When it comes to running your own business, an important consideration is getting your business insurance sorted. There are many kinds of coverages on the market and it can feel a bit overwhelming when deciding which coverages to select.
There isn’t a ‘one-size-fits-all’ policy when it comes to getting your insurance sorted because no two businesses are the same. For example, an accountant is going to be exposed to different risks than a plumber, therefore the types of insurance and levels of cover needed are going to be different.
They each have their own unique risk factors which effect the type of cover required. Some of these factors include the type of industry your business operates in, how many employees you have, your business’ revenue and your insurance claims history.
Regardless of the industry you operate in, business insurance is an important part of managing the risks of any small business. It’s important to keep in mind that some type of business may be compulsory as legislative obligation, a requirement in a business contract that you enter, or a condition of your membership of a professional board/ association.
Let’s take a look at some of the different types of business insurance you can consider when insuring your assets, liabilities and your revenue.
Public Liability insurance
A fundamental type of insurance that most businesses (even home-based businesses) can consider is Public Liability insurance. Running your own business means you have a legal responsibility to take reasonable steps for the safety of your customers, suppliers, community and their property.
Public Liability Insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured or sustain property damage as a result of your negligent business activities.
Professional Indemnity insurance
If your business delivers professional services or advice, then Professional Indemnity insurance is a business insurance to consider. Professional Indemnity (PI) insurance* is a form of protection for businesses that provide specialist services or professional advice.
It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. PI Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
A claim can arise from something as simple as giving the incorrect advice, a miscalculation or providing an incorrect diagnosis or treatment.
Some professions for which Professional Indemnity insurance is available include: chiropractors, consultants, engineers, architects, real estate agents, and accountants, just to name a few.
Sometimes referred to as a “BizPack”, Business Insurance* is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). A Business Insurance package can also cover your portable equipment, glass and for loss of revenue due to business interruption in specified circumstances. In addition, cover is available for public liability, tax audit, employment practices and statutory liability risks.
Business Insurance options can be tailored to suit the nature of your business and to cover the areas that you think are the biggest risk. You can select the cover options that are most appropriate to your business like the level of cover and type of risks you are protecting your business from.
As much as you may plan to keep your business safe and have a back-up plan in place, the reality is you can’t predict the amount of damage an unforeseen event may have upon your business. If your business premises, assets and stock were impacted by a fire or severe storm for example, the last thing you want is to be to out of operation. This is where Business Interruption cover is something to think about.
Business Interruption cover* provides protection for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire). It is also designed to assist your business to recover from an insured event by paying ongoing expenses (such as wages or rent).
Management Liability insurance
Australia has an ever-changing regulatory environment which adds to the risk of operating a business both big and small. If you are a company director, officer or senior manager then Management Liability insurance should be on your radar.
Management liability insurance* protects directors and officers and the insured company itself from the many exposures relating to the management of a company.
Some of these main exposures include:
- OH& S dramas
- Unfair Dismissal
- Sexual Harassment
- Breach of statutory duty
- Statutory fines & penalties
Cyber Liability insurance
Like most small businesses, you rely on having a website, storing sensitive customer data and performing financial transactions online. If you have a plan in place to protect your business from hackers and cyber-criminals, you may want to add in Cyber Liability insurance as an extra layer of security.
Cyber Liability insurance* is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered. Examples of the types of risks Cyber Liability insurance can assist with are inadvertent loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event.
Tax Audit insurance
No one likes a call from the taxman, so Don’t leave it to chance and consider how Tax Audit insurance can provide peace of mind when it comes to keeping the books in order.
Tax Audit Insurance* covers a business for specified costs in the event that it is selected by the Australian Tax Office for auditing. The policy covers the costs of accountants and other professional fees incurred in the course of an audit. The auditing process can be time consuming and complicated. You will almost certainly want the services of an external accountant or similar professional and their fees can quickly add up.
Shopping around for business insurance quotes shouldn’t be a hassle and at BizCover we aim to keep it as fuss free as possible. Enter the details of your business and the type of cover you’re after. We will provide multiple quotes from some of Australia’s leading insurers in minutes.
*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.