Working out what insurances you should consider as a small business can be a time consuming task, so to assist imar have summarised the 7 insurances small business need to consider to protect their business and themselves.
The 7 Insurances Small Business Need to Consider
- Business Pack Insurance
- Public and Product Liability Insurance
- Professional Indemnity Insurance
- Cyber Insurance
- Management Liability Insurance
- Commercial Motor Insurance
- Workers Compensation Insurance
Business pack insurance or ‘biz pack’ is a great starting place for small business as it combines 16 policies into one insurance package. It includes cover for property damage, theft, business interruption, employee dishonesty, public and product liability.
Public and product liability insurance provides protection against claims from 3rd parties, as result of an error or negligent from your business activity or product anywhere in Australia. In addition public and products liability insurance protects you from advertising liability from 3rd parties.
Professional indemnity insurance minimizes the risk against client claims when you provide professional advice for a fee. This might occur through negligence, error or omission and your client might take legal action to recover losses.
Cyber breaches are a growing concern for small businesses and a minor cyber security incident can have a devastating impact as your money, information and technology. Protection cyber insurance provides includes crisis management costs, extortion costs and business interruption costs.
Management liability insurance protects against any liability arising from any actual or alleged act, error or omission of any manager, director, officer or employee of the business. It covers claims made against the business as well as the owners or directors of the small business.
Commercial motor insurance designed to cover the costs due to theft and accidental damage by fire, flood, collision, overturning, hail and storm to vehicles used for commercial purposes. Comprehensive and 3rd party cover can be arranged for cars, van, utes, light trucks forklifts, bulldozers, tractors, bob cats, excavators, mini loaders, ride on mowers and heavier trucks.
Workers Compensation insurance is compulsory for businesses in Australia that protects your business from financial costs when an employee sustains a work-related injury or disease at work.
According to Business.gov.au, workers compensation, public liability and 3rd party commercial motor insurance are compulsory for small businesses in Australia. It then lists types of insurances which should be highly considered and they include business interruption, management liability, theft, property damage, tax audit, transit and product liability (all included in the Business Package). In addition it lists cyber insurance and professional indemnity insurance as types of insurance a small business should consider to protect their assets, earnings, customers, employees and owners.
To help set up your small business insurance, speak to our experienced insurance brokers on 1800 284 and press 1. They will find you the small business insurance policies that suits your needs quickly, in a straight forward manner.
You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.