Essential Insurance Policies for Every Business Owner's Protection

Types of Insurance Policies Every Business Owner Should Consider

What insurance policies are essential for business owners to consider?

⚠️The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Protecting business investment with insurance is a critical part of every sensible business owner's business plan. Insurance protects businesses from unexpected financial risks due to natural disasters, accidents, liabilities and losses, which may run in to thousands.

Here are some insurance policies every business owner should consider to protect his investment as well as to ensure smooth running of his business.

Liability insurance

Business liability insurance covers the compensations and legal hassles resulted from the accidents, injuries, damage and loss caused by the business to third parties. There are three major types of liability insurance:

Public liability insurance

Business Insurance Renewal Due?

If you are in the process of renewing your business, public liability or professional indemnity insurance ... whether it be a professional, trade, manufacturing or retail business ... we can show you a quick way through the maze of offers and options available on the market. Our Australia-wide broker panel will ensure that you get the best cover for your specific needs - and at the right price to suit your budget.

... compare business insurance ...

Public liability insurance protects your business against financial risk of being found liable for death, injury, loss or damage of property caused to the third party due to your negligence.

For example, if a customer slips and falls due to wet floor at your business premises and gets injured, he may sue you and claim for compensation.

Public liability insurance helps you during this kind of situations by taking care of legal and medical costs.
Product liability insurance

If your business involves in manufacturing, selling, or supplying goods, you should consider product liability insurance.

It protects your business against financial loss as result of defective product that causes injury or bodily harm to the customer.
Employers' liability insurance

As a business owner, you are responsible for the health and safety of your employees while they are at work.

An employee being injured while on the job, can file a compensation claiming that he should be given medical help and wage replacement while in recovery.

This insurance protects you from the liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.

Professional indemnity insurance

Professional indemnity insurance is a special type of liability coverage for professionals like accountants, architects, engineers, lawyers, insurance brokers and financial advisers.

In case of any faulty advice/service rendered by these professionals that causes damage to the client, the professionals are legally liable to pay compensation, if the client sues them. Having this particular policy, can help you face these legalities as well as the monetary claims.

For example, a patient may sue a physician for faulty diagnosis or improper treatment.

Business assets insurance

Business assets insurance covers the business assets such as buildings, premises, equipment, vehicles, stocks, and contents against losses arising from theft, fire, flood, natural disasters or other damages.

It provides financial assistance to rebuild or repair business property so that operations continue with as little disruption as possible.

Business interruption insurance

Your business operations may be interrupted due to sudden damage caused by natural disasters or any other accidents.

As it takes time to restore your business operations and generate profits, having business interruption insurance will offer cover for the loss of income, continuing fixed costs and other expenses associated with closure of your business.

Personal insurance

As a business owner, you should take a personal insurance policy as you are the key person in the business.

Personal insurance policy covers you against the risk of death, injury, accident or illness.

It provides income replacement, creates liquidity to pay-off debts and estate taxes on behalf of you.

Having known the different types of insurance policies and their benefits, you can either opt for selected policies or a comprehensive business insurance cover, which is customized as per your business needs. Select an appropriate insurance coverage and protect your business.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori

Business Insurance Articles

Key Benefits of Comparing Public Liability Insurance Rates for Australian Businesses

As an Australian business owner, you face numerous financial risks daily. Accidents can happen at any time, whether it's a slip and fall on your premises or damage caused by your products or services. These incidents can lead to costly legal actions that may put significant strain on your business finances. - read more

Public Liability Insurance Claims: What to Expect and How to Prepare

Public liability insurance is a type of insurance policy that provides coverage for businesses and individuals against claims made by third parties for injuries or damages sustained while on their property or as a result of their activities. - read more

Reducing Your Risks: Public Liability Coverage Tips for Trade Professionals

For tradesmen and trade professionals, venturing into the world of business comes with its set of challenges and risks. Among the myriad of precautions to consider, one critical safeguard stands out for its ability to protect both the tradesperson and their clients: Public Liability Insurance. This form of coverage is not just a safety net; it is a cornerstone of a responsible business practice within the trade industry. - read more

Insurance Essentials: Protecting Your Small Business with Public Liability Coverage

Running a small business in Australia comes with its own set of challenges and risks. One crucial aspect that should never be overlooked is insurance, particularly public liability insurance. The reason is simple: it offers essential protection against claims of property damage or personal injury caused by your business operations. - read more

Decoding Public Liability Insurance: Is It a Must-Have for Your Australian Startup?

Public liability insurance is an integral safety net designed to protect businesses from the financial risks associated with lawsuits or claims. It provides coverage when a business is found legally responsible for personal injury to a third party or damage to their property. This form of insurance can significantly reduce the burden of legal fees, compensation claims, and other associated costs that may arise from unforeseen incidents. - read more

Insurance News