What insurance do I need as a small business?
As a small business grows and becomes more complex business owners and operators start to identify more risks and potential pitfalls which need to be insured. Many small business owners go without adequate insurance for too long without realising exactly what they need. Another common scenario is for a business owner to take out an insurance product which doesn't actually fully cover their business as needed, then when they need to claim they find they can't.
Key Insurance types for small businesses
The type of insurance a business needs depends largely on what the business does, the extent of interaction with the public and the level of risk. There are many insurance loopholes and details to be aware of, so researching and talking to an expert is essential to ensure all bases are covered in a business. Below is a quick overview of the key insurance types for small and medium-sized businesses.
Professional Indemnity Insurance
For professionals who provide advice and services to customers Professional Indemnity Insurance protects against legal costs and claims for damages to third parties resulting from an act, omission or breach of professional duty. It is intended to help protect assets and reputation in the event a customer takes legal action to recover losses resulting from mistakes or omissions made by partners, employees and even volunteers of businesses they work with. Many consultants such as marketers opt for this insurance, as the potential costs of legal disputes can get very high. Many companies request this insurance type of their contractors and freelancers.
Public & Product Liability Insurance
For businesses of all kinds including sole traders Whatever your business or line of work, there is always the potential for others to suffer injury, damage or loss, or even allege they have. Legal costs from Public & Product Liability claims can be extremely high, even when you are not at fault. Public & Product Liability insurance covers you and your business for personal injury and property damage suffered by a customer or member of the public as a result of your business activities. This insurance type is increasingly a mandatory requirement for businesses to be able to trade with other businesses, occupy their premises, hire venues and appear at markets and trade fairs.
For any business working with customer information or data Cyber Insurance should be considered by any company that electronically stores and transmits critical data and private information such as employee profiles, credit information, client lists and demographic information, budgets and marketing plans. Contrary to the beliefs of many, cyber insurance is not just for companies with large or complex websites or tech-based businesses. Cyber Insurance essentially covers for data leaks and losses, whether they are from computer hacking, virus infection or inadvertent transmission, employee error, and more.
Tailored insurance options
One of the advantages of working with a broker is that they offer insurance packages tailored to particular needs and business types.
Do I really need insurance?
As businesses grow so do the risks. It's tempting to see insurance as a ‚Äònice to have' and many business owners assume the worst will never happen to them. But claims are common for small businesses and the cost of cover can be surprisingly reasonable in comparison to the costs covered.
Why use an insurance broker vs going direct online?
As explained above, not only does working with a broker open up the possibility of tailored insurance options for your specific needs, it also helps ensure businesses aren't left open to risk. A broker will know what's necessary for a specific business type and situation. The experts at ii-A offer 360 support from insuring to claiming. Chat with us today.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Polina Kesov.