If you are just starting out your company, you are probably focused on the problems immediately in front of you: attracting customers, organising supply lines and paying off all of your bills. However, something that many small businesses in particular ignore is the importance of insurance when first starting out. With so many uncertainties moving forward in the Australian economy, business insurance has never been more important for any company, no matter how big or small. Here are three reasons why you should prioritise getting a specific business insurance plan to help you feel secure.
Perhaps the most important part of any business insurance package is the public liability that is provided. This ensures any customer or nearby pedestrian that is injured by something from your business will have their medical bills covered along with any additional payments that need to be made. While you might like to think you run a safe business, and you probably do take a lot of precautions to protect your customers, freak accidents can always happen. The last thing you want is to have to pay out an exorbitant amount for something that really could not have been foreseen or prevented. That is why public liability is so important, no matter how big your business.
Workers Compensation Insurance
Public liability generally only covers non-employees, which means that if something bad happens to one of your workers, they will not be able to apply for it. That means that you need an additional type of insurance, commonly known as workers compensation insurance. Workers compensation is a required type of insurance if you are an employer, but it is easier to organise it when it is bundled in your business insurance plan. That means you pay less for better value, while still protecting all your essential employees.
If something goes wrong with your service or one of your products, then repairing the damage or covering legal costs can be very difficult for small businesses. Business insurance will typically also include indemnity insurance, which protects you on this front as well. That means that if you go to court and lose, your insurer will back you up and cover the costs to an agreed amount. Always make sure what is and isn't covered with your indemnity clause just so you know exactly where your blind spots are as a business. All of these listed types of insurance are necessary on their own, which is why business insurance plans were invented as a one-size-fits-all approach to insurance.