Last updated July 2021
This chapter examines the type of insurances your business should have in respect of workplace health and safety.
Types of business insurance
Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary payment, known as the premium. Through the payment of an annual premium, the insured receives protection against significant potential losses and financial hardship if an event within the conditions of the policy occurs.
There are many different insurance policies a business can obtain to cover against the risk of loss and damage. Most businesses need a variety of policies that are called general insurance.
General insurance is broadly defined as any non-life insurance policy.
Australian insurance companies offer many types of general insurance products, including:
- consumer credit;
- compulsory third-party;
- cyber risk;
- employment protection liability;
- extended warranty;
- farm, crop and livestock;
- general property, home and contents;
- home warranty and lenders mortgage;
- product recall;
- professional indemnity;
- public and products liability;
- medical indemnity;
- motor vehicle; and
- workers’ compensation.
All insurers must include all the terms and conditions of the insurance product in a Product Disclosure Statement.
A PDS is an important legal document that usually forms part of your insurance contract and describes the features, benefits, cost and risks associated with the policy.