When you are a small business owner, there’s no denying the importance of
protecting your assets with Small Business Insurance. While it can seem a bit
daunting at times, we share 7 of the top insurances your small business should
consider.
When it comes to insuring your business, no two businesses are the same with
each having its unique business requirements. Your insurance needs will vary
depending on a variety of factors likes:
- The industry your business operates in
- Your trade/ occupation
- The type of business you run
- Being a mobile or fixed premises type of business
Additional factors like the size and location of your business and your exposure
to certain risk will also play an influence. A hairdresser will have different
challenges and risks, to say, an accountant, gift shop owner, or an architect.
One thing that is for certain is the importance of finding the right insurance to
protect your small and manage the risks involved when running your business.
And the reality is no matter what type of business you’re in, you’re going to be
faced with risks on a daily basis.
For many types of businesses, insurance may even be compulsory: a legislative
requirement, a condition of being a member of a professional board or outlined
as a requirement by a contract you enter into with a landlord or client.
Luckily, these days, there are many different types of policy options to select
from and business insurance policies can be tailored to suit your unique business
needs. As part of your business plan it is wise to consider insuring your assets,
your revenue and your liabilities, starting with one of the most important forms
of cover:
1. Public Liability Insurance
This is one type of insurance that every business needs to consider from
butchers to personal trainers and even if you are a home-based business.
It provides cover for you and your employees for bodily injury or property
damage caused by services or products provided by your business.
For example, if a customer falls down a set of stairs at your business and
breaks their leg, or an employee damages your customer’s furniture whilst
conducting repairs to their house, you can rest easy knowing that you are
covered for any related expenses.
Public Liability insurance covers the cost of compensation payable as well
as your defence costs. Without having the correct level of cover in place, apotential claim could have a devastating impact on your finances, enough
to put your small business out of business.
Public Liability Insurance explained.
2. Professional Indemnity Insurance
If your small business provides a professional service or advice, thenProfessional Indemnity insurance (PI) is a no-brainer. Designed to protect professionals against liability for damages and legal costs, a PI policy
covers the associated legal costs of defending yourself from claims arising
from an act, omission or breach of duty during the course of your work.
It is important to be aware that your Public Liability policy does not protect
you if there is a financial loss only or if the loss was caused by a breach of
your professional duty.
Common types of professions that take out Professional Indemnity
insurance include real estate agents, consultants and accountants,
however, there are plenty more. For many professions, it is a requirement
to have a PI policy before they even start to offer their services. Every
industry has its own level of risks which can be tailored for with a policy
specific to the profession.
Professional Indemnity Insurance explained.
3. Business Insurance
Often sold as a business pack, business insurance offers an array of
different coverage options to select from, with the most common being
Building, Contents, Theft and Glass cover. These coverages are designed
to protect your business assets from losses caused by unpredictable
events like storm, fire, theft or even accidental damage.
Portable Equipment cover can even provide protection for your valuable
business assets while you’re on the move, including cover for mobiles,
laptops and tools of trade from accidental loss or damage.
Every business will have its own unique risks and insurance needs, so take
the time to insure the things your business couldn’t afford to function
without. Business Insurance explained.
4. Business Interruption
Stop for a moment and consider how your business could survive if it had
to close its doors due to an unforeseeable disaster? The impact of a fire,
storm or theft could mean having to rebuild your business from scratch, or
even a small disruption like a burst water pipe could see you out of
business temporarily. How would this disruption financially impact your
business?
While your Business Insurance will help cover your business assets,
Business Interruption assists your business when it is no longer earning
any revenue, or if your revenue suddenly dropped as a result from
interruption caused by material damage events.
5. Management Liability Insurance
Management Liability insurance is a form of insurance designed to protect
the company and the people who manage the company. It protects those
in roles such as the Company Director and Senior Managers against the
everyday risks and exposures of running a business.
It can also provide cover against:
- Statutory fines and penalties
- Employment liabilities such as Unfair dismissal, sexual harassmentand bullying
Additionally, Management Liability can protect a business against losses
arising from dishonest acts such as theft and fraud by employees,
including theft of stock.
Ensure your business is sufficiently protected and not faced with the risk of
losing not only your business but your personal assets too if a claim were
to occur.bManagement Liability Insurance explained.
6. Cyber Liability Insurance
With more and more small businesses having an online presence, the
threat of cyber criminals becomes another risk your business needs to
consider protection from.
Cyber Liability insurance helps to protect your business from cyber attacks
by covering against the expense and legal costs associated with data
breaches which may occur after being hacked or when an act of theft or
loss of client information. The potential costs of repairing the damage as
well as associated legal costs can have a devastating impact on your
business and its reputation. Cyber Liability Insurance explained.
7. Tax Audit Insurance
It’s the call any small business dreads, a call from the Australian Tax Office
(ATO) advising your business is going to be audited. With more and more
small businesses being subjected to audits, it might be the right time to
consider Tax Audit Insurance.
Not only do tax audits take up time, but they can be expensive, stressful
and leaving you out of pocket for thousands of dollars, something all small
business owners could live without.
Stress no more by having Tax Audit insurance, providing protection by
covering the expenses insured during an audit or investigation, including
the cost of professional fees from accountants, lawyers, bookkeepers and
any other associated advisors required.
Tax Audit Insurance explained.
Like anything you purchase, it is important to shop around and do your research,
especially when it comes to protecting your business with the right insurance.
Visiting a comparison site can not only help save you time but also a few dollars
too. If you’re still a bit unsure, having a chat to a friendly insurance expert can
help answer any of those technical questions that you might have.
Competitive quotes are only a few clicks or a phone call away to the friendly
BizCover team, who can get you covered in minutes.
Author
BizCover
BizCover is Australia’s number one online small business insurance service. They help you compare and buy the right cover – at the right price – from some of Australia’s leading insurance companies. Compare quotes now.
Compare quotes now – link to – https://www.bizcover.com.au/
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