Businesses come in all shapes, sizes, industries, and locations. This means there's no one size fits all when it comes to protecting your company against risks that might be incurred through accidents or disasters on-premises as well as off-premises. Think weather related events like fire damage and floods, or cybercrime online, even third-party advice risks through your usual business practice. It can be difficult figuring out which type will best suit you, so it’s important that you speak with an experienced professional who knows their stuff about what each option offers, specifically tailored for different circumstances, before making any final decisions. Don't get caught without adequate protection, because if something does happen, they'll know exactly where fault lies...
Insurance coverage for your business may vary depending on the type and size. A carpenter will have unique risks that aren't necessarily applicable when running a restaurant; similarly, someone who works in the food industry might have completely different risks to someone running a construction company!
There are a variety of types of business insurance depending on the type you want to protect yourself with. Some options may be compulsory and required by legislation while others relate directly from contracts you enter e.g., landlord or customer agreements.
Public Liability Insurance is the most common form of business insurance. It covers you from any liabilities to third parties, including liabilities that your employees might expose third parties to. Examples include a customer tripping on a hazard in your shop and spraining their ankle or where a removalist damages customer’s belongings when loading them onto trucks.
The risk of a public liability claim can be daunting for any business. The cost to fix the problem and cover legal defence could leave some with hundreds of thousands in damages or even force them out of operation if they fail to get enough insurance
Public Liability Insurance is not just limited to compensation but extends past this, also providing protection against potential costs like damages lawsuits where an individual has been negatively impacted by your company's negligence. This can pressure small businesses in Australia because if you fail to have the correct level of cover, it could expose you to potentially hundreds of thousands of dollars in costs / damages and even put a small business out of business.
Professional Indemnity Insurance protects professionals against claims of negligence or breach of duty made by a client as a result of receiving professional advice or services from your business. Who needs professional indemnity? Lawyers, accountants, architects, marketing specialists and engineers are a few of the professionals where Indemnity Insurance can apply.
If an allegation is made by a client of financial loss caused by advice they received from your business, they may take legal action to recover those losses. Indemnity insurance covers:
· Mistakes made
· Facts misstated
· Alleged negligence
· Breach of duty
· Oversite of important information
· Misinterpretation
You may think “it won’t happen to me” but legal action often arises from an unforeseen event. Regardless of the validity of the allegation, Indemnity Insurance seeks to protect your assets, reputation and financials should this occur. This will allow you the freedom to resume business operations without the stress of financial or reputational ruin.
Starting a business is challenging and stressful. This can make it difficult to know which cover you need, but luckily, we've got your back! Business Insurance protects from physical damage that may occur as the result of unexpected events such as fire or theft- not just general property insurance like most people think about when thinking "business".
Business insurance is generally a package deal with a range of options. These options include but not limited to general property insurance, fire and theft, contents and glass, as well as portable insurance of valuables such as phones and laptops. In some instances, you may include your Public Liability as a bundle with your package.
Business Interruption Insurance can cover the loss of sales while your business is out of action. The interruption can be short or long term. From a burst water pipe to a fire, events like this can cause you to start from scratch. This insurance also covers any additional costs incurred to stay open.
These include but is not limited to:
· Relocating costs for moving and operating from a temporary location;
· Closure of your business premises due to government-ordered street closure or curfew. (If you have any questions as to whether you have business interruption cover or if you can make a business interruption claim due to COVID 19, please contact your broker or insurer. As each policy and claim is different, an assessment and determination of your claim will be based on the specific wording and terms of your policy);
· Training costs for operators of replacement machinery; and
· Damage to a supplier’s premises which has a negative flow on effect for your business operations.
It is important to remember there are always exclusions. There is often a deductible excess and limit for cover so make sure to check always with your insurer, or insurance broker.
In our world today, the only constant is the ever-changing nature of our environment. The new digital age is an integral part of the world being forged. Cybercrime costs Australian businesses $1 billion annually – yet it remains one of the least insured areas of policy. Cyber security in a digital era has never been more important. If you have a website or your business stores sensitive customer information, you should consider holding a Cyber Liability policy.
Cyber Liability Insurance protects your business in the event of a cyber-attack. It is designed to help protect you from claims and support you if you encounter a leak of sensitive data and client information. The costs of repairing the damage and the legal costs associated with a data breach can have a significant impact on your business, not to mention the damage it can cause to your reputation.
Here is a list of some area covered by a Cyber Liability Insurance policy:
· Loss of customer personal information;
· Cybercrime;
· Business Interruption; and
· Cyberextortion / ransomware.
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
