Many small business owners imagine insurance to be an avoidable cost. They try to continue with their operations without an insurance cover; little do they know that this exposes their businesses to severe risks. A single lawsuit or accident could put them out of business.
The right insurance coverage will safeguard your business’s’ financial welfare and also give you a good night’s sleep. With so many business insurance providers and policies, choosing the right coverage for your entity may be a little daunting. Being well informed on various types available to you in Australia will simplify the task.
General liability cover is most popular among business owners. This kind of insurance protects your establishment in case anyone gets injured within its premises or by one of your deliverables. General insurance policies often have several exclusions to liability coverage. Therefore, ensure that you check your package thoroughly before paying for it.
Umbrella liability is another popularly used insurance type. It is used in addition to other forms of insurance, for instance, general liability coverage. As the same insinuates, umbrella liability functions to cover the gaps left by the others. It is especially ideal for complex businesses whose products pose an imminent threat to its users. This coverage protects you from winding up with large bills.
If your business owns a property, it is wise that this structure is covered with property/casualty insurance. Also, instead of covering specific perils or risks, you should take an all-inclusive risk package. The coverage that you choose should be adequate to rebuild your property at the current costs. The ideal policy ought to have an inflation guard for payout adjustment purposes.
Due to the halting effect that a power blackout, storm or even earthquake may have on your business, you should consider having business interruption insurance. Such occurrences can stall business operations for days, weeks and even months. And while your property insurance will compensate you for damaged property, it won’t consider sales lost as a result.
For companies with employees, a workers’ compensation plan is vital. This insurance covers health care bills and lost pay during medication for employees injured while at work. Your program should include employer liability coverage to cater for the families of employees you are permanently incapacitated or lose their lives on the job. Other crucial forms of insurance include disability insurance and life insurance.