Business insurance helps to protect your business from financial difficulties, business termination, or any other financial difficulties you may experience while operating your business. Your business can be affected not only by the current economy, but you also have to take into account natural disasters, burglary, and cyber-attacks.
There are many types of insurance covering specific losses, protecting an industry or insurance that is tailored specifically for your business. Fortunately, a good insurance plan can help you recover your losses and get back on your feet.
What is business insurance
Currently, there are over 2 million businesses registered in Australia and there is a great demand for business insurance. Whether you are insuring your business for natural disasters, theft, or protecting your employees it is always important to invest in good insurance that will protect your business from different risks. Most of the insurance policies are not mandatory although in Australia employers are responsible for their employees and they are obligated to have a third party insurer in case of accidents and injuries on the job site. the responsible business owners will make sure that their staff, as well as premises and equipment, are protected in case of an emergency. Whether you are a small company employing only one employee or running a team of 20 you should always assess your risks and make sure your business will not suffer any losses.
Types of business insurance in Australia
As a business owner, you are responsible for your employees, clients using your service, company premises as well as equipment and tools used to operate your business.
Public liability insurance will cover those who are injured on your company premises while using your service.
Product liability insurance covers damage or injury sustained by using your product or service.
Management liability insurance provides cover from those who seek legal action against your business.
Property insurance protects the company premises as well as equipment and inventory in it.
Workers’ compensation insurance covers medical treatment, disability, and death benefits or treatment, and compensation for any injuries occurred while working on the premises.
Home-based business insurance protects your property, equipment, and inventory.
Vehicle insurance should be purchased by those businesses that plan to provide delivery services or transport their employees or products.
Business interruption insurance will cover losses encountered due to – economic situation, natural disasters, water and fire damage, supply shortages, and equipment breakdowns.
What does business insurance cover
Business insurance will generally protect your assets, employees, company premises, equipment, and inventory. No business is the same and every insurance plan is designed for the specific business.
Whether you need to cover the building where you operate your business, protect your equipment, IT system, or your employees, there is an insurance plan for just about everything.
As Australia recently has been an epicenter for natural disasters many businesses have been able to cover their losses because of good insurance that is specifically designed for floods and fire damages. These natural disasters will not only put your business on a standstill it can also destroy your business premises, equipment, and even injure your staff.
A good and well thought out insurance plan will save you from major financial losses and help your business recover so you can get back to work as soon as possible.
How much is business insurance in Australia
Having your own business will always come with a price, no business or insurance policy is the same. Insurance companies will create a unique plan that suits your business and this will also come with a unique price. Insurance fees will be calculated after assessing risks, historical trends and other factors. Every business will choose to cover at least the basics – property, liability, and workers compensation resulting in a $1000 fee for small businesses to $3000 for additional coverage plans.
Although public liability insurance is not mandatory in Australia it is essential in order to run a business. Public liability insurance can cost from $50-100 a month although some businesses pay up to $250. This fee will differ to industry and service provided, the higher risk your business or service is to the public the higher the fee. This fee will also depend on the size of your business and number of employees.