The general insurance industry’s market size in Australia hit $72.3 billion in 2022. This is because more businesses are opting for insurance coverage to protect their assets against major liabilities.
You may be surprised at the types of policies found these days. Church insurance is quite common and don’t forget Airbnb home insurance which serves the travel industry well. These industries benefit from insurance in Australia because it’s affordable and helps you recoup if there’s a monetary loss due to an unforeseen incident.
Find out about several industries and the coverages they choose and why it’s important by reading further.
Why Do Companies Need Insurance?
Whether you have a large or small company, the appropriate insurance policy can protect you from common incidents such as:
- Property damage
- Employee injury
The applications are vast. For example, homeowners AND people that run Airbnbs will need property insurance in case of:
- A natural disaster
- Damage to expensive items
- Burst geysers or pipes
- Pest damage
An insurance policy is one of the most important investments you can make. Although you have to pay for coverage each month it can help you recover from losses without taking money out of your savings.
What Happens If a Company Doesn’t Have Insurance?
Public liability insurance isn’t compulsory in Australia. However, if you don’t have an adequate insurance policy you can be liable for injuries to another person or damage to property. Furthermore, the likelihood of being sued is unpredictable and extremely costly.
On the other hand, there are industries where public liability insurance may be compulsory because of industry licensing. In some Australian states, insurance is mandatory for electricians and plumbers. If you don’t have insurance you could face fines and jail time.
For homeowners, fixing damages to your property can take a large chunk out of your savings. But if you pay an insurer every month, the company can recommend someone to do repairs and pay them for the material and labour on your behalf.
6 Industries That Need Insurance
All industries in Australia should opt for an insurance policy. But some industries heavily rely on their insurers to protect them from monetary loss. Without insurers, companies may close down and you won’t have important services that contribute to Australia’s economy.
1. Insurance Policies for Churches
For people to practice their faith they need churches with adequate shelter and utilities. However, churches require a special type of coverage that includes:
- Public liability insurance
- Personal accident insurance for volunteers
- Corporate travel insurance
- Personal accident or illness for pastors
- Workers’ compensation
If you experience a fire, flood or equipment damage, assets can be replaced or you can get paid out cash to purchase the items yourself. Churches can also experience lawsuits and accidents on the property. An insurer can provide the funds needed to protect churches from any financial losses these scenarios may result in.
It’s recommended that churches have $1 million coverage in general liability insurance to ensure all costs are paid for.
2. Property Insurance for Airbnbs
Australia is a popular tourist destination which has contributed to the popularity of Airbnbs. There are over 100,000 Airbnbs in Australia so tourists from around the world can stay in private accommodation during their visit.
Whether you’re renting one room or an entire house you are considered a landlord and need an adequate policy to protect your assets. If you offer short-term rentals you can opt for insurance coverage for:
- Malicious vandalism
- Theft by a tenant
- Accidental loss or damage
- Fire damage
- Storm damage
- Damages from animals
Insurance policies for Airbnbs are similar to other types of coverage where you can choose what you want to insure. You can tailor your policy so your most important assets are covered.
3. Policies for the Entertainment Industry
According to Statista, the arts and entertainment industry in Australia is forecast to be worth $2.1 billion by 2025. Producers and filmmakers opt for insurance policies to cover their sets because they’re incredibly expensive to develop.
Furthermore, accidents can happen while building movie and TV sets so managers will need liability insurance to protect themselves against third-party claims.
Other items on set can be covered by insurers too:
- Expensive props
- The property that’s being occupied
4. Why Spas Need Insurance
Accidents at spas can happen. Someone could slip inside a sauna or have an allergic reaction to lotions and oils put on the skin. Spa owners could choose insurance to cover legal costs, medical bills or property repairs.
Whenever you bring in new employees, add advanced equipment or sell new products you increase your risk of litigation. As your business grows you need to adjust your policy so you’re covered for all risks or damage. Company owners can opt for special day spa insurance that offers:
- Workers’ compensation
- General liability
- Property and casualty coverage
- Business interruption
Your insurer should offer you a tailored policy that’s specific to your requirements.
Whether you have a small start-up company or a large corporation, having an insurance policy will cover any costs incurred by lawsuits, damage or injury. Landlords can also benefit from an insurance policy to cover expensive assets. Simply choose the right company that offers the coverage you need to protect you efficiently.