Here are 7 Insurance Policies Every New Business Should Consider
And MOST importantly, even though your business may start on day one, protecting it should start on day zero.
Starting a new business is exciting. You’ve invested time, money and probably more than a few sleepless nights getting everything ready for opening day.
Unfortunately, the risks facing your business don’t wait until you’ve been operating for six months.
Arranging the Commercial Insurance Tasmania businesses need should therefore be part of preparing to open your doors.
Exactly what cover you need will depend on what your business does, but here are seven types of insurance worth discussing with your insurance broker.
1. Public Liability Insurance
What happens if a customer slips and is injured on your premises, or your business activities accidentally cause damage to someone else’s property?
Public Liability Insurance can help protect your business against certain claims involving personal injury or property damage arising from your business activities.
For many businesses dealing directly with customers, suppliers or members of the public, it’s one of the first covers worth considering.
2. Commercial Property Insurance
You’ve probably invested considerably in getting your new business ready.
Depending on the policy and cover selected, Commercial Property Insurance can protect insured property such as buildings, contents, stock, equipment and other business assets against specified events.
Even a relatively small business can quickly accumulate thousands of dollars’ worth of equipment and stock that would be expensive to replace.
3. Professional Indemnity Insurance
If your business provides professional advice or services, an error or omission could potentially result in a financial loss for your client.
Professional Indemnity Insurance is designed to protect eligible businesses against certain claims arising from the professional services or advice they provide.
It won’t be relevant to every new business, but for many professional service providers it can be particularly important.
4. Cyber Insurance
You don’t need to be a large company to become a target for cybercrime.
If your new business uses email, accepts electronic payments, stores customer information or relies on computer systems, cyber risks can exist from your first day of operation.
Cyber Insurance can provide protection against certain costs and liabilities resulting from covered cyber incidents.
5. Workers’ Compensation Insurance
If you’re employing people, Workers’ Compensation Insurance needs to be addressed before they start work.
Tasmanian employers are generally required to maintain workers’ compensation insurance for their workers, subject to the applicable legislation and circumstances.
It’s not something to put on the “I’ll sort that out later” list once you’ve hired your first employee.
6. Product Liability Insurance
If your business manufactures, sells, supplies or distributes products, you should also consider the potential consequences if a product causes injury or property damage.
Product Liability Insurance can provide protection against certain claims associated with products supplied by your business.
Public and Product Liability cover are commonly provided together under business insurance arrangements, depending on the policy.
7. Business Interruption Insurance
You may have insured your premises, stock and equipment—but what happens to your income if an insured event prevents you from trading?
Business Interruption Insurance can help with certain financial losses and ongoing expenses following an insured interruption, subject to the terms and conditions of the policy.
As we discussed in our recent Business Interruption Insurance article, sometimes a business doesn’t even need to suffer direct physical damage to face a serious interruption.
One Business Doesn’t Need Every Insurance Available
These seven covers aren’t a shopping list, and a new business doesn’t automatically need seven separate insurance policies.
A bakery faces different risks from a building contractor. An accountant has different exposures from a retailer, and an online business may need very different protection from a café.
Other insurance—including Commercial Motor, Management Liability or specialised industry cover—may also be appropriate.
That’s where talking to an experienced insurance broker can make a difference.
At RSM Tasmania, we can take the time to understand your new business, identify the risks you may face and help you consider insurance appropriate to your circumstances.
You’ve put a lot into getting your new business ready for opening day.
Make sure that protecting it isn’t something you leave until day two.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
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