What Insurance Do You Need For Your Small Business?Stuart Taverner
Getting insurance for your small business might seem like a rainy day task – after all, you don’t start a business expecting things to go wrong – but if you do end up needing it, you’ll almost always wish you did it sooner. The good news is, there are different types of insurance for small business owners and insurance plans that can be tailored to their needs. Follow our guide below to find out more.
Workers Compensation and Third Party Personal Injury Insurance
As a business owner, it’s important to remember that you have certain responsibilities to your people. If you’re operating a business with employees in Australia, Workers Compensation Insurance and Third Party Personal Injury Insurance are required by law: work, health and safety laws have been designed to give workers access to first aid, workers compensation and rehabilitation in the event of an accident or illness occurring during work.
Workers Compensation Insurance is what you’ll most commonly encounter if a workplace-related accident happens. But, if you have a car (or multiple cars) for your business, Compulsory Third Party (CTP) insurance is also compulsory.
Public Liability Insurance
Also known as Business Liability Insurance (or sometimes Commercial Liability Insurance), Public Liability Insurance can protect you in the event that you are sued for personal injury or property damage caused by you – or your staff – while carrying out your business activities. It will cover the business for costs associated with a legal action and damages, such as for the injury or death of a third party, property loss or damage, or financial losses that occurred because of negligence.
Public Liability Insurance, while recommended for all industries, is compulsory in some – including engineering firms and businesses arranging public events.
Income Protection and Life Insurance
Any worker would be wise to consider Income Protection and Life Insurance, and the owners of small businesses are no exception. If becoming sick or injured leads to an inability to work, Income Protection can provide valuable financial support by covering part of what you would have previously earned monthly, or the income your business might have expected in an ordinary month. Similarly, Life Insurance for small business owners and employees covers what you might have previously expected to earn – only, it will become relevant in the events of terminal illness (with a lump sum of money going to you), or if you pass away (with the money going to your family).
Commercial Property Insurance
You could be out of business immediately if a fire occurred at your business premises, or if other property damage affected the building. If you have company premises – whether it’s your own home, or a separate property – it’s important you look into getting building and contents insurance. Depending on the policy you select, Commercial Property Insurance typically provides cover for damage sustained to a structure itself, as well as the contents inside.