For small businesses and tradies, one of the best decisions you can make to protect your business is to get insurance coverage. However, there are different kinds of insurance just as there are also different kinds of businesses. Thus, the insurance needs of a restaurant or a coffee shop differ from those of an electrician. Still, there are some kinds of insurance that small businesses should prioritise.
Here are just a few that you should immediately get if you aren’t already covered
Public Liability Insurance
When it comes to public liability insurance, Australia-based businesses shouldn’t think twice. This goes for both big and small enterprises. In fact, even home-based businesses should consider getting a policy as soon as they launch. Public liability insurance offers protection from financial risks caused by property damage or personal injury to third parties in the process of operating your business. These third parties could be customers, visitors, or business partners. With public liability insurance, you don’t have to worry about out-of-pocket expenses. Moreover, public liability insurance covers not just compensation for the third parties, but also your defence (should it come to that).
Do note that public liability insurance doesn’t cover your own injuries. You should get a personal accident and illness coverage for this.
Workers Compensation Insurance
If personal accident and illness insurance coverage is for you as the business owner, then workers compensation insurance is for your employees. All businesses are required to provide this insurance, even if you just have one employee working with you. Workers compensation insurance or “workers comp” ensures that employees will receive proper treatment and compensation should they get injured or sick while working. This type of insurance also covers rehabilitation expenses like physical therapy.
Business insurance is often offered as a package, but it usually covers the cost of liability and property damage claims. It can also replace lost income should your business close due to certain circumstances. What you have to remember is that you can tailor-fit the inclusions of your BOP or business owner’s policy depending on your needs. This way, you don’t have to pay for premiums for coverages that you likely won’t be using. You may also “bundle” your business’s public liability insurance with your business insurance.
Among the most common inclusions in a business insurance policy is commercial auto insurance. This will help cover you and your employees in case of an accident while driving your car for work purposes. You can also choose to get a commercial auto insurance policy that covers third-party property, third-party fire, or theft.
There are many more types of coverage that you can include in your BOP, including professional indemnity insurance and business interruption insurance. These two will be discussed more in detail below.
Professional Indemnity Insurance
Does your business involve providing any service or advice to customers? You should definitely get professional indemnity insurance coverage. This protects you against liability for damages and covers the costs of your defence against third-party claims of losses. These losses could be due to acts of negligence, breach of duty, or omission on your part. Moreover, such losses include financial losses, damage to property, and physical injury. As earlier mentioned, professional indemnity insurance can be included in your business insurance’s BOP. It’s important to get this coverage because public liability insurance doesn’t provide the same coverage.
Professional indemnity insurance is the best option for professionals such as accountants, engineers, architects, plumbers, and the like. In fact, most industries require that professionals have a professional indemnity policy first before they can render any services.
What happens if a natural calamity or emergencies strike your business? It’s likely that you would lose income as you make repairs (or rebuild, as the case may be). A business interruption insurance is the best protection for this scenario. This provides you with coverage for lost income, along with increased expenses incurred while running your business even through insured interruptions. Just as professional indemnity is not covered by public liability, business interruption isn’t covered by standard business insurance. Make sure to include business interruption in your BOP.
There are many more types of insurance that you can get as a business owner, like management liability, cyber liability, tax audit, and even theft insurance. It would be good if you could pay for them all, but this simply isn’t possible for most small businesses and self-employed professionals. The key is to do thorough research so that you can get the best types of insurance for your business at the right price.
If you need clarifications about certain provisions, don’t hesitate to ask providers like All Trades Cover. They will be more than happy to answer your questions and ensure that you get the right protection. With the right type/s of insurance in place, you can protect yourself from losses and even preserve your business reputation.