What Business Insurance Policies Do You Need?

If you’re starting your own business, you’re taking a gamble on yourself. But one thing you don’t want to be gambling on when becoming your own boss is business insurance. 

A reliable insurance plan that protects you against the ups and downs of working for yourself is essential, not to mention that having the right types of insurance in place will ensure your business dramatically reduces its risk.

But keep in mind that when it comes to business insurance, one size doesn’t fit all. You’ll need to choose the right cover that’s appropriate to your business needs – depending on your business size, type, and industry.

The good news is there are a variety of policy options available and can be tailored to suit your specific requirements. Here’s some of the most important types of business insurance to keep your organisation up and running:

Professional Indemnity Insurance

In the business of providing advice or a service to clients? Then Professional Indemnity Insurance is a must. This policy can protect you from some unique risks your business faces when giving advice or providing a service, such as lawsuits.

If it’s found you made a mistake that caused injury, damage or financial loss to your client, you could face legal fees and damages. Professional Indemnity Insurance is designed to cover these costs and stop them from putting pressure on your business’s cash flow.

It's estimated that over the past 20 years, settlements from class action lawsuits in Australia against lawyers, financial advisors, accountants and other professionals, cost businesses a whopping $1 billion!

Public Liability Insurance

Public Liability Insurance protects you and your business if it’s shown your negligence led to someone being injured or having their property damaged. For example, if the floor in your shop is wet and a customer slips over and hurts themselves, or you’re cleaning a client’s house and you accidentally break a window, you’re liable.

Without Public Liability Insurance, legal bills and compensation for these claims could disrupt your cash flow or potentially ruin your business. So, whether you run an e-commerce website from your house, work on-site at your clients’ homes, or have a team and an office, Public Liability Insurance is helpful to help protect you from these unexpected costs.

Workers’ Compensation

Some forms of insurance are obligatory for businesses operating in Australia – workers’ compensation is one of them. The primary reason why it’s compulsory across the country is to protect the interests of employees should anything happen to them while they’re working for you.

For example, in South Australia the government requires employers to provide workers compensation through their approved insurer, guaranteeing access to health care, claims management, and financial support in the case of a workplace injury.

Business Interruption Insurance

Business interruption insurance is designed to protect your business against any financial loss caused by insured events like fire, flood and theft.

It ensures that the business can cover any lost profits and additional expenses during the length of the claim. For example, if a tree falls onto your store’s roof and you need to shut your doors while it’s being fixed, this insurance can cover the interruption costs to your business.

Asset Insurance

As the name suggests, asset insurance can cover your valuable company belongings such as vehicles, computers, machinery, and even cash. Depending on what type of capital your business has invested in, adding some form of asset insurance to your policy may be a wise business move.

If you’re in NSW, ACT, TAS, NT, WA, QLD or SA, NRMA Business Insurance can provide protection against any potential risks. You can have peace of mind knowing you’re not only protecting your employees and the public, but you’re also being business savvy by protecting what you’ve worked so hard for.