What is business contents insurance?
Business contents insurance covers specified physical assets against the events insured by your policy. Depending on the definitions and selected sections, those assets may include furniture, fittings, equipment and stock. The schedule, wording and endorsements establish what is covered at each location.
Contents protection can form part of a small business insurance package or a broader commercial property arrangement. The Australian Government’s guide to insurance types separates building and contents protection from other covers such as machinery breakdown and goods in transit. Those distinctions are useful when checking for gaps.
Walk through your premises room by room before estimating a value. The items in a storeroom, meeting room or staff area are easy to overlook when you focus only on your most expensive machine. Our contents cover glossary entry explains the basic terms.
Which business assets should you discuss?
Prepare an inventory that reflects how the workplace actually operates. An office may rely on computers, desks and communications equipment. A shop may hold shelving, display furniture, a point-of-sale system and stock. A treatment room or workshop may depend on specialist equipment with a long replacement lead time.
- List equipment by description, location, ownership and replacement estimate.
- Separate stock from equipment, and note seasonal stock peaks.
- Identify leased, hired or financed items and the relevant agreements.
- Record tenant improvements and discuss who must insure them.
- Flag customers’ goods, employees’ possessions and items held for repair rather than assuming they are included.
Large or unusual assets may need separate identification or a different arrangement. Underwriter QBE’s commercial property information describes assets such as stock, machinery and contents; it also illustrates why businesses with substantial values may need a broader property review.
Fire, storm, theft and accidental damage
Ask which events are insured and which policy sections must be selected. Fire damage, storm damage, burglary and accidental damage should not be treated as interchangeable promises. Theft may have its own section, limit and conditions; flood and other water damage require careful reading of the relevant definitions.
For example, QBE’s business package information lists property damage, theft, machinery breakdown and property in transit as different cover options. A package label alone does not tell you which options your schedule includes.
Describe how the premises are secured, when they are occupied and where sensitive stock is stored. Ask what happens if the alarm arrangement changes, the building becomes temporarily unoccupied or goods are moved to a temporary site. Record the insurer’s answer with the policy documents so the people running the premises can follow the relevant conditions.
Contents, buildings and equipment away from the premises
Building or property insurance addresses different assets from the contents used inside them. If you rent, check the lease and the policy definitions together. The landlord’s building insurance should not be assumed to cover your equipment, stock or every improvement you paid for.
Likewise, a contents policy for one address should not be assumed to follow a laptop, tool kit or exhibition display everywhere it goes. Explain whether equipment travels in vehicles, stays overnight at employees’ homes or is used at client sites. Ask about portable property, transit cover and any specified item or territorial limits.
Physical equipment and digital information also create different exposures. Replacing a stolen computer does not resolve every data breach or restore every lost file. Review cyber insurance alongside your physical asset protection where those risks are relevant.
Choosing a sum insured that reflects your assets
The figure in your accounts may not represent the amount needed to replace damaged contents. Check the policy’s valuation basis first. If replacement is the relevant basis, obtain current estimates and discuss delivery, installation and any other costs the wording requires you to include.
See our explanations of sum insured and replacement cost. QBE’s underinsurance guidance highlights changing asset values and rising replacement costs. Review your figures when purchasing equipment or increasing stock, rather than simply repeating last year’s total.
Ask whether an average clause applies and how it could affect a partial loss if the declared value is too low. Do not assume the sum insured is the only relevant calculation. For specialist equipment, a supplier’s written replacement estimate can provide a stronger starting point than an old invoice.
Exclusions and related protection to review
Ask how the proposed policy treats wear, gradual deterioration, mechanical or electrical breakdown, unexplained disappearance and damage arising from poor maintenance. These issues can have different treatment from sudden insured damage. A contents policy should not be used as a maintenance budget.
Think through the recovery sequence. Replacing damaged equipment is one expense; paying rent and wages while the premises cannot operate is another. Business interruption insurance needs its own review of insured triggers, financial values and the recovery period. Refrigerated stock, glass and money can also raise separate cover questions.
A useful discussion starts with your most difficult interruption: what would stop work, which supplier could replace the damaged item, and how long would installation take? This exercise does not predict a claim outcome. It helps you identify the questions that the selected insurance arrangement needs to answer.
Preparing for a business contents insurance quote
Give BAU Risk the business activities, premises address, building details, security arrangements, claims history and the assets and values you want considered. Explain processes involving heat, flammable materials or other relevant hazards. The same contents value can present different risks in an office, a commercial kitchen and a workshop.
Keep a current policy schedule, an asset inventory and any lease requirements available. Mark items that are frequently away from the premises. Identify where stock values fluctuate and whether goods are held at a warehouse operated by someone else.
Compare quoted terms as well as price: the insured events, limits, valuation basis, location restrictions and excess affect what you are buying. Ask for unclear terms to be explained before accepting cover. There is no single contents premium that suits every business.
If your business contents are damaged or stolen
Put people’s safety first, contact emergency services where needed and notify your broker or insurer promptly. Explain what happened, which premises are affected and whether the loss is preventing trade. Follow instructions about securing the site, repairs and retaining damaged property where safe.
Gather photographs, asset records, receipts, serial numbers and relevant reports. Keep evidence of temporary measures and their cost. Australian Government guidance on managing insurance explains the value of supporting records and checking repair arrangements with your insurer.
Read our claims guidance if you need help preparing the information. To review protection before a loss, contact BAU Risk with your asset list and existing schedule. This page gives general information; the policy documents and your circumstances determine the available cover.
Frequently asked questions
Do I need contents insurance if I rent the premises?
You may still need protection for the equipment, furnishings and stock used by your business. Check your lease, ownership of improvements and the policy definitions. A landlord’s building policy should not be assumed to insure your assets.
Is stock included in business contents insurance?
It depends on the policy definitions and schedule. Stock may need a separate declared value or selection. Explain what you hold, where it is stored and your busiest seasonal periods so the values can be assessed.
Are laptops and tools covered at a client site?
Do not assume cover at the insured premises extends to every location. Ask about portable property, transit and temporary removal provisions, including overnight storage conditions and item limits.
Will contents insurance pay the income lost while equipment is replaced?
Replacing physical assets and covering lost income are different issues. Review business interruption cover, its required insured event, financial values and recovery period. A contents claim does not automatically establish an income-loss claim.
A few minutes. A different perspective.
Put your thinking
into practice.
Three situations for business contents businesses. Choose a practical next step, then explore why the details matter.
A learning activity with hypothetical situations. It is not a risk assessment, personal advice or a prediction of insurance cover.
What would you do next?
Work through the facts, the records and the questions you would take to your broker. There is no time limit.
Related insurance and useful terms
Property Insurance · Public Liability Insurance · Business Interruption Insurance · Professional Indemnity Insurance · Workers Compensation Insurance · Management Liability Insurance · Cyber Insurance
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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