As each business is unique, so are the risks associated with running it. Having the right insurance cover will help minimise uncertainty as well as exposure to risk and could protect your business and income against any loss. Just like personal insurance, business insurance provides coverage to protect businesses from losses due to events that may occur during the course of owning and operating a business.
There are various kinds of business insurance policies available in the market. Some forms of business insurance are compulsory for Australian businesses, such as workers compensation insurance, public liability insurance and personal injury insurance. However, depending on the nature of your business, it is important to consider other types of insurance.
As a business owner, you need to evaluate your insurance needs based on questions such as, but not limited to:
- Do you serve customers in public place or your premises?
- Do you have staff working for you?
- Is most of your business done online?
Below, we will explain the different kinds of business insurance and what they can cover you for.
Workers Compensation Insurance
Workers Compensation Insurance is mandatory if you have one or more staff employed. It helps to protect you as an employer and your staff against financial loss as a result of a workplace accident.
Public liability insurance protects you and your business against the financial risk of being liable for negligence resulting in injury, damage to property or loss of life. There are a number of challenges with running a small business already, and the last thing you want to worry about is paying huge legal fees if an accident occurs. There are various types of liability insurance and their relevance varies depending on the industry you are operating in such as product liability (if you sell, supply or deliver goods which may cause injury, death or damage) and professional indemnity (breach of contract).
Management Liability Insurance
Management liability insurance is specifically for private businesses. This kind of insurance provides cover in the case of a manager or director being involved in illegal or unethical practices that may cause loss to individuals or other businesses. It generally will cover your assets and business against the loss.
Property or building insurance covers business premises, machinery, equipment, inventory and furniture in the event of fire, storm or hail damage etc. Theft insurance covers you against the loss or damage to your contents due to theft or burglary.
Business Interruption Insurance
Business interruption insurance covers losses when you cannot operate your business for a period of time due to a disaster such as fire or flood, as a result of which the business had to close down or whilst it is being rebuilt after the disaster.
Cyber Liability Insurance
Cyber liability insurance covers financial losses due to a cyber-attack or data breach. Every business with an online presence is at risk of cybercrime, so it is important to ensure you are covered in the event of a cyber-attack.
If you need advice on business insurance or would like your current policies reviewed, get in touch with one of our insurance brokers today.
General Advice Warning
This advice does not take into account any of your particular objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs.
Before you make any decision about whether to acquire the policy, you should obtain and read the product disclosure statement for the policy.