Small Business Insurance for Small Business

Insurance for Small Business must be considered when starting or buying a small business. There are a number of different types of insurance with some insurances compulsory, some considered essential and some worth considering. Every small business is different so it is important to contact Melbourne Insurance Brokers so that we can tailor a policy to suit your small business.

Please see below some common question in regards to Small Business Insurance (answers provided by Small Business Victoria):

Why take out insurance for your small business?

Running a business is risky, and often involves putting your own finances at risk. Trying to work out what insurance you need when starting out or even afterwards is difficult. However, running a business with basic insurance is a smart way to manage the risks and reduce uncertainty.

Should I use an insurance broker?

Insurance brokers are professional insurance experts who will represent your interests if you have to make a claim. This contrasts with an insurance company or insurance agent who may act in their own interests or those of the insurance company. The more insurance companies your broker has access to, the more likely it is they can offer you an effective policy at the best price.

What to insure and for how much?

If you're starting out, working out what to insure against before you've even made a profit is hard. Will you insure for every possible risk, or just the most likely? Which are more likely in your business? How much cover do you need? If you over-insure you waste money, and if you under-insure and then make a claim, the insurance company can reduce what they will pay you.

What is 'under-insurance'?

When you take out a policy for a certain amount of cover, and it's less than the value of what's being insured, the insurance company can (legally) reduce what it pays you for any claim, including small claims. Insurance companies use different ways to work out how much they'll reduce a claim by if you're under-insured. Check your policy for details.

What insurance do I need by law?

If you employ staff, by law your business needs WorkSafe Injury Insurance in case they're injured. If you're an employee of your own incorporated company, you'll need WorkSafe Injury Insurance to cover yourself. If you're a sole trader or in a partnership, you're not eligible for WorkSafe Injury Insurance, so a wise move is to get sickness and accident insurance. Sole traders and partnerships should also consider income-protection insurance. Even though not legally required, operating without a public liability insurance policy for the business is not recommended.

Can you tailor a policy to suit your business?

Insurance policies can be changed to suit your needs. If a policy doesn't cover a particular risk in your business, you can ask to have a separate clause added to the policy. To save money and avoid buying policies you don't need, consult with an insurance broker or get quotes from several insurance companies.

Is packaging several policies together generally cheaper?

Try to buy your insurance from a company normally offering business insurance instead of one selling mainly domestic insurance. Combined types of insurance (small business 'packs') are available. Some examples of these are commercial, shop, retail, industrial, office, trades, and business vehicle insurance.

Source: Small Business Victoria