A Brief Description of Some Available Insurance Covers

NB: All insurance policies are subject to policy terms, conditions and exclusions contained in the policy wording and schedule and agreed with the insurer. The following is a general description of the cover only. For more specific information about any of the following insurance covers please contact ARMS Risk Management. The following descriptions are not advice and may not be construed or taken as such.

Accounts Receivable/Book Debts/Credit/Trade Credit

Accounts receivable insurance (also known as credit or trade credit insurance) covers losses caused by the inability to collect payment from a customer.

Advance Interruption/Profits

To cover loss of future income where completion of a construction project building and/or plant installation is delayed by damage during the construction period.

Aviation - Hull

To cover aircraft against physical loss or damage.

Association Liability

A special combined Professional Indemnity, Public Liability and Directors & Officers policy for Associations.

Body Corporate - Owners Corporation - Strata Plan

Strata insurance, also called body corporate insurance, covers the buildings, common contents and public liability under the management of a Strata Title, Owners Corporation or Body Corporate entity. Includes other covers required under various state laws applying to Owners Corporations, Strata Plans and Bodies Corporate.

Computer Crime

To cover losses resulting from dishonesty in relation to computers.

Contract Bonds & Guarantees

The insurance of performance bonds, retention bonds and others appropriate to contracts. Also for security bonds to customs authorities.

Boiler and Pressure Vessel Explosion

Covers loss or damage due to explosion or collapse of boilers and other pressure vessels that normally require a certificate of compliance before being used.

The policy sometimes also includes third party liability cover for resultant third party property damage or bodily injury.

Burglary and/or Theft

Not all policies provide “all risks” cover. Burglary and/or Theft covers loss or damage to property resulting from burglary or attempted burglary. Cover is often limited to burglary or theft form specified premises usually following forcible entry.

Business Interruption

Business interruption insurance covers the shortfall in gross profits caused by the interruption to a business from insured events, helps pay ongoing costs and protects profit margins.

Charterer’s Legal Liability

A type of marine insurance designed to provide coverage for the liabilities including those of care, custody, and control assumed by a party chartering a vessel when the vessel's operation remains in the control of the vessel's owner.

Completed Operations

Usually an extension to Public and Products Liability / Third Party Liability to cover legal liability for third party injury or third party property damage caused by the insured’s completed construction works.

Construction Risks / Liability

Sometimes know as Contract Works or Erection All Risks, this is usually an “all risks” cover for material damage to the property being constructed under contract.

Container Liability

Cover for material damage to containers and resulting third party liability for property damage or personal injury.

Contract Penalties /
Liquidated Damages

Often believed to be not insurable as it is a commercial agreement to pay a pecuniary penalty for failing to complete a contract, there is limited covers available for contractors who suffer a loss resulting from material damage covered under a Contract Works insurance policy.

Corporate Travel

Cover for employees whilst travelling for business purposes. Cover often extends to include medical and dental covers for injury suffered whilst traveling as well as cover for loss or damage to luggage whilst travelling.

Cyber Liability

Covering claims for loss resulting from a computer system. Cyber liabilities are often excluded under traditional business covers due to electronic data exclusions.

Directors’ and Officers’ Liability /
Company Reimbursement

Directors and Officers policies cover the personal liability of company directors and officers as individuals, but also the reimbursement of the insured company in case it has paid the claim of a third-party on behalf of its managers in order to protect them.

Electronic Equipment / Breakdown / Business Interruption

Provides coverage against unforeseen and sudden physical loss or damage to electronic equipment and data media.

Employment Practices Liability

The two main covers under an Employment Practices Liability policy is to protect again claims against wrongful termination of employment, and discrimination and harassment in the workplace claims.

Entertainment & Events Insurance

A Special cover for events and entertainment which can inlude different covers for Event Public Liability, Venue and Equipment Damage, Cancellation due to Weather, Cancellation, Abandonment or Non-Appearance, Voluntary Workers Personal Accident, Optional Equipment Insurance.

Environmental Impairment Liability

Though public and products liability insurance can provide limited cover for sudden and accident environmental loss, a stand-alone Environmental Impairment Liability cover provides a more comprehensive cover for not only sudden and accidental loss, but also gradual type losses.

Extended Warranty

This cover extends a manufacturer’s expressed Australian warranty

Extortion, Kidnap & Ransom

Cover provides reimbursement of kidnap or extortion payments as well as reasonable fees and expenses incurred for use of an independent negotiator or consultant. Interest cost on loans or ransom payments and travel, accommodation expenses may also be covered./p>

Farm & Rural Insurance

Coverage to protect your farm:

  • - Fire and Defined Events - Farm Buildings, equipment and contents
  • - Personal Home Buildings and Contents
  • - Burglary and Theft
  • - Public and Products Liability
  • - Motor Vehicles and Mobile Equipment
  • - Livestock
  • - Equine & Bloodstock
  • - Farm Property in Transit
  • - Fences
  • - Trees
  • - Growing Crops
  • - Machinery
  • - Electronic Equipment
  • - Personal Accident and Illness
  • - Tax Audit
  • - Additional working cost

Fidelity Guarantee

Often included under a Comprehensive Crime policy, Fidelity Guarantee covers an employer for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in the course of employment

Fire and Extraneous Perils

Not all policies provide “all risks” cover. This composite policy can include cover for loss or damage resulting from a selection or all of the following perils: Fire, Lightning, Explosion, Aircraft, Earthquake, Storm & Tempest, Rainwater, Water Damage, Flood, Malicious Damage, Riots & Strikes, Impact by Vehicles or Animals.

Freight Forwarder's Liability

Includes covers for liabilities against third parties, loss of or damage to cargo, errors and omissions, removal of abandoned cargo, breach of regulations and loss of or damage to owned or leased equipment.

General Property

General Property insurance extend cover for loss or damage to portable equipment whilst away form an office and thus excluded under content cover.


Some business property building covers exclude glass particularly plate glass which need to be declared to insurers and specified on certain policies.

Group Personal Accident

Group Personal Accident provides protection against a loss by death or injury to employees.

Growing Crops

A specified form of insurance for crops. (Material Damage insurance does not cover growing crops).

Industrial Special Risks

Property damage and consequential loss cover. This policy is designed to protect physical assets including buildings, stock, plant and machinery and other property.

Internet Liability

A special combined Professional Indemnity, Public Liability and Internet Liability policy for ISP's, Software Developers, Computer Bureaus etc.

Journey Injury Cover

The insurance of employees engaged in direct travel between the bounds of their normal residence and place of work in the states of NSW, Vic, SA, Tas and WA where such cover is excluded under current Workers Compensation legislation.

Landlord's Insurance

Landlord building and contents insurance usually covers your building against risks from catastrophes, such as fire, storms and other natural disasters. It will usually include cover for the fixtures such as light fittings, carpets, ovens, stovetops and window coverings. You can also protect yourself from financial loss caused by damage to your rental property by your tenants or their guests, and loss of income due to unpaid rent. A landlord’s policy will include accidental damage caused by tenants, theft of your property by your tenants, malicious damage caused by tenants, and loss of rent due to tenants leaving without paying.

Legal Expenses

Often an extension to most liability policies, legal expenses cover extends indemnity for defence and investigation costs incurred even where the legal liability being claimed cannot be established.


A specialised form of cover for livestock. (Material Damage insurance does not cover livestock).

Loss of Hire / Standby Charges

Loss of Hire insurance generally protects a shipowner from loss of income arising from physical damage to the vessel.

Machinery Breakdown
(Material Damage / Business Interruption)

Machinery Breakdown Insurance covers damages arising from mechanical and electrical breakdowns as well as accidental external means to plant and machinery.

Malicious Product Tampering

To indemnify the insured for Loss which results directly from Product Tampering. Loss under this Policy can include Loss Net Profit, Recall Costs and Extra Expenses incurred to re-establish the affected product to the level of predicted sales had the Product Tampering not occurred. The policy may also cover fees and expenses of independent Specialist Consultants.

Marine Charterer's Liability

Charterer's Liability on vessels chartered by or on behalf of the Insured either for the carriage of cargoes or for other use as required.

Marine Cargo & Transit Covers

Cover for goods in transit, often extending to include cover for both inland and overseas transits. Covers are available for either an Annual Marine Cargo policy or for one-off individual transits.

Marine Consequential Loss

Cover against loss of profits and/or additional cost of working following interruption or interference to the business where goods and/or merchandise insured under a Marine Transit Policy are lost, destroyed or damaged during transit by any cause or event insured thereunder.

Marine Hull

Cover for material damage to marine vessels and machinery.

Marine Liability - P&I

Protection & Indemnity to cover Public Liability for Third Party Bodily Injury and/or Property Damage arising out of the use of watercraft.


Property policies often exclude covers for damage to cash, bank notes, treasury notes, cheques, postal orders, money orders, stamps, deeds, bonds, bills of exchange, promissory notes and securities.

Motor Vehicle

Often covering both material damage to road registered motor vehicles and registered plant and equipment as well as third party liability resulting from a motor vehicle accident. The cover can generally extend to include vehicle accessories and trailers.

Non-Owned Aircraft Liability

To cover the legal Liability of the Insured or its Authorised Pilot for:

  • (a) Third Party bodily injury and/or property damage resulting from the Insured use of a non-owned aircraft; and
  • (b) Accidental loss of or damage to a non-owned aircraft whilst under the control of the Insured or its authorised Pilot.

Personal Accident / Illness

Covers lost income when a person is unable to work due to injury or sickness. A useful cover for self-employed persons who may suffer a loss of imcome due to injury or illnes and who do not have any sick leave entitlement.


Cover for material damage and liability for smaller marine vessels.

Political Risk

Protects overseas investments against unpredictable losses from a wide range of political perils often including cover for loss from foreign government’s action or inaction, a political uprising or currency inconvertibility.

Pollution & Environmental Impairment

Indemnification against gradual pollution, as opposed to sudden and accidental pollution which is normally covered under General Liability cover.

Product Contamination or Accidental Product Contamination

Covers accidental contamination, impairment or mislabelling of product during production or manufacture as above; product recall expense; reimbursement of expenses to recall products manufactured, including advertising, transportation and replacement product.

Product Performance Guarantee

Covers legal liability to repair or replace defective products made, sold or distributed by the Insured.

Product Recall

A Product Recall Liability policy protects your business from the significant financial and reputational costs associated with a product recall.

Professional Indemnity / Errors & Omissions

Professional indemnity insurance is designed for professionals who provide advice or services to their customers. It protects your business against legal costs and claims by third parties for damages arising from acts, omissions or breaches of professional duty in the course of your business.

Protection & Indemnity

A comprehensive liability cover for maritime liability risks associated with the operation of a waterborne vessel

Public and Products Liability

Coverage for legal liability resulting from third party property damage or third party injury caused by the insured.

Sprinkler Leakage

Coverage for property damage caused by the accidental discharge or leakage of water or other substances from automatic sprinkler systems

Stevedoring Liability

Due to the environment that stevedores work in, ie. partly on land and partly on water, plus the different liabilities that can be imposed on stevedores, the General Liability policy will need amendment to cater for these "different" liabilities. Alternatively, a separate "stand alone" Stevedoring Liability policy may be required. This may be necessary as not all liability insurers have the reinsurance protection or experience to write Stevedoring Liability.

Tax Audit

Indemnity for professional fees incurred in consequence of a random Taxation Department investigation.

Trade Credit Insurance

To cover the risk trade debtors failing to pay debts due to their insolvency or protracted default. This cover is commonly associated with Export Sales (via EFIC). In all instances the cover is subject to strict credit control which must be observed at all times and varied only with agreement of the Insurer.

Trustees Liability

Trustees, both individual and Corporations, may be covered for alleged breached of fiduciary obligations.

Umbrella Liability

An excess or top-up public liability policy which can increase the limits of liability on multiple third party liability covers including Public and Products Liability, Motor Vehicles, Corporate Travel, and other third party liability policies effected overseas for overseas territorial limits and specific overseas jurisdictions.


Valuables cover provides extra protection for accidental loss or damage to personal valuables in or away from home, such as jewellery, cameras and mobile phones.

Workers’ Compensation / Extra Territorial Workers’ Compensation

All Australian States and Territories have legislation specifying minimum coverage requirements for injury suffered by employees during the course of business.