Risk. Whether you’ve just started a business or you’re well established, at times you’ll need to take a risk in order to grow.
But, putting your personal assets and business future on the line by not insuring your assets and/or protecting yourself against potential liabilities, are risks that are not worth taking. Business risks can be a minefield and there are many different types of insurances available to offset them. That’s why it pays to get the right advice when it comes to insurance. According to Lumley Insurance’s National Portfolio Manager SME, Phil Heath, the only way to ensure you have all risk bases covered is by seeking advice from an insurance broker.
“An insurance broker will help you to identify your specific risks and recommend the most suitable insurance cover to meet your unique needs,” says Phil. “Brokers make navigating the insurance landscape easy and can save you considerable time and effort, not to mention money. “Best of all, you can sleep easy at night knowing your business is adequately protected in the event of a physical loss, such as theft or fire, or a liability claim, when someone trips on your premises, injures themselves and sues you for damages. “The cost of mounting a legal defence in that situation can be enough to send many small businesses to the wall in the absence of public liability insurance.”
Focus on business and let someone else handle the admin
Most businesses wouldn’t dream of putting in a tax return without the help of an accountant, so why put your assets at risk by not getting your insurance cover right? An insurance broker will help get your admin in place so that you can concentrate on what you do best: running your business. They’ll help you to:
- Identify and address your insurable risks
- Recommend a tailored insurance package designed for your specific needs
- Provide industry-specific advice and recommendations
- Source the right insurance policy for you at the right price
- Reassess your needs as circumstances change.
Four frequently asked questions about small business insurance
- As a small business, do I really need insurance?
Regardless of your size or industry, insurance is an essential part of managing risk. As a small business owner, the risks you face can be more far-reaching than that of larger organisations.Insurance protects you and your business for the long term. For example, if you are unwell and can’t work, you could put your personal assets at risk if you don’t have the right insurance to cover you until you get back on your feet. If your assets are destroyed in an accident, being able to recover your costs is essential if you’re to stay in business and continue trading. - What insurance is compulsory for my small business?
Some insurance classes are compulsory and you could be penalised heavily if you don’t have them. For example, NSW employers need to take out a workers compensation policy if your wages/salaries exceed $7,500 or $0 if you employ an apprentice/trainee.Likewise, third party personal injury insurance is compulsory for anyone who owns a motor vehicle. Speak to your insurance broker to find out what insurance classes are compulsory in your state, as well what covers are not mandatory but highly advisable. For example, if you are dealing with customers, then public liability insurance is a must as isprofessional indemnity insurance if you are providing advice. - Does my contents insurance cover my home office?
Working from home is a great way to save on overheads, but your existing home and contents insurance may not necessarily cover your business activities.For example, if you have clients visiting your premises, they might not be covered for accidents. And we don’t mean anything crazy. Even tripping over on a wet step at your front entrance could land you in hot water if you’re not adequately covered. If you don’t want to be held personally liable for other people’s injuries and put your hard earned income and assets at risk, check what insurance you need to protect your home office. - I work as a consultant: do I need insurance?
If you run your own consultancy business, you still have risk exposures and may potentially need some or all of the following types of insurance cover:- property (for computers and other tools of trade)
- workers compensation (in case you or your staff members are injured while at or travelling to/from work)
- public liability insurance (if clients or suppliers visit your premises)
- management liability (for employment-related exposures)
- motor and third party property insurance (for business vehicles)
- professional indemnity (if your consultancy provides advice)
- accident and sickness (in case you get sick or injure yourself away from work).
Remember, if your business is low risk than your premiums are likely to be low, too. Your insurance broker will help you determine which insurances are appropriate for your business needs.
Need to find an Insurance Broker near you? Use Lumley Insurance’s Broker Locator site. And speak to your Insurance Broker about the great range of business packages available from Lumley Insurance, one of Australia’s leading commercial insurers.
