss, professional indemnity insurance is strongly recommended and is often contractually required.
Sole traders typically cannot insure themselves under standard workers’ compensation (it is designed for employees), but if you hire employees you will generally need workers’ compensation insurance. Requirements vary by state and circumstances
It’s a good idea to talk to your AIB insurance broker to that no matter how you structure your business, you have the right cover to protect you from the common risks you face.
