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Is Commercial Insurance the same as Business Insurance?

  • Adroit Insurance and Risk
  • May 23, 2022

Commonly, the terms Business Insurance and Commercial Insurance are used interchangeably, meaning there’s no difference between the two terms, they are the same. Business and Commercial Insurance refers to the category of cover for companies, no matter what size or industry.  

A business owner should consider many separate policies and insurance options,  including business interruption insurance and commercial property insurance, depending on the company they run.

Some insurances such as liability coverage and workers compensation for a business with employees are compulsory either by law or as work site, business or industry requirements.  These covers can be incorporated in umbrella policies.


Who needs Commercial/Business Insurance?

Some commercial operators think insurance is only needed  for small businesses or a sole trader. On the other hand, some believe only large corporations need an insurance policy or commercial insurance coverage. 

Such misunderstandings can mean commercial business owners of any size could be missing out on the same crucial insurance coverage and end up suffering financial losses from paying hefty legal costs and compensation.   

Large or Small, Your Business Needs Insurance

Whether you run a small business or a significant commercial concern, talk to us at Adroit Insurance & Risk. We can ensure you have the best and most appropriate insurance policies and typical policy covers tailored to your business. 

We can help you manage the insurance costs and find a custom business/commercial, with the type of business insurance, personal injury, public liability and other vital  insurances in a plan that suits your needs and your budget.  An insurance broker can sort these policies out for you while you attend to your commercial business.

Compulsory Insurance Covers

The following type of insurance may be compulsory for your business:

  • If you hire employees, you must legally have workers’ compensation insurance.
  • You must have CTP Green slip insurance for any business vehicles. 
  • Some companies may be required to have public liability insurance cover for third party death or injury. 

Business or Commercial Insurance Coverage

The following insurance types are the same for almost any company whether they are operating in the commercial, hospitality, beauty or any other industry in Australia.  

Of course, there are minor differences; for instance, a hairdressing salon would not need plant and equipment insurance for a front end loader. But they would insure their dryers and other equipment, and their staff. 

However, our insurance brokers can find special packages appropriate for different industries.  Commercial insurance policies may include the following:

Public liability insurance 

Public liability coverage can offer a safety net for your commercial business if you need to pay legal fees or compensation should someone make a claim. 

This coverage is for liability claims by injured customers, suppliers, or members of the public. It covers their property damaged due to your business activities. Slip, trip and fall accidents are the most common. 

Professional indemnity insurance 

Suppose your professional service or advice is accidentally misleading or incorrect and results in a client’s loss or a negative outcome. 

In that case, this kind of policy may protect you and your commercial business. This insurance may cover your legal expenses and any compensation costs.

Management liability insurance 

If your managers act wrongfully and you find the company facing legal action and high legal fees, costs and charges, your business may be covered by this insurance. 

Cyber insurance 

If your commercial business relies on information technology (IT) systems, you should consider cyber liability insurance. This insurance may cover you for ransomware attacks, hacks and data breaches. 

Directors and managers insurance 

Company directors and corporate officers may want insurance for their own liabilities since there is added scrutiny on these roles. Their legal penalties and defence costs may be covered.

Accident and liability insurance

If you are held liable for damage or injuries to someone or their property, this insurance may offer protection.  In some industries, you must have this insurance before operating your commercial business. 

Product liability insurance

Suppose you repair, service or sell products, supply, deliver or sell goods.  If any of these activities or goods cause death or injury, damage property, or result in nervous shock, distress or a recognised mental illness, you may be liable. You need this insurance to help cover you. 

At Adroit, our risk advisers spend as much time as needed in your workplace to watch what happens in your daily commercial operations.

We can then see where you may be vulnerable to risk, which helps us find the right policies for your business. We work with you to assess the likely cost of damage or losses due to expected or unexpected events. 

This article is for informational purposes only, so for more detailed professional advice on risks, what you might pay, theft cover, general liability, an umbrella policy or anything to do with insurance,  get in touch with us at Adroit Insurance & Risk today. 

Phone 03 5221 6644 or email mail@adroit.com.au for a business insurance quote and talk about your commercial insurance needs, to add additional coverage and other options. 

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