It sounds boring, but getting the name on your business' insurance policy exactly right is one of the simplest things that can save you from massive headaches later.
Whether you run a small cafe, own rental properties through a trust, or operate a company with contractors - the name listed on the policy determines who’s actually covered when something happens. Here’s a simple guide to getting it right.
Why the insured name on your business insurance policy matters
Who’s covered: Insurers will only pay claims to the legal entity shown on the policy. If the wrong name is listed, the person or business that suffers the loss may not be able to claim.
Avoid disputes: Insurers can decline or delay claims while they sort out whether the insured named on the policy is actually the party with the loss. That means delayed repairs, lost income and legal costs.
Regulatory and legal clarity: For taxable events, legal proceedings or insolvency matters, having the correct insured entity avoids messy legal and tax issues.
Common name mistakes we see as business insurance brokers
Using a trading name instead of the legal name: “Rocket Cakes” may be the shop name, but the legal entity could be “Rocket Cakes Pty Ltd.” Insurers need the legal entity.
Listing a director or individual rather than the company: A claim might relate to the company, not the director personally (and vice versa).
Wrong trust wording: Trusts must be shown precisely (e.g. “John Smith as trustee for the Smith Family Trust”).
Forgetting to add related entities: If multiple entities are involved in a business (management company, trading entity, holding company) they may all need cover or to be listed as “insured” on the policy.
Incorrect ABN/ACN or outdated names: Companies change names; trusts can change trustees. If the policy hasn’t been updated, coverage may be at risk.
A trust isn’t a legal entity - what that means for your insurance
Short answer? A trust itself is not a separate legal entity, so you should not list the trust name on its own as the insured. Instead, insurance must name the trustee (the legal person or company) and show that they’re acting "as trustee for" the trust.
Why this matters: Insurers underwrite and pay claims to legal persons or entities - not to abstract arrangements like a trust. If the policy only names the trust (for example, “Smith Family Trust”) without naming the trustee correctly (for example, “Smith Holdings Pty Ltd as trustee for the Smith Family Trust”), the insurer may argue the policy doesn’t cover the actual legal owner or person with legal responsibility.
How different legal entities should appear on a business insurance policy
Sole trader: Use the individual’s full legal name and, if you trade under a business name, include “trading as” (e.g., “Jane Elizabeth Smith trading as Jane’s Florist”).
Partnership: Use the names of the partners or the partnership name and specify partners (e.g., “Smith & Jones Partnership” or “John Smith and Mary Jones trading as Smith & Jones”).
Company: Use the company’s full legal name and ACN if possible (e.g., “BlueRock Bakery Pty Ltd ACN 123 456 789”).
Trusts: Trusts must specify the trustee and the trust name (e.g., “BlueRock Holdings Pty Ltd as trustee for the BlueRock Family Trust” or “John Smith as trustee for the Smith Family Trust”). Insurers often require the trustee’s legal entity first, then the trust name.
Joint insureds: If two or more entities share interest, list each entity clearly and exactly.
Groups of entities: If you operate multiple entities and want them all covered, either list each entity or use a clear definition clause describing the group of entities.
Checklist before you take out a new or renew a policy
- Confirm the exact legal name (ASIC extract, trust deed etc.).
- Ensure the policy shows that exact name (including “as trustee for” where applicable).
- Add all relevant entities (owner, operator, trustee, management company).
Speak to a business insurance broker for a policy review
Getting the insured name right is essential to protecting your business. Spend 15 minutes now checking your policy and the underlying legal documents. It’s a small bit of effort that can save months of pain and a lot of money if you ever need to claim.
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