There is so much to consider when you’re starting a new business adventure. From designing a unique logo and website, to business branding, budget and risk management, setting up the right insurance cover is just a small, but essential, part of the bigger picture. Unfortunately though, it’s usually one of the last thoughts and investments we tend to make.
Getting caught up in all the fun aspects of the new journey is easy. But to keep your hard work safe and encourage a secure and successful future for your small business, you need to make sure you’re covered. And that involves investing in the right insurance and engaging with a specialist insurance broker to customise a policy to best suit your corporate needs. Here are the most important insurance covers any smart business owner should consider:
1. General Liability Insurance
Even if your business is home-based, liability insurance is vital in protecting against damages. A liability risk relates to your responsibility as the business owner, and your financial responsibility to your customers, the general public and staff. Every business, regardless of how small or the industry its in, is exposed to such damages. General liability insurance is also necessary for defence. If allegations were to be made against you or your business, the right liability insurance cover can help to protect you. This includes if your products/services caused injuries to anyone else or property damage.
2. Commercial Property Insurance
Often overlooked by commercial landlords, commercial property insurance protects your business property, including the equipment inside, against costly damages. This type of insurance is only beneficial if you are the owner of your office space.
With the right policy, property insurance can protect against natural disaster damage, break-ins, injury liability and tenant lawsuits, if you’re renting part of the space out to someone else. It also offers reimbursement to claim back rent for any time lost from fire or natural disaster damage. If you’re taking out this insurance cover, make sure to double check the exclusions. Some covers will exclude things like property maintenance or specific natural disasters. Discussing your policy needs with an insurance broker can help ensure you have the best property insurance for your corporate space.
3. Cyber Insurance
It’s near impossible these days to run a business without technology and the Internet. As handy as it is being so well-connected though, it comes with a multitude of online (cyber) risks to be wary of. Whether it’s keeping client and/or staff information safe or protecting your corporate computers, servers and systems, data breaches and cyber attacks are all to real. And it’s not usually something you’re prepared for unless you’ve been subjected to one before.
Studies have shown that small businesses are a big target for cyber attacks, because they’re considered easy targets. Thus, cyber insurance is essential in protecting you and your business against legal and liability costs, as well as the financial and repair costs should your system get destroyed, in the event of a cyber attack.
4. Workers’ Compensation Insurance
It doesn’t matter whether you have 2 people working for you or 200, it’s up to you to keep your employees safe. If you’re a sole business owner just starting out, workers’ compensation insurance may not be something you need to worry about until later. Eventually though, it will become one of the most vital covers for your business and one that’s a legal requirement in Australia. This level of insurance will protect against any staff who are injured on the job, including wage replacements, medical and legal costs. Injuries, regardless of how small, can put a lot of financial and physical strain on the lifeline of a small business. Workers’ compensation insurance will make sure you’re covered for the costs of keeping your staff looked after.
As a business owner, you expose yourself to certain risks from day one. You don’t need to have a lot of staff (or any) to be struck by a catastrophic event, become involved in a lawsuit or put your money, health and business at risk.
Author: Jayde Ferguson
Founder of Toward Music, Jayde is a scripturient with a consuming passion to write. With 12 years experience as a freelance music journalist, she’s also a dedicated writer in the business industry with an undying love for typewriters & street press.