Insurance guide: Asset and revenue insurance

Here are some tips on what you need to know to protect your assets and income.

Motor vehicle insurance

It is compulsory to insure all motor vehicles and fleets that your business uses on public roads. Many different types of policies are available, so it’s good to make sure you understand each before making a decision.

There are four basic options:

  • Compulsory third party (injury)

    Compulsory third party covers you for claims made against you for medical and compensation costs arising from the use of your car. You must obtain this insurance to register your car.

  • Third party property damage

    Third party property insurance covers your liability for damage to another person or to the property of others and your legal costs. It doesn't include repairs to your own car if you caused an accident.

  • Third party, fire and theft insurance

    Third party fire and theft insurance covers you against the events covered above, as well as fire and theft. It also insures against damage caused if your car was stolen.

  • Comprehensive insurance

    Comprehensive insurance covers you for all of the above plus damage caused to your own car by you in an accident. If you're buying a car on an instalment basis, financiers will usually insist on this cover.

Other insurance

The following types of insurance aren't compulsory, though it is recommended that you consider all options:

  • Building and contents

    Covers the building, contents and stock of your business against fire and other perils such as earthquake, lightning, storms, floods, impact, malicious damage and explosion.
  • Burglary

    Insures your business assets against burglary, and can be important for a retailer or business that has a property that is not always attended.
  • Business interruption or loss of profits

    Covers you if your business is interrupted through damage to property by fire or other insured perils. It can help ensure your ongoing expenses are met and profit is maintained through a provision of cash flow.
  • Deterioration of stock

    Covers your business for the deterioration of chilled, refrigerated or frozen stock following the breakdown of the refrigerator or freezer they were kept in.
  • Electronic equipment

    Covers your electronic equipment for theft, destruction or damage.
  • Employee dishonesty

    Covers losses resulting from employee theft or fraud.
  • Farm insurance

    Insurance for farms covering things such as crops, livestock, buildings, and machinery.
  • Goods in transit

    Covers loss of, or damage to, the goods you buy, sell or use in your business when they are in transit by ship, air, post, rail or road.
  • Machinery breakdown

    Protects your business when mechanical and electrical plant and machinery at the worksite break down.
  • Tax Audit

    Covers you for the cost of fees in the event of a tax audit or investigation into your business.
  • Property in transit

    Covers theft or damage of items you use for business purposes that travel with you, such as tools and equipment.

© Commonwealth of Australia 2016. 

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