Income Insurance Australia :: Articles

Business Insurance Policy and the Importance of the Business Description

Why is a detailed business description important for my insurance policy?

Business Insurance Policy and the Importance of the Business Description

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Does your insurance company really know what it is your business does? This article will help you to understand the importance of the business description and how it can help to avoid any nasty surprises should you need to make a claim.

One of the most important parts of your business insurance policy is also one of the most basic; the business description. The amount of detail included within the business description varies from Insurer to Insurer.

For example Insurer A may just state that their policyholder's business is "printers" whilst B might go into a lot more detail and show a business description of "lithographic and digital printers, printing of large format graphics, printing of greeting cards, property owners and business ancillary to the aforementioned".

So if your business insurance policy is placed with Insurer A how do you know that they fully understand your business?

If you are using an Insurance Broker, which I really hope you are, then you should ask your Broker to show you a copy of their market presentation.

This document will include full details of exactly what it is you do, what you make, what your product does, who you sell it to, etc., etc., as well as other important informations such as your sums insured, limits of indemnity and claims experience.

If your Broker has arranged your policy through an Insurer's online quote system, or if you have arranged it direct yourself, then it is more than likely that you will have a simple, straightforward business description such as "hotel", "builder", "HR consultant" or "carpet shop".

This is fine as long as you are happy that your business does not do anything out of the ordinary and that you can comply and agree with all of the policy terms and condition, and all of the assumptions detailed on the Statement of Fact or Proposal Form.

A classic example of where a straightforward business description can lead to problems is the world of Web Design. Most of the online policies available for the Web Designer or Developer have a business description of just "Web Design".

What the business description drop-down on the online quote engine does not tell you is that the majority of these policies will not cover you if you provide hosting service, or if you build e-commerce sites, or if you provide chat room or forum on your website.

These details are contained within the Statement of Fact.

The moral of the story is simple, if you want to avoid any possible nasty surprises when you need to rely on your Business Insurance Policy and make a claim then please do make sure your Insurers do know and understand exactly what it is your business does.

I hope you have found this article useful and that you will double-check to ensure your business insurance company is fully aware of what it is you do.

Published: Monday, 23rd Aug 2021
Author: 330

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.


Income Protection Articles

Income Protection Insurance for Employees, Contractors and Self-Employed Workers
Income Protection Insurance for Employees, Contractors and Self-Employed Workers
Income protection insurance can work differently depending on whether you are a PAYG employee, contractor, sole trader, freelancer, gig worker or small business owner. Your employment structure may affect income evidence, policy design, premiums, exclusions and claim documentation. - read more
Income Protection Insurance for Australian Entrepreneurs: How It Works and What to Consider
Income Protection Insurance for Australian Entrepreneurs: How It Works and What to Consider
Australian entrepreneurs, sole traders and self-employed business owners often rely directly on their own ability to work and earn. Income protection insurance is designed to provide a replacement income if illness or injury temporarily prevents you from working, helping you understand how this cover may fit into broader financial and business planning. - read more
How Income Protection Insurance Can Safeguard Your Financial Future
How Income Protection Insurance Can Safeguard Your Financial Future
Income protection insurance is a type of insurance policy designed to replace a portion of your income if you are unable to work due to illness or injury. This financial safety net can help cover essential living expenses, such as mortgage repayments, utility bills, and daily costs, ensuring you maintain your standard of living during tough times. - read more
Pre-Existing Conditions and Income Protection Insurance in Australia
Pre-Existing Conditions and Income Protection Insurance in Australia
Income protection insurance can provide replacement income if illness or injury prevents you from working. If you have a pre-existing medical condition, the application, policy terms and claims process may need closer attention because insurers assess health history when deciding whether to offer cover and on what terms. - read more
Income Protection Through Superannuation and Salary Continuance Insurance Explained
Income Protection Through Superannuation and Salary Continuance Insurance Explained
Income protection through superannuation, salary continuance insurance and standalone income protection can all help replace income if illness or injury stops you working, but they differ in ownership, funding, tax treatment, flexibility and claims access. - read more

Insurance News

Diagnosis timing is not the only test for income cover
Diagnosis timing is not the only test for income cover
12 Nov 2026: Paige Estritori
A recent income protection dispute has put fresh attention on a difficult but important issue for Australian workers: a medical condition may be treated as pre-existing even where a formal diagnosis comes later. The case, reported on 9 November 2026, involved a prostate cancer claim that was declined after the Australian Financial Complaints Authority accepted that earlier medical warning signs and specialist investigations were enough to trigger a pre-existing condition exclusion. - read more
Why Claims Communication Is Back in the Spotlight
Why Claims Communication Is Back in the Spotlight
05 Nov 2026: Paige Estritori
A new Life Code Compliance Committee inquiry has put fresh attention on the way life insurers manage longer-running income protection insurance and total and permanent disability claims, finding that clearer communication and earlier information requests could reduce avoidable stress for people waiting on claim decisions. - read more
Why Mental Health Cover Is Back in the Income Protection Spotlight
Why Mental Health Cover Is Back in the Income Protection Spotlight
29 Oct 2026: Paige Estritori
Australia’s life insurance industry has moved mental health cover back to the centre of the affordability debate, after the Council of Australian Life Insurers released its response on 30 September 2026 to the independent review of the Life Insurance Code of Practice. For workers who rely on income protection insurance, the issue is practical: mental health conditions can affect earning capacity just as seriously as physical illness, but changes designed to keep premiums manageable may also alter what is covered. - read more
Why Super Service Standards Matter for Your Income Protection
Why Super Service Standards Matter for Your Income Protection
17 Sep 2026: Paige Estritori
ASIC’s continuing focus on superannuation member services has put another practical issue in front of Australian workers: insurance inside super is not just about whether cover exists, but whether members can understand and use it when they need help. Recent regulatory attention on trustee administration, communication and claims support is a timely reminder for anyone relying on salary continuance or income protection benefits through their fund. - read more
Advice Changes Could Make Income Cover Easier to Understand
Advice Changes Could Make Income Cover Easier to Understand
10 Sep 2026: Paige Estritori
Australia’s financial advice reform agenda has taken another important step, with industry attention turning to how simpler, more accessible guidance could help consumers make better decisions about insurance. For workers who rely on income insurance or salary continuance cover, the issue is more practical than political: many people hold cover they do not fully understand until illness or injury forces them to test it. - read more

Start Here !
disability protection
Apply now for your free Insurance assessment and price comparisons!

Start Here:

First Name:
Postcode:

All quotes are provided obligation-free by a participating broker from our national referral partner network. We respect your Privacy.