Mitigating risk in business is a key factor in securing long-term success. This is where business insurance plays an important role. The right business insurance can protect your business from unexpected events and provide peace of mind, knowing that your business is covered. However, with so many different types of business insurance available, it can be difficult to know which ones you need. Here are some of the options to consider.
Workers’ compensation insurance
Workers’ compensation insurance is a system designed to provide financial support to employees who have suffered from work-related injuries or illnesses. In Australia, workers’ compensation insurance is mandatory for most employers. In most cases, workers’ compensation covers medical expenses, rehabilitation costs, and lost income due to time off work. The system operates on a “no-fault” basis, meaning that employees do not have to prove that their employer was at fault for their injuries or illness to receive compensation.
Each state and territory in Australia has its own workers’ compensation scheme, but they are all governed by national legislation. Employers are required to purchase workers’ compensation insurance from an approved provider, and the premiums are based on the level of risk associated with the job.
There are some exemptions to the mandatory workers’ compensation insurance requirement, such as for sole traders, some partnerships, and certain categories of volunteers. However, these exemptions vary by state and territory, and employers should seek advice to ensure they are complying with the relevant laws and regulations.
Public Liability Insurance
Public Liability insurance is designed to protect businesses from claims made against them for injury or property damage caused by their products or services, or at their site. This could include things like a customer slipping and falling in your store, damage caused by a faulty product, or injury caused by an employee while on the job. Public Liability insurance can provide coverage for legal costs, damages, and other costs associated with legal proceedings.
In Australia, public liability insurance is not mandatory for all businesses. However, many businesses choose to have this type of insurance as it can provide protection against unexpected events that could result in significant financial losses.
Professional Indemnity Insurance
Professional Indemnity insurance is designed to protect businesses that provide professional services or advice. It covers you in the event that a client suffers a loss as a result of your professional services or advice. This could include things like incorrect advice, negligent actions, or breach of professional duty. Professional Indemnity insurance can provide protection against legal costs, damages, and other costs associated with legal action.
In Australia, certain professions are required to have Professional Indemnity insurance, including lawyers, accountants, architects, and engineers. However, even if your business isn’t required to have PI insurance, it’s still a good idea to consider it. Any business that provides advice or services could be at risk of legal action, and PI insurance can help protect your business and reputation.
Cyber Insurance
Cyber insurance is a relatively new type of insurance that has become more important in recent years as businesses increasingly rely on technology. Cyber insurance provides protection against losses related to cyberattacks, such as data breaches, network failures, and cyber extortion. It can provide coverage for things like legal costs, data recovery expenses, and loss of income due to a cyber attack.
In Australia, businesses are not required to have cyber insurance, but it’s becoming increasingly important as cyber attacks become more common. Small businesses are particularly vulnerable to cyber attacks, as they may not have the same level of security measures in place as larger businesses.
Income Protection Insurance
Income Protection insurance is designed to provide financial protection to individuals who are unable to work due to illness or injury. While this isn’t strictly business insurance, anyone can get income protection insurance, it is especially important for business owners.
This type of insurance can provide a regular income for a specified period of time while you are unable to work, helping to cover expenses such as rent, mortgage payments, and other bills. Income Protection insurance can also provide coverage for medical expenses associated with the illness or injury.
In Australia, income protection insurance is not mandatory, but it’s a good idea to consider it if you are self-employed or own a small business. If you are unable to work due to illness or injury, income protection insurance can help ensure that you can continue to meet your financial obligations.
In summary
As a business owner, it’s important to have the right business insurance coverage in place to protect your business and yourself. Speak to your business advisor or insurance broker to assess which types of insurance you’ll need to ensure you’re covering all bases.
Looking to protect your business and yourself through business insurance? Contact us today to find out more.
At Keeping Company, we’re not just accountants, we’re business people too. With our counsel, your business can reach its full potential.
We have a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together and ready to help, contact us today.
For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.