The term wholesale insurance is commonly used to describe insurance or financial services that are not treated as retail for the relevant client under the Corporations Act.

It is important to understand that “wholesale policy” is not simply another term for any business insurance policy.

How does this apply to general insurance? #

For general insurance, whether the client is treated as retail or wholesale depends on matters including:

• The type of insurance product
• Whether the insured is an individual or small business
• The rules in the Corporations Act and Regulations

Certain prescribed classes of general insurance can be treated as retail insurance when provided to an individual or small business.

Many commercial insurance products fall outside those prescribed retail classes.

Examples of commercial insurance #

Products commonly arranged for businesses can include:

• Professional Indemnity Insurance
• Public Liability Insurance
• Cyber Insurance
• Management Liability
• Contract Works Insurance

These products are commonly dealt with in the commercial or wholesale insurance market, but the legal classification should be considered under the applicable rules rather than relying solely on the product’s marketing description.

Different obligations can apply when financial services are provided to retail and wholesale clients, including disclosure, advice, documentation and other regulatory requirements.

You can also read What is a Retail Insurance Product?.

Contact our team if you have questions about how your insurance is classified.