What Kind of Business Insurance Do I Need?
Apr 26, 2019
Nothing is certain in life and this includes things that can affect your business.
Storms, natural disasters and even terrorism are all things that can have a substantial impact on your professional life.
As such, it is advisable to take the time to conduct a business insurance assessment.
This will ensure that the unexpected doesn’t stop your business operations in its tracks.
Here are some of the basic business insurance types that you may need.
General Liability Insurance
This coverage is essential for protecting you, your business and workers from any damages incurred.
This could be due to property damage, bodily injury, libel, slander, medical expenses, cost of defending lawsuits as well as judgements needed during an appeal process.
This type of insurance is usually sold as a catch-all and has many add-ons to tailor to your company and its level of risk.
For instance, if non-paying customers are a huge concern, then you can add accounts receivable protection to your policy.
It’s ideally worth keeping in mind that in most cases, a client will ask for evidence of general liability coverage before conducting business.
This is another reason to secure this type of policy before embarking on business.
This policy covers damages done to your business property. It not only protects your business premises but also its contents.
This includes office furniture, inventory, computers and any other item essential to your business operations.
Most policies ideally provide for expenses for protecting your company from further damage after a loss like fire.
These funds are typically used to keep your business running until the damage from the loss is repaired.
Workers Compensation Insurance
In Australia, employers are required to carry workers compensation insurance.
However, this is for those who have the required number of workers (usually from five and above).
This policy pays for lost wages and medical bills for employees who are injured while working for you.
The policy covers damages regardless of the party at fault in the accident.
If the worker dies, then compensation benefits will be paid to the family of the employee.
If you own a small business, it’s not mandatory to have workers comp insurance unless you have 5 or more workers.
However, it is still a good idea to carry this coverage to ensure you’re protected from legal liability when a worker is injured on the job.
Commercial Auto Insurance
Any vehicle that you use to run your business needs to be included in your commercial auto policy.
This policy will cover bodily injury and property damage to others caused by your business vehicle.
It is also possible to customise this policy to fit your specific needs like paying to replace a car that’s involved in an accident.
It is also worth noting that most personal auto insurance policies do not cover cars that are utilised for business purposes.
Professional Liability/ Error and Omissions
Is your business is involved in making recommendations, giving professional advice, designing products or any other professional service?
If so, then you’re subject to being sued if you make a wrong recommendation or faulty advice that results to harm or damages or the loss of money.
An Error and Ommissions policy will protect you and pay for the legal expenses in this type of situation.
Do you need a business insurance quote or need to talk in more detail about your situation to work out what’s best? At CBD Insurance, we are here for your needs.
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
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