Just imagine: A phone call out of the blue. The caller has a voice you don’t recognise. He’s telling you he is hurt – badly – and you’re responsible. You hang up.

If you’re a sole trader or small business owner, you know how important it is to protect your work and your customers. Even when you take care, accidents can still happen. Without insurance, you could face large legal or compensation costs that might seriously affect your business.

As a small business owner, you may already hold Public Liability insurance*. But do you know exactly what your policy does and does not cover?

Public Liability insurance. It’s one of those fundamental covers that most SMEs are familiar with.

There are many legal liabilities that come with business ownership, which is why many business owners look for ways to reduce liability claims against their business and minimise Public Liability risks.

Cyber Liability insurance has been available since at least the year 2000, however many small businesses in Australia are not taking advantage of the protections a policy can provide. According to one survey, just 40% of businesses1 have any sort of cover in place.

Public Liability and Professional Indemnity are two of the most common types of business insurance in Australia. They both cover compensation claims, but the main distinction is the types of events and risks covered.

Many small business owners and start-up owners know that they can reduce their risk via online business insurance, and many do just that. However, what if your business is a purely online business? Can online businesses benefit from reducing their risk with business insurance? And if so, what types of business insurance might owners of online businesses consider for reducing their risk?

It may have taken some time for the reality to hit, but the wider public is now starting to realise that hackers aren’t just fictional brooding movie villains – they’re real people doing real damage across the globe, particularly in Australia and especially to small businesses.