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  • #984773
    j.dawson
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    i’m a sole operator/owner. I have a registered business name, abn and insurance. What happens when i want to register a second business name (same industry, just different service offering) do i have to get separate insurance?
    can i have two separate business names under one policy?
    Should’ve just named my business more generally from the start and not been so specific.
    thanks.

    #1149580
    BradFry
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    Hi J,

    Your insurance policy will list you as the ‘insured’. Typically your premium is calculated on the risk that something happens (an insured event). Say for professional indemnity insurance it would be based on your business’ industry, how many employees you have, what your turnover is, etc.

    Simply listing a second business under the ‘insured’ section would not be ok as it becomes too complicated for underwriters of your insurance to cost out the risk to them. You will more than likely have to get another policy.

    It does not matter what your named business is, whether complex or simple. It will only be covered if the business name is defined under the ‘insured’ section of the policy.

    Hope this helps.

    Brad

    #1149581
    alliedib
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    Hi J,

    Generally speaking, the answer (unfortunately for those that like black and white) is that it depends on what the two service offerings are. In some instances you may be able to get both businesses covered under the one policy, some you wont.
    As examples where a client has 1 ABN but 2 businesses and how the covers were approached:

    1) a client in the food industry – they have 1 store in Town X which is a sandwich shop, the other in Town Y which is a fish & chip takeaway food store. Due to the different risk requirements of each operation we advised that certain risks be insured separately (Fire / Business Interruption etc).

    2) another client in the food industry – they have a restaurant (eg. Eat at Joes) but also have a ‘ready to eat’ meal range that is available through various stores (eg Eat at Joes at Home). We were able to negotiate with the insurer to incorporate both risks onto the same policy as the secondary business operation was incidental to the existing business. The insurer rated the risk based on the restaurant operation but then adjusted the premium to reflect the additional risk associated with the meal range.

    My suggestion – talk to you insurer / insurance broker and they should be able to advise you whether your 2nd service offering can be covered under your original policy. If it can’t, they may be able to accumulate the risks that can be combined under 1 policy and then take out separate covers for the remaining risks.

    As for the definition of the ‘Insured’, BradFry is right when he says that you are the Insured. Insurance policies will cover the Insured, for their Business Operations as defined in the policy schedule, at the Locations listed in the policy schedule. You do not need to necessarily need to list every trading name, as long as that name is registered to your ABN.

    If you have any further questions please feel free to ask.

    Regards,

    Mark

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