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What type of insurance cover do I need for my business?

July 17, 2015

Starting a new business is an exciting time. Depending on the size and scope of your operation, it can also be overwhelming. We’ve taken a moment to simplify one part of the equation – insurance.

Many business owners do not realise that some kinds of insurances are required under Australian law in specific circumstances.

These include:

1. Workers compensation insurance – if you employ people, they must be covered in case of sickness or an accident on the job.
2. Third party personal injury insurance –  in certain states, everyone who owns a motor vehicle must have this kind of insurance. (It is usually included in your rego fee)
3. Public liability insurance – depending on the kind of company you operate.

Get covered right

If you want complete peace of mind, then we recommend taking out the following insurance policies for your business. A good insurance broker should, at the very least, recommend your business be covered by the insurances listed below.

1. Business Insurance Package – this includes cover for Property, Business Interruption, Burglary, Money, Public Liability, Machinery or Electronic breakdown.
2. Workers Compensation – requirements for worker’s comp differs between states, so speak with your broker about what applies to you.
3. Management Liability – protects Directors and other officers against the risks of managing a business. This is vital, as in some cases; Directors may be held personally liable. (Yes, that means your personal assets may be compromised.)
4. Motor Vehicle Insurance – protects business vehicles against theft, accidents and other damage.

Why bother with insurance?

The Australian Small Business Commissioner recommends business owners protect themselves and their business from potential risk by covering their assets, revenue and liabilities.

If you’re like many business owners in Australia, the buck stops with you. If you’re sick, the business may reduce output, or stop operating completely, which not only harms your immediate income flow, but also long term profits within the business.

An accidental slip on a factory floor or an unlucky case of food poisoning at a restaurant could result in litigation and damages that could cause your business to go bankrupt. Unfortunately, these examples are not uncommon.

Avoiding these kinds of major setbacks is as simple as taking out the right kind of insurance cover for your business. We’ve divided up the insurances we recommend you hold, if you’re going into business in Australia.

Of course, your cover should ideally be tailored to the size and scope of your operation. A good insurance broker can help you do this.

For more information about getting the right insurance for your business, contact Trident Insurance Group.

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