🗝️ And What Happens To Your Insurance When You Do?
If you’re thinking about selling your business — whether it’s a bustling café in Hobart, a growing tradie operation, or a family-run shop in Launceston — it pays to think ahead about your business insurance Tasmania needs.
At RSM Tasmania, we’ve seen too many business owners trip up by assuming their business insurance Tasmania policies simply stop or magically transfer when the ‘For Sale’ sign goes up. Spoiler alert: they don’t!
Here’s what you need to know before you pop the champagne on settlement day.
Why Insurance Still Matters When You’re Handing Over the Keys
When you own a business, you (and your insurance) cover everything from your stock and premises to public liability and your people. If your business is on the market, all those risks don’t just vanish overnight — and neither do your responsibilities.
Imagine this: a customer slips in your shop the day before settlement. If your public liability policy lapsed early, guess who’s on the hook? You are. Same goes for property damage, theft or any other mishaps right up to the final handover.
The rule of thumb: Keep your insurance current until the exact date your ownership ends.
Can You Just Transfer Your Policies to the Buyer?
Not quite. Business insurance policies can’t be ‘handed over’ like the keys to your front door. The new owner needs to take out their own cover, tailored to how they’ll run things.
In some cases, you might be asked to provide proof of cover up to the handover date — especially if your lease, franchise agreement or lender requires it.
What to Double-Check Before You Sell
✅ Talk to Your Insurance Broker Early
The earlier, the better. We can review your current policies, check for gaps, and make sure you’re not paying for cover you don’t need after settlement.
✅ Be Clear on Contracts
Any contracts, leases or agreements linked to your business may have insurance requirements. Make sure they’re still valid and up to date.
✅ Plan for Run-Off Cover
Some policies, like professional indemnity insurance, may need run-off cover. This protects you from claims made after you’ve sold the business for things that happened on your watch. Handy if you’re a consultant or run a service-based business.
✅ Keep Everything in Writing
Your buyer should sort out their own cover before settlement. Make it crystal clear in the contract who’s responsible for what, and when.
✅ Don’t Get Caught Out
Selling your business is a big milestone — but don’t let insurance hiccups spoil the celebration. A little planning now means you can hand over the keys with peace of mind, knowing you’re covered for any last-minute surprises.
Need help sorting out your business insurance Tasmania cover before selling?
At RSM Tasmania, our brokers are locals — we’ve been helping businesses across the state protect what matters for nearly 20 years.
✅ Helpful Resource
For more on what’s involved, check out:
👉 Changing, selling or closing your business – ATO
📌 Got Questions? Let’s Chat!
If you’re planning to sell — or even just thinking about it — reach out for a chat with one of our local brokers. No jargon, no fuss, just straight answers to keep your business and your back pocket safe.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
