Many businesses purchase different types of insurance, but there are a number of questions which can help you determine which policy is right for you. Comprehensively protecting your business is undoubtedly important, however there may be instances where your policy isn’t a true reflection of where your business’s risks lie. In this article, we’ll outline a number of questions to ask yourself when looking for the right business insurance.
1. What risks do I want to minimise?
Consider what your business does and what products or services you provide to your customers. Do you run your business from a public store or office? Or do you work remotely? If you run your business from home and you don’t have customers or suppliers coming to you, public liability insurance* might not be a primary consideration. Conversely, if customers attend your business’s premises, then having public liability insurance is likely to be a more important coverage to consider. Other areas you should consider include:
- The nature of your business and whether you provide professional advice or services
- Whether you hire employees and the nature of their roles
- The equipment your business uses
- How your business would be affected by a natural disaster or robbery
Once you know where your risks lie, you’ll be able to identify what it is that you want to protect. For example, you might want to look into contents* cover if you’ve spent thousands of dollars on top-notch computers in your office and want protection if they were to be damaged or stolen.
2. What types of insurance do I need to think about?
There are many different types of business insurance which can protect your business and it’s very unlikely you will be able to cover all possible risks through just one policy*. The more common types of insurance include:
- Public liability*
- General business package*
- Professional indemnity*
- Cyber insurance*
- Management liability*
- Tax audit insurance*
- Personal accident & illness*
Each of these types of insurance will help protect your business from certain events. Further, depending on the industry you work in, insurance such as professional indemnity may be compulsory.
3. How much insurance do I need?
It can be hard to know how comprehensive your policy should be but it’s important to think about having a policy that will cover your basic needs. The minimum for many businesses is having a level of insurance which complies with industry laws, for example financial advisors or architects. However, beyond this, the level of insurance you obtain will directly relate to the amount of coverage you’ll receive. For example, having a policy to cover $5,000 worth of equipment may not be sufficient if your equipment is actually worth $20,000.
4. What are the terms and conditions of the policy?
Every insurance policy contains terms and conditions which are outlined in the PDS (Product Disclosure Statement) and/or policy wording. These documents will list any exclusions, extensions, excesses and any limits which may apply to the items covered. Check your PDS/policy wording and make sure that it doesn’t exclude anything you want to specifically be covered for and that you’re happy with the terms of your policy.
5. Where can I find the right policy?
It’s important to shop around when looking for insurance to assist in getting the best deal. There’s a number of ways you can do this including using a comparison website, going straight to an insurance provider and checking out online reviews. Also look at your prospective insurance provider’s method for processing claims. Many providers now have tools which allow you to claim online, saving you time.
Looking for a better deal on business insurance?
BizCover can help you switch and save. Visit www.bizcover.com.au or call 1300 920 871 for hassle free quotes.
Browse now*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
