All your life this is what you have dreamt of: a business of your own without having to call someone your boss. Yes, you own your time, you can earn unlimited income, and you are the boss.
Yet you also know that having your own business has just as many risks – if not more – than rewards. As soon as your first day in your office you are already exposed to many perils. These perils, unfortunately, can completely wipe out your dreams in a jiffy.
The good news is, as a business owner like the owner of Insurance brokers in Perth, you have access to a great number of insurance types that can shield you from these dangers. If you are at a loss as to what kinds of insurance you should get, then read on.
Types of insurance your business needs
- Professional liability Insurance – Of course, we know that the reason you chose that line of business is because it is something you are good at more than the majority of the country’s population. But we are also only human, and prone to errors from time to time. Professional liability insurance, also known as Errors and Omissions (E&O) insurance, takes care of that. It covers your business against negligence claims caused by the harm that resulted from errors or being unable to achieve what is expected from you. There is no cookie cutter policy for this type of insurance; each industry has its own standards that ought to be addressed in a policy that is modified to suit the business’ needs. Additionally, this may be a requirement foy your business.
- Property Insurance – Business owners are required to get a property insurance. It does not matter whether you own the property or you are renting the space. This type of insurance covers furniture and equipment, plus inventory and even signages if ever a fire strikes, destruction due to a storm, or theft. Floods and earthquakes are not included, however, and may need a separate plan to cover these events.
- Worker’s compensation insurance – Unless you plan to work all by yourself, this is one type of business insurance policy you should have the moment you hire your very first employee. If you have this, your medical treatment, disability, and death benefits in the event an employee gets injured or dies while at work would be covered. If you think the job is safe and there is quite a low risk for injuries, think again. Your employee might slip or fall, and medical conditions like asthma, tuberculosis, and carpal tunnel may also result from exposure in a workplace. These may result in expensive claims, so you better be ready.
- Home-based business – Small businesses usually start their operations in their own homes, and once you decide to go this route, ask your insurance agent for additional insurance that would cover your equipment and inventory in case a problem arises. This is because your standard homeowner’s policy does not cover home-based businesses in the same way as a commercial property business does.
- Product liability insurance – Product liability insurance is a must if the businesses you set up involves manufacturing products for sale on the market. This is because no matter how much care you put in each product you manufacture, you may still find yourself involved in a lawsuit because of damage it may cause in the future. This type of insurance policy can be tailor fit to the type of product you have, and protects you from any such kind of lawsuits.
- Vehicle Insurance – This is certainly needed if vehicles would be used for the business. All vehicles used for your business must be fully insured to protect you and the business from any liability should an accident occur. You should get third party liability insurance should be at the very least, but it would be so much better if you get a comprehensive insurance policy for full protection. The vehicle itself would be protected in case it gets involved in an accident. If you have employees and they are using their own cars, they will be covered by their own personal insurance in case they get involved in an accident. However, coverage is excluded when the vehicle is delivering goods and services for a fee.
- Business interruption insurance – Your business’ operation would likely be interrupted once a natural disaster or catastrophic event happens. Surely, you would suffer from opportunity costs or income loss because you and your staff would not be able to work due to such dangerous conditions, after all, safety should be among your foremost priorities. Business interruption insurance is especially useful to businesses that have a physical location to do business, like retail stores. It compensates businesses for the opportunity costs in these events.
Protect your business, and yourself with these insurance policies and avoid major financial losses due to lawsuits and natural disasters. Check with your friendly insurance agent about the type of insurance that can be tailor-made for your business.