Insurance: Insider Tips and Facts

What Sort Of Insurance Policies Do Businesses Need Today?

17 January 2020 by Brian Dunn

If you are considering starting up in business or are thinking about expanding your part-time enterprise into something more serious, then there are plenty of exciting opportunities for you in Australia. That said, there are often costs to consider that you might not yet have realised will need to be met as an entrepreneur. Don't let these things hold you back. For example, insuring your business properly is often much less expensive than you might have thought. What sort of insurance do you need when running your own businesses and—perhaps more importantly—which ones can you forego?

Public Liability Insurance

This sort of business insurance is a must if you provide services to members of the public. This means business-to-business enterprises won't need it. It applies when you use your own premises or public spaces to render services rather than the homes of clients, for example. It covers you for accidents and injuries that may occur.

Product Liability Insurance

You need this sort of business insurance if you manufacture or assemble products for resale. It applies whether you sell to wholesalers, the public directly or to retailers. Without it, you could be operating illegally.

Professional Indemnity Insurance

Not all professions require indemnity insurance, but many do. Civil engineers, medical practitioners, lawyers and surveyors will all be covered from incidents that occur as a result of their advice. Importantly, it usually covers you even once you have left the profession or retired.

Employee Insurance

If you are a sole trader or work with a partner, then you won't need this sort of business insurance. As soon as there is someone on the payroll, however, it is essential. It'll cover your business for things like worker compensation schemes and losses due to staff fraud.

Commercial Vehicle Insurance

If you drive to and from work as a self-employed person, then your travel may already be covered. As soon as you start to use your car for work, such as doing deliveries, then it is likely you'll have to upgrade to commercial vehicle cover. Check with your current insurer.

Internet Liability Insurance

If you conduct business online, such as taking orders over the internet, then this form of business insurance is expected. Not only does it cover you for fraudulent activity on the web, but it will payout in the event of certain types of cyber threat, such as data breaches caused by people hacking into your customer database.

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