The Ins and Out of Small Business Insurance

Mar 31 2016 by Vogue Financial

Depending on the nature of your business activities, there are a range of insurance policies available to cover you against everyday risks that your business may face. In the event of such a risk materialising, small business insurance is there to minimise the impacts the event may have on the day-to-day operations of your business, and to also assist you financially. Some types of business insurance policies are mandatory for Australian businesses in certain situations or industries.

Common types of business insurance include but are not limited to:

PUBLIC & PRODUCTS LIABILITY

The operations or activities of your business can place people or property at risk of injury or damage. If you are a business owner, it is important to ensure you are covered against such risks as the consequences can quite often be costly and have a large impact upon your business without the correct level of cover. Public and products liability may protect you from such impacts.

PROFESSIONAL INDEMNITY

If your business or profession involves providing a service or advice, it is more than likely you will require professional indemnity insurance. This type of policy may help protect you against any potential financial loss, bodily/personal injury or property damage resulting from an act, error or omission in the professional service you have provided.

GENERAL PROPERTY

General property insurance is available to provide you with the assurance that in the event of your equipment being accidentally damaged, you have the resources to be able to replace it as quickly as possible so that your business can continue to operate with minimal disruption.

MATERIAL DAMAGE

For many small businesses, damage to your building or property is a real threat. It is therefore important to ensure you are covered in the event of an unforeseen circumstance such as fire occurring. This type of insurance may help to recover the costs associated with replacing the contents of your building and property if it is destroyed under such circumstances.

THEFT

To protect your business against potential theft, a policy that provides coverage for stolen contents and/or stock can mean the difference between continuing to operate as per normal or the disruption of the day to day running of your business which can be costly.

BUSINESS INTERRUPTION

A business interruption insurance policy is designed to potentially provide financial protection for the consequential loss of revenue that may result after an unforeseen circumstance has occurred and disrupted the normal daily operations of your business.

MONEY

Provides cover for losses associated with money including credit cards, cheques and vouchers to name a few.

GLASS

If you are a cafe owner for example, having a shattered glass shop front can not only be a danger for your customers but can also leave your contents exposed. This type of policy may cover you for accidental breakage of fixed glass and the replacement and/or temporary security required to protect your premises in the meantime.

PERSONAL ACCIDENT

If you as the business owner, or one of your employees has an accident while at work, personal accident insurance may help to minimise the impact on your business. Key person insurance is another common policy small businesses may choose to engage as it helps to cover the loss of a key member of staff in the company. This can be taken on more than one member of staff and is particularly useful in partnerships or joint ventures.

Have you got appropriate protection in place for your business? If you’re not sure, contact us today for a free risk assessment.

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