Do you own a small business? Finding the right insurance cover can be challenging. The types of small business insurance you need will depend on the type of business you operate. We understand you don’t have the luxury of insuring against every risk exposure. Read on to find out what types of insurance all small business owners should consider.
Why you must have business insurance
The Australian Government requires businesses to have the appropriate insurance to protect their business and customers. While some types of insurance are required by contract or law, others are compulsory depending on what kind of industry you operate in. Other business insurances protect your assets and liabilities. When your business is adequately insured, your risk is managed, and business assets, revenue and liabilities are better protected.
Compulsory forms of insurance for businesses
In Australia, you’re required by law to have workers’ compensation insurance and public liability insurance. Workers’ compensation insurance is compulsory for any business that has employees. This type of insurance protects you and your workers against any financial hardship caused by an accident while people are working for your business.
Public liability insurance is compulsory for some types of businesses. It covers you against third-party death, injury or damage to third-party property.
Six types of small business insurance policies you should consider
To preserve your small business assets, liabilities, and revenue, Business Victoria recommends you have the following insurance policies.
1. Personal Accident and Illness / Income Protection Insurance
This insurance policy covers loss of income if any sickness or accident occurs that may prevent you from working. Contractors or sole traders who are not eligible for Workers’ Compensation Insurance should have this type of insurance.
2. General Property Insurance
You must have this type of insurance to ensure your property and assets are protected and that your business can operate despite damage or theft. For example, if thieves stole your laptops and mobile phones, this insurance could provide replacement items.
3. Management Liability Insurance
What would you do if your business faced negligence claims when performing duties? This insurance policy provides coverage for company managers, such as Directors or Senior Managers, against liability for mismanagement. It also protects against loss due to employee theft or fraud, statutory liability, and employment practices liability.
4. Public & Products Liability Insurance
This insurance policy provides cover against claims that your products may have caused, resulting in damage or injury. This insurance is essential if you supply goods to customers.
5. Professional Indemnity Insurance
This insurance policy protects professionals in various industries against claims made by a client for professional advice or negligence that results in a financial loss. If you offer advice or provide a professional service, this insurance should be considered.
6. Cyber Insurance
With technological advances, most businesses face real threats posed by cyber risks. This insurance policy protects against losses to your company and liability to others following a cyber breach. This insurance policy is critical if your technology stores sensitive customer information. In the event of a cyber-attack, cyber insurance can also cover any legal costs or damages associated with a data breach.
Atlantic Insurance is here to help small business owners
At Atlantic Insurance, we have assisted businesses of all sizes and industries since the early 1980s. Our team has developed a strong understanding of various small businesses’ insurance needs and risks. If you need clarification about which policies may be the right choice for your small business, contact us today. Our experienced Client Managers will provide comprehensive advice on your business’s most cost-effective insurance options.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.
