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How to Identify the Correct Small Business Insurance

Samantha Waites

Having a small business today can be an incredibly stressful, and trying, task. People today are shifting towards online platforms more than ever. If you want to be competitive you need to change with the times. That means that it is more important than ever to make sure that you have the correct small business insurance.

Your insurance agent may have given you some advice to follow, but they are not always operating with your best interests at heart. They are in the business to make money, just like you are. With that being said, let us go over the types of business insurance that you have available so you can make your own informed decision.

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Legally Required Small Business Insurance Policies

  • Worker’s Compensation: If you have even one employee you are legally required to carry this type of insurance. It covers your employees against any type of injury or death that may occur to them while they are on the clock. This not only covers you from lawsuits, but it covers the employees no matter how high the expenses are.
  • Third-Party Personal Injury Insurance: You are probably already familiar with this type of insurance, but just in case, it is an automotive insurance that covers personal injuries done to a third-party that may be involved in an accident with you. This is usually covered when you register the car, but make sure it is.
  • Public Liability Insurance: This policy will cover you against any third-party injuries or death caused on your premises, or due to any work you have done if you are self-employed contractor.

Liability Insurance Policies

  • Professional Indemnity: This is a small business insurance policy that covers you against lawsuits or financial losses due to advice or services that you have provided. If you give financial advice, for example, or if you are a building contractor, you need this type of coverage.
  • Public Liability Insurance: We covered this above but to clarify anyone that works with the public should have this type of policy, even if it not a legal requirement for your particular industry. Check with the iSelect small business insurance platform to get some choices.
  • Product Liability: This type of policy is designed to cover you against any damages brought against you due to a product that you have sold to the customer. It includes coverage against any types of legal costs. If your business sells any type of product, you should have this policy added into your business insurance portfolio.
  • Management Liability: This is a policy that covers managers and company directors against any lawsuits for mismanagement or misconduct. It is probably not necessary if you have public liability insurance.
  • Cyber Liability Insurance: This is one of those policies that you never had to worry about before, but since people have embraced online business and use cards to purchase goods or services you need to have it. This covers your business against any cyber attacks and the damage that it causes.

Assets and Income Insurance Policy

  • Building and Contents: This policy covers your building and contents against damages. Unless you work from home, you need to have this type of policy.
  • Theft: This covers you against any thefts of products or money. Once again, unless you work from home you will want this added on to your policy.
  • Commercial Vehicle: If you have a business vehicle, or a fleet of them, you need to add this coverage to protect against an accident that you, or one of your employees, is in.
  • Stock Deterioration: This covers any goods that are damaged to the point of having to toss them into the garbage. If you have any items that rely on cold, or hot, to be fresh you need this added on.
  • Glass: This covers the cost of any glass that may need to be replaced. Unless you work from home, this one is important to have.
  • Employee Fraud: Unfortunately, it is a widespread problem to have employees that steal or embezzle. This covers any losses due to the dishonesty of your employees. If you have even one employee, you need this coverage.
  • Machinery Breakdowns: This part of the policy covers the cost of fixing, or replacing, equipment that has broken down. If you have anything that is mechanical, you should have this to help cover costs.

 Business Interruption Insurance Policy

  • Business Interruption: If the operation of your business is interrupted, for any reason, this policy will cover your expenses until you get back up and running. This is a policy you should consider always having, you never know when something can hit you or your business.

Final Thoughts

Running a small business takes enough time and money from you that you should never have to worry about damages, theft, or injuries. That is where a good insurance policy comes in. You can see from above that there are many distinct aspects to a policy, and some may not apply to you. Many of them are grouped into a basic business policy but you will want to check your specific contract to make sure things that you need covered, are covered.

If you work from home, as stated under some of the policies, you will not need part of the coverage plans if you are covered through a personal home or rental insurance policy.

The overall small business insurance plan may cost you some money upfront, but you do not ever want to be caught without coverage. It could mean the loss of your business if you are sued and must liquidate everything to cover the costs. So, use the iSelect platform and find the plan that works the best for you.