Must-Have Types Of Insurance For Your Small Business
Apr 27, 2019
Starting a small business from the ground up can be an exhilarating experience, but it can also be overwhelming.
Not only do you have to avoid making mistakes but you also have to make some tough decisions including risk mitigation and how to protect your business.
As a business owner, you’re exposed to certain risks before you even start bringing in profits. A single slip up could mean the end of your business.
Fortunately, you can protect your livelihood and your business through business insurance.
However, with the plethora of business insurance policies out there, which one will make sure you are protected from all angles? How do you choose?
While your niche will often dictate the type of insurance that your business needs, here are four must-have forms of coverage:
Worker’s Compensation Cover
Unless you intend to run a sole proprietorship kind of business, you’re going to need worker’s compensation which is compulsory in Australia.
Worker’s compensation covers employees who suffer injuries on the job.
This type of coverage provides medical benefits, wage replacement, disability and death benefits in the event an employee is injured or dies while working.
The reason why you need worker’s compensation insurance is so your employees won’t sue your business for work-related injuries or deaths.
Worker’s compensation insurance is an excellent way to avoid future complications with your employees.
Never skip worker’s compensation insurance even when you consider your business as low-risk; because even slip and fall injuries could lead to pricey claims.
Errors & Omissions (E&O) Insurance
This is sometimes also referred to as professional liability insurance.
Errors and Omissions insurance defends your business against negligence, malpractice or errors in the rendering of your services to your customers.
This type of business insurance is particularly crucial for companies involved in financial advice, consultancy and professional practitioners such as doctors and lawyers.
However, that does not necessarily mean that other businesses don’t need professional liability insurance.
Different industries have unique concerns which are addressed in the E&O policy.
When getting professional liability coverage, make sure it covers negligence and malpractice concerns in your industry.
General Liability Insurance
Every business, even if it’s home-based or freelance business needs general liability insurance.
When it comes to business insurance, liability insurance can be considered the ultimate armour.
Basically, the policy shields you, and the entire business, from any damages or injuries, caused to a third party.
Therefore, general liability insurance protects your business from libel and slander, bodily injury, medical expenses and property damage from a third party.
Liability insurance is quite handy and a must-have for all business. Moreover, the terms of the policy can vary depending on your needs.
For instance, if non-paying clients are a growing concern for your business, you can always include account receivable protection to the policy.
Regardless of what type of business you have, it’s imperative that you protect your furniture, and assets such as computers and property.
Sometimes, property insurance can be included in general liability insurance. So, be sure to confirm with your insurer.
Property insurance protects your business in the event of smoke damage, fire, vandalism, theft, etc.
However, note that natural disasters such as earthquakes and floods are usually not included in the policy unless of course, you want them to be a part of the plan.
If your area isn’t prone to natural disasters, it might be smart to avoid including them.
Business insurance can be a lifesaver. The type of coverage you have can either make or break your business.
Choosing the right kinds of coverage for your company can help you steer clear of significant financial losses in the future.
For an obligation-free, competitive quote, professional insurance advice or more information on how we can help you, please contact one of our expert consultants today on (08) 8357 1422 or send a message through our website
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