How to Know You're Picking the Right Insurance (Without the Headache)

In the following article, we are breaking it all down so you can choose the right cover with confidence (and without the stress!). 

1. What Do You Actually Need?

Before you start googling “what insurance do I need for my business?” and falling into a deep hole of confusing and contradicting advice, let’s get clear on what you are looking for.  

Some insurance types are mandatory: your industry, employer, or a governing body might require them. But for everything else, it’s all about protecting what matters to you or your business. 

Ask yourself: 

• What’s keeps my business running? (Equipment, stock, premises, income?)
• What keeps me up at night? (the idea of theft, lawsuits, natural disasters, or a rogue possum chewing through my wiring?)
• Is it just me, or do I need coverage for my employees too?

Once you’ve got these answers, you’re already ahead of most people. 

2. What to Check Before You Buy

Alright, now you’ve figured out what you need covered. Now let's talk about the fine print. 

What's Covered (and what's...not)

Insurance isn’t one-size-fits-all, so don’t assume something is included in your policy. For example, one policy might cover water damage but not floods.  

Excess (a.k.a Your out-of-pocket cost in a claim)

This is what you pay upfront when making a claim, before your insurer chips in. A higher excess usually means lower premiums, so it is important to ensure you can afford the excess, in case you need to claim. 

3. The Jargon Decoder

Ever read an insurance document and felt like you needed a translator? Let’s fix that: 

• Premium – The cost of your cover (this may be paid by you monthly or yearly).
• Excess – What you pay upfront to the insurer when making a claim.
• PDS (Product Disclosure Statement) – The “what’s actually covered” document. It’s worth a read, seriously!
• Indemnity – Insurance gets you back to where you were before a loss. No, you can’t profit from a claim.
• Agreed vs. Market Value - Important for vehicles or assets. Agreed value = fixed payout; market value = what it’s worth at the time of a claim.
• Waiting Period – The timeframe it takes before your cover kicks in.

4. Read the Fine Print (Yes, really!)

We get it, reading insurance documents sounds just as exciting as watching paint dry. But it is important to take 5 minutes to check:  

• Exactly what’s covered
• Any sneaky limits, restrictions, or conditions
• How to make a claim

You now officially know more about insurance than the average person. The key? Keep it simple, know what to look for, and choose a policy that actually makes sense for you. 

And hey, if you’re looking for insurance that won’t leave you guessing, insurance.com.au can help. We offer general information to guide you, and we always recommend reviewing the PDS and considering your own needs before purchasing.  

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