Running a Business? Here’s our Top 6 insurance policies to keep you covered

Whether you are launching a new venture or have a well-established business, it is crucial that you have the right insurance in place.

The consequences of not having the right insurance in place can be catastrophic. A failure to adequately insure against a major property loss, such as a fire or storm, can leave you without the means to recover from a loss. Similarly, if your business is sued by a third party and found liable, the absence of insurance can leave you without the means to pay the required compensation and therefore result in the business being wound up, or worse.

So, what insurances should you be considering?

We’ve prepared a list of the Top 6 insurance policies purchased by small and medium businesses in Australia, based on our experience, below.

This is a general list only. The best way to ensure you are adequately covered is to GET IN TOUCH with a member of our team to schedule a time for a tailored risk review.

Top 6 Business Insurance Policies

1. Workers Compensation Insurance
Workers compensation insurance covers your employees for loss of income and medical expenses resulting from being injured whilst at work.

Workers compensation is mandatory in Australia for employers, with each State having different arrangements in place. Further information can be found by visiting the relevant government websites in each State (e.g. NSW, QLD and Victoria).

2. Property and Business Interruption Insurance
Property damage insurance covers damage to your business property, contents, equipment and stock. Business Interruption insurance, which is commonly only available in conjunction with property insurance, covers your business for loss of income or additional expenses incurred as a direct result of a property loss or damage claim.

3. Public & Products Liability Insurance
Covering your business for liability to third parties arising from claims alleging that your business operations or negligence resulted in their bodily injury or property damage. The policy covers legal expenses and any judgement or settlement payable.

Examples of claims could be a supplier being injured whilst on your premises, or one of your products causing property damage or bodily injury to a customer.

4. Professional Indemnity Insurance
If your business provides a professional service (e.g. engineering or design) or gives professional advice to others for a fee (e.g. accountants, lawyers and consultants), there is a chance that a failure in the delivery of that service or an error in the provision of that advice could lead to a claim against you by your clients or customers alleging that as a result of your actions or errors they have suffered some form of financial loss. This is what Professional Indemnity insurance covers (legal expenses and compensation).

5. Directors & Officers Liability (or Management Liability) Insurance
Insurance to protect your directors, executives and managers against claims made against them personally, in their capacity as directors, executives and managers in your business, by third parties (including claims by your own employees alleging employment-related grievances).

6. Cyber Insurance
The Australian Cyber Security Centre reports that a cybercrime is reported in Australia every 6 minutes! Cyber threats should not be ignored by any business.

Cyber insurance will cover your business for your own costs, your potential liability to third parties, and your potential loss of income, all arising out of a cyber event (such as a data breach or hack). It can also be extended to cover loss / theft of funds.

There may be other insurance policies that you should consider for your business. There may also be compulsory insurance policies you need to purchase due to your individual business circumstances or the industry you operate in.

For a full review of your risk and insurance requirements, GET IN TOUCH with a member of our team to schedule a time for a tailored risk review.

Author: Sophie Cooke