What is Building & Contents Cover?

Contents Insurance*

This insurance product cover for loss of or damage to items such as business equipment, stock, plant and machinery, records and furniture belonging to you at the insured location. Your business contents might be costly, or invaluable to the day-to-day operation of your business. Ask yourself if you could afford to replace your business contents if they were to become damaged or lost, and how well your business would be able to function without them.
If you cannot easily afford to replace your business contents, and your operations without them would be severely impacted, consider taking out Building and Content insurance. This is a common insurance product that can be bought alone or as part of a Business Insurance package.

Did you know?

That property damage caused by a flood is typically excluded by business insurance policies. However, property damage caused by sprinklers or due to bursting, leaking or overflowing from an apparatus such as fixed tanks or pipes is generally covered. Be sure to check the specific inclusions and exclusions of your Business Insurance package or Contents Insurance.

Some of the other insured events that are typically included in contents policies include:

• Fire
• Lightning and explosions
• Storm, wind and water
• Earthquake
• Impact damage
• Malicious damage and vandalism
• Accidental damage

What’s typically considered business contents?

• Trading stock
• Your fixtures and fittings (if you are a tenant)
• Business furniture
• Machinery, plant and equipment
• Documents of title, business books and other records
• Goods held by you on consignment

However, contents insurance generally does NOT cover for events such as:

• Wear, tear or gradual deterioration
• Intentional damage caused by you
• Damage caused by insects or animals
• Rust, mould or mildew
• Machinery breakdown
• Computer virus or hacking
• Pollution
• Any person deliberately switching off power supply
• Faulty design or workmanship

What’s typically NOT business contents?

• Buildings
• Money, security documents or stamps
• Motor vehicles
• Explosives
• Animals or crops

Things to consider

1. From tradesmen protecting their tools, to accountants and consultants covering office furniture and computers, coverage for contents and equipment is a commonly purchased product within a Business insurance package. This is because it protects the interests of a wide range of professionals.
2. Consider the value of, or cost to replace your contents and equipment when selecting an appropriate level of contents cover. Prepare a thorough inventory of your contents and avoid underestimating their value. If you underestimate the value of your business contents, you may find yourself having to pay out of pocket even after receiving an insurance payout for an insured event. In situations of only a partial loss, you may be deemed to be assuming a percentage of the risk and not receive a full payout.
3. Be aware that overestimating your contents and equipment may result in an unnecessary increase in your policy premiums. You could find yourself paying more every month or year than you need to, which could impact your balance sheet. Your funds might be better used elsewhere in your business.