There is an abundance of different types of insurance that can be useful for many businesses. But which one should be the number one priority for my small business?
What Makes a Small Business?
Generally a business is classed as ‘small’ if it has an aggregate turnover of under $10 million or employs fewer than 20 people. According to the ASBFEO, small businesses in Australia make up over 97% of total businesses.
Despite clearly making up the large majority of businesses in Australia, many small businesses are still currently underinsured. A QBE study in 2019 found that around 62% of Australian small businesses felt they did not have the right insurance.
So what is the right insurance?
Although different businesses will have different insurance needs, there is one type of insurance that is highly important for any small business.
Public and Products Liability
Barring compulsory insurance such as Worker’s Compensation, public and products liability insurance is possibly the most important cover for any small business to have. Public and products liability insurance can cover you for the following events:
- Personal Injury – when you are sued by a third party for a personal injury caused by your business, it will cover legal costs plus damages.
- Property Damage – it will cover the expenses for any third party claims for property loss, due to damage caused by your business.
- Legal Costs – provides any cover for defence costs and awarded sums
- Advertising Liability – any claims from a third party for defamation, invasion of privacy, misleading advertising, stolen ideas or unfair competition arising from your business.
It important to understand, there are limitations to all insurances and any claims are considered under the terms and conditions of the policy, including additional options you may select. Before, and upon acquiring any insurance, you should read all policy documents.
The high volume and possible severity of claims for public liability insurance make it one of the most sought after policies for any business. Running a small business can be highly stressful, ease your worries by making sure your business has the right insurance for when things go wrong.
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 public liability insurance:
- Call 1300 540 156 to speak to our dedicated tradie broker team
- Fill out our online Contact Our Experts form
- Go online and fill out the Quote form
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.
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 Policy Documents.