If you own a small business, one of the most important things you need to protect your assets is Small Business Insurance. But what kind of insurance do you need?
There’s no ‘one-size-fits-all’ when it comes to insuring a business, just as there are no two businesses that are the same. Your insurance needs depend on a variety of factors, such as the industry you operate in, your trade, and the type of business you run. Finding the right insurance is an essential part of managing the risks involved in operating your business. All businesses confront an element of risk daily, regardless of their size or the industry they are in.
It’s also important to note that some types of insurance are compulsory for many kinds of businesses, whether it’s a legislative requirement, an obligation as a member of a professional board or association or required by a contract you enter into with a landlord or a customer. Fortunately, these days there are a variety of policy options to choose from and business insurance policies can be tailored to suit your individual business needs.
Public Liability Insurance
Every business should consider Public Liability Insurance – even home-based businesses. It covers you and your employees for potential liabilities to third parties if your products or services cause bodily injury or property damage.
Public liability not only covers the cost of compensation but your defence costs as well. Without the correct level of cover, a potential claim could cost you thousands of dollars (or even hundreds of thousands of dollars), and could be enough to put a small business out of business!
Professional Indemnity Insurance
If your business or profession involves providing a service or advice, then Professional Indemnity (PI) Insurance is a must-have. It protects professionals against liability for damages and the legal costs associated with defending yourself against claims arising from an act, omission, or breach of duty in the course of your work. Your Public Liability policy does not provide protection if there is financial loss only or if the cause of the damage was a breach of professional duty, so it’s crucial you know the difference.
Business Insurance often comes as a package encompassing a range of different coverage options for you to choose from, with the most common being Building, Contents, Theft, Glass, and General Property. It is designed to protect you for material damage losses from unexpected events such as fire, storm, theft, and accidental damage. It can also provide cover for loss or damage to portable and valuable possessions, including laptops and mobile phones. You also have the option of bundling your Public Liability policy.
Management Liability Insurance
Management Liability Insurance protects the company and the people who manage the company, such as the Company Director and Senior Managers, against the risks and exposures of running the business – your liability for mismanagement. It covers against allegations and acts of misconduct and legislative breaches, including statutory fines and penalties, defamation, statutory breach of duty, OH&S issues, unfair dismissal, and sexual harassment. It also protects a business against losses arising from dishonest acts such as theft and fraud by employees, including theft of stock
Cyber Liability Insurance
If you have a website for your business or you store sensitive customer information on your computers or laptops, you should think about holding a Cyber Liability policy. Cyber Liability Insurance protects your business in the event of a cyber attack.
Tax Audit Insurance
With an increase in the number of small businesses being subjected to random tax audits by The Australian Taxation Office (ATO), it may be time to consider Tax Audit Insurance for your business. Dealing with audits can be a time consuming, expensive and stressful event, often leaving you out of pocket by thousands of dollars. Tax Audit Insurance is designed to provide protection by covering expenses incurred during an audit or investigation, including professional fees from accountants, lawyers, bookkeepers, and any other advisors that are required.
Having the right protection could mean the difference between continued success, and being left high and dry should you need to make a claim.