Do you own a small business?
After recently presenting at the Small Business Centre, it came to my attention that a lot of owners are a little lost in regards to what they should arrange cover for and are unsure of what insurance covers are available to them. Based on this, I have detailed below some of the covers that are available. Insurance does need to be tailored to each individual business and I would recommend that you speak with an authorised broker to determine your specific needs.
This is the only insurance policy that is a legislative requirement and it must be in place when employing a worker as defined by the Workers Compensation and Injury Act 1981 (The Act)*. This policy covers the worker for injuries that occur in the course of their employment. Cover does not extend to accidents that occur to and from work - a Journey policy can be arranged to cover this gap. The workers compensation policy is designed to cover loss of wages, medical expenses and common law up to a capped amount within the Workers Compensation Act. These amounts are updated every year. The current maximum benefit is $217,970 excluding any Common Law benefits the worker may be entitled to. The maximum weekly payment is $2,661 - if you have a worker that exceeds this amount we can set up a Workers Compensation Top Up policy to cover the rest of their wages. If you think you are likely to employ someone throughout the year (either casually or permanently) I would recommend setting up a minimum premium policy to give you peace of mind that the employee(s) will already be covered. Workers Compensation is an annually adjustable policy, which means that you estimate an amount of wages at the start of the period and then you advise the actual amount paid at the end and receive a credit or extra premium to pay based on the original estimate (less the minimum premium payable). The premium amount is worked out based on your industry rate which is determined by WorkCover. Discounts or loadings can be applied to this rate by the Insurer based on your claims history and type of industry. *all references are based on the Western Australian Act and the limits will vary per state
This policy ensures that if you are deemed negligent in an incident involving a member of the public that you will be covered. For example if a person was to fall over a box in your shop or an item that you installed was to damage someone's property.
Personal Accident/Illness and Income Protection
As a small business owner your main asset is yourself. Ensure that if you can not trade due to an injury or accident that your income is adequately protected and you do not need to close the business. You have the option under the Personal Accident policy to pay either yourself as the injured person or use the payments received to pay another person who will continue to run your business in your absence.
This will need to be discussed on an individual needs case but the main covers that a small business owner will require are stock and contents, glass and business interruption cover (loss of income). The policy is designed to cover things such as fire, storm damage, malicious damage, impact damage and theft to your stock and contents. The policy can also cover customers' goods that you are working on, fusion to motors, breakdown of electronic equipment.
This policy is designed to cover the business for a multitude of incidents relating to corporate governance including (but not limited to) libel and slander, regulatory investigations or enquiries, unfair dismissal, harassment or discrimination and theft by employees. For more information and a tailored quote on cyber insurance please contact Clare Smith, cyber insurance specialist. General Advice Warning The information on this website is general advice only and does not take into account your personal circumstances, financial situation or needs. Please connect with an insurance broker to discuss your specific needs.