Insurance is a must-have. In order to keep your business and yourself as a business-owner protected, it is essential to have the correct insurances in place. You may have asked yourself the question: does my business need workers comp insurance?
Key points to remember
- Insurance comes in a range of forms and may be bundled in a package to suit your needs.
- Your business can grow, adapt and change, which may require you to tailor your insurance to your business continually.
- There are types of compulsory insurance in Queensland that your business must have.
Why should I have insurance?
Insurance aims to protect and minimise a business’s exposure to risks, including those that are sometimes unavoidable or at the hands of others. For example, insurance will broadly cover the associated costs with property damage and liability claims. As a business owner, you are responsible for the well-being, health and safety of your customers, and more importantly, that of your employees.
If you wish to protect yourself, your business and your assets, while avoiding out-of-pocket expenses such as legal costs and damages – insurance is essential! We are sure your aim is to keep your business running and profitable, so insurance is essential to ensure your business stays afloat!
Is there anything to consider before taking out a policy?
Insurance can protect your business from fire, theft, damage and financial loss. Insurance can protect your business assets, customers, employers, business owners and your own earnings. Prior to purchasing specific insurance, the following aspects should be heavily considered:
- Evaluate the needs of your business
- Note that types of insurance can differ from business to business, and from person to person
- Determine the risks associated with your industry
- Understand the contents of the desired policy
- Consider the separate terms and conditions of each policy
- Be aware of the costs
- Check your individual requirements of the policy
- Don not consider one sole policy, instead you should shop around
Mandatory insurance in Queensland
When operating a business in Queensland, there are a range of mandatory insurances.
- Workers Compensation Insurance – if your business has employees, they are entitled to workers compensation on your behalf. This kind of insurance can mitigate these costs should a compensable event occur. Employees are entitled to first aid, compensation and rehabilitation to get them returned to work.
- Public Liability Insurance – also known as Comprehensive Third Party (CTP) protecting your business from third party death or injury. This can be engaged when your products or services may cause injury, death or property damage to another. This insurance is important even if working from home. Consider: Do you serve customers in a public place or at your premises? Do you make goods or provide services to the public? If so, you will need Public Liability Insurance.
- Third Party Personal Injury Insurance – this cover is compulsory if your business owns a motor vehicle/s.
Other recommended insurances
While the options above are compulsory, the options outlined below are highly recommended to ensure your business continues to run successfully without encountering costs or experiences which were not predicted.
- Professional Indemnity Insurance – protects your business against claims which arise from an act, omission or breach of your duty of care undertaken within your course of work. This is essential if providing a specialist service or advice. It can be a requirement in some professions and can assist in covering legal costs. Consider: Do you provide advice to others in a professional capacity?
- Cyber Liability Insurance – today within a digital world, technological issues are arising regularly. This type of insurance helps cover the costs associated with data breaches, hackers and the theft of client information. Consider: Do you have a website? Do you communicate with consumers via email?
- Tax Liability Insurance – more often than not, businesses are regularly subject to audits by the Australian Taxation Office (ATO). These audits can be expensive, time consuming and stressful for business owners. This insurance can cover the fees associated therein.
- Business Insurance – this type of insurance can usually be combined in a package, to cover for example building and contents, theft and burglary, money, glass, stock deterioration, equipment or machine breakdowns, computers and electronics, and employee fraud and dishonesty. Consider: do you have specific items or assets you need protected? (i.e machinery)
- Business Interruption Insurance – the normal running of your business can be easily interrupted. Take the COVID-19 pandemic for example. This insurance can protect your business when circumstances like a natural disaster or pandemic occur, protecting costs associated with operations and delays.
How do I purchase insurance?
There are a range of methods you can use to find the right insurance. You can attain insurance directly through an insurer, via a broker, by using an online comparison website or by retaining live agents.
Management tips after choosing insurance
Insurance must be managed effectively as your business grows and insurance requirements change. With growth, it is important to remember that policy premiums may change and you should regularly review your requirements. You should also be aware that in the event you need to make a claim, credible supporting evidence will be required. It is important to note an individual may also make a claim against you or your business and you will be required to dispute this.
I run my business from home, do I require insurance?
Yes! Even though you conduct your business activities out of your home and do not require an office space, that does not mean you can skip out on securing the right insurance. Your business risks are not protected by your normal home and contents insurance. You will still need the specific insurance outlined above though tailored to your industry and activities.
I am a sole trader, do I have different options for insurance?
There may be a few differences for sole traders. For example, if you do not have any employees you may not need workers compensation insurance. Instead, you may opt to engage with personal accident insurance, trauma insurance or income protection insurance.
How can we help?
Business Kitz has partnered with BizCover to ensure its customer gets the right insurance in place. Get a free quote for business insurance today to find the perfect insurance to suit your business needs, or check that your insurance is up to date and fully comprehensive for your business needs.