Being a business owner is a road filled with challenges. While running a business you have to be prepared for several risks related to your services and products, employees, work environment, and countless other aspects. Regardless of the scale of your work, business insurance in Australia provides you a solid ground to operate freely in a vulnerable environment. However, the biggest question here is to find the right policies that protect you from the risks and provide adequate cover. The selection of insurance is more critical for small businesses that run on a limited budget yet are subject to risks that must be covered.
- Basic insurance needs of small businesses
Even a small business runs with some infrastructure that constitutes machines or at least a building or space. Also, you are liable for any damage, financial or physical, that happens to your customers due to your products or services. Therefore, every small business needs property insurance and business liability insurance at the least. Nonetheless, you can customize your insurance stack to fill any gap based on the type of business and its needs. For instance, if your work involves transportation of material or finished goods, you might add commercial auto coverage to protect your fleet.
- Types of insurance small businesses should have
Small enterprises have to be very careful in building their insurance stack. They need to weigh the risk requirements against the expenses and benefits they are likely to gain from the insurance in the long run. Knowing the rudiments of key plans can help you make a more informed and pragmatic decision.
- General liability insurance
This insurance covers property damage, physical injury, libel, and slander. A simple use case can be a customer accidentally slipping while buying stuff from your store. General liability insurance will help you pay the medical bills for the injured customer.
- Insurance for commercial property
The physical location of your enterprise and its belongings constitute the property of your business. It includes equipment, tools, furniture, inventory, etc. Any damage to these property elements is covered under commercial property insurance. If your office catches fire, this insurance is instrumental in reestablishing everything and swiftly getting back to your feet.
- Business income insurance
Consider the same example of your office catching fire. Not only your property will be destroyed, but you will also incur losses in income as you take time to restore and resume your business. Business income insurance over such losses in income due to wind damage, theft, fire, etc.
- Worker’s compensation insurance
Work environments are often risky and can cause minor to severe injuries. In case of such an unfortunate incident, you are liable to pay for the treatment and loss of wages to the employees for the time they are off work for recovery. Worker’s compensation insurance protects you from all such expenses. In extreme cases, if a serious injury results in disability or death, this insurance covers the cost of treatment and funeral as well.
- Insurance for commercial automobiles
Accidents can happen to anyone, anytime, and anywhere. When your employees are on the road driving an owned, leased, or rented vehicle, commercial automobile insurance covers the cost of repair in sorts of accidents.
- Professional liability insurance
Errors and omissions are likely to happen especially if you are delivering services based on your skills and expertise. Professional liability insurance covers any loss to the customer that occurs due to your advice.