Whether you’re in construction or martial arts, making sure your small business is covered for unforeseen events is of the utmost importance.
What’s Considered a Small Business?
Although various governing bodies and professions have different definitions, the business is generally considered ‘small’ if it has an aggregated turnover under $10 million or employs fewer than 20 people.
There is a significant number of businesses in Australia that fall in this category. In fact, small businesses make up 97.5% of Australian businesses according to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), with construction having the highest number of small business employees in June 2021.
The 4 Types of Insurance Every Small Business Should Consider
It can be hard for small businesses to know what insurances they need. Some are mandated by law, such as Worker’s compensation insurance, but what else should you consider?
Here are the four other important insurance policies every small business should consider.
- Public and Product Liability
One of the first types of insurance you should consider getting is Public and Product Liability insurance. It will cover you for most claims made by a third party for an error or negligence of your business or product, as well as any legal costs you may incur.
It can also cover you for advertising liability, which are claims from a third party for defamation, misleading advertisement, infringement of copyright, invasion of privacy and unfair competition arising out of your small business.
- Professional Indemnity Insurance
Usually going hand in hand with public liability for those that offer professional advice, Professional Indemnity insurance protects the business for loss allegedly caused by negligent, or erroneous advice.
If your small business provides professional advice to clients, it is highly recommended you consider getting professional indemnity insurance, though is often required by relevant Industry codes.
- Business Pack Insurance
One of the more comprehensive covers available, Business Pack insurance covers 16 types of insurance under one policy. The policy is designed to cover not only public and product liability, but also many of the most common claim events a small business may experience. We also know that no two small businesses are the same, so tailored cover is available.
- Cyber Insurance
Although a relatively new cover, Cyber insurance is becoming more and more important for small businesses with a significant rise in cyber-attacks in recent years. Currently only around 20% of small businesses have standalone cyber insurance, although the majority of SME’s are at risk of cyber security incidents.
As always, your insurance is up to you. For great insurance and peace of mind, give us a call.
Let’s talk! There are 3 easy ways to get a quote for small business insurance:
- Call 1300 540 156 and press 1 to speak to our dedicated tradie broker team
- Fill out our online Contact Our Experts form
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Disclaimer: 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.
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General Advice warning: To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation, and is considered general in nature only. You should seek legal or other professional advice before acting or relying on any of the Content. All insurance policies contain exclusions of cover, and no claim is guaranteed. Refer to the Product Disclosure Statement.