General insurance vs business insurance: the terms are related, but they do not mean exactly the same thing. General Insurance vs Business Insurance: Which Is Broader?; business insurance describes covers selected to address a business’s risks. Understanding the distinction helps business owners ask more useful questions at quote and renewal time.
General Insurance vs Business Insurance: Which Is Broader?
General insurance refers to many non-life insurance products that can protect property, assets, liabilities and business operations. It can include business package cover, public liability, motor, cyber, management liability, professional indemnity, marine transit, plant and machinery and specialist covers.
Business insurance is usually one part of the program
A business insurance policy commonly bundles property and operational risks such as contents, stock, theft, business interruption and public liability. It may be a central policy, but it may not address every risk a business has.
- A consultant may also require professional indemnity.
- A company director may need management liability protection.
- A business using vehicles may need commercial motor or fleet insurance.
- A contractor may need contract works, tools, plant and liability cover.
- A business handling sensitive information may consider cyber insurance.
Do not assume a package covers every exposure
The practical question is: what could interrupt your ability to trade or create a significant financial liability? The answer will depend on your industry, contracts, staff, premises, assets, customers and supply chain. A business package may be appropriate, but it should be assessed alongside the rest of the business’s exposures.
Example: retail businesses
For a retailer, stock levels, electronic equipment, public access, seasonal trading and supplier arrangements can all influence the insurance discussion. The retail insurance page provides an example of how industry risks can sit alongside more general business cover.
How ABS can help
ABS Insurance Brokers can help you understand the options available within general insurance, then consider how individual policies may work together. The aim is not to add unnecessary cover; it is to identify material gaps and arrange cover suited to the business.
For businesses in the Sydney area, speak with an ABS insurance broker in Sydney about a practical review before your next renewal.
This article provides general information only and does not take account of your objectives, financial situation or needs. Insurance availability, terms, conditions, exclusions and premiums depend on the insurer and your circumstances. Consider the relevant policy wording and seek personal advice before making a decision.
