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Whilst public liability does not cover damage to your own property, there is another optional cover that does.
When taking out public liability as part of a business insurance policy, one of the most commonly included options is general property cover.
General property cover can provide protection for the ‘tools of trade’ that you use as part of your business. In this guide we’ll take a closer look at this cover.
What is General Property Insurance?
General property cover, also known amongst tradies as tool insurance, is a form of cover which can protect your portable ‘tools of trade’ from a range of different risks.
The items which can be covered vary depending on the type of business that you run.
For a tradesman, items covered can include basic tools through to valuable electronic equipment.
For a consultant, his or her ‘tools of trade’ could include items such as a laptop, mobile phone or tablet.
The items covered under general property are generally considered to be portable items. If you also have equipment which stays within your office or workshop these should be covered under your business contents insurance.
What Events Are Covered?
The specific events covered under a general property policy will differ from one insurer to the next.
The following events are covered under most of the common policies issued in Australia:
- Damage caused by fire or storm
- Damage caused by a vehicle collision or rollover
- Theft following forced entry
Some insurers will also cover the following events, however these policies will generally be more expensive
- Accidental damage
- Theft without forced entry (‘open air’ coverage)
Some insurers also include flood cover. You should check this with the insurer or your insurance broker to see exactly how flood is treated by your policy.
Whilst first three points listed above are common for the majority of general property policies, it is still important to check your specific policy.
There is at least one policy out there we know of that doesn’t cover theft of any kind, and this is most likely not a policy that you’ll want to have.
How Much Does it Cost?
The cost of general property insurance will vary depending on four main factors as follows:
- The total value of the property
- The type of business you operate
- The location of the property (geographical)
- The type of cover you require
The value of the property to be insured will generally have the greatest impact on the cost of the insurance. Quite simply the more you need to insure for, the more your insurance will cost.
The type of business you operate will also have an impact, and this is generally based on claims history. If your business type has a lower rate of claims, you will likely pay less for your insurance.
Just as your home and car insurance is affected by the area in which you live, your general property cover will also be affected. This is also based simply on claims history for your suburb or postcode.
The type of policy you will require can have a major impact on the cost. A basic policy that only covers fire and storm damage will cost less than a policy which also covers ‘open air’ theft and flood.
Getting a Quote
To get a quote on general property insurance all you need to do is tick the box on our public liability quote request form and answer a couple of extra questions.
General property cover is a fantastic option for business owners looking to take out public liability insurance as well, and the low premiums mean that the cover provides excellent value for money.
For more information please call us or complete the online quote request.