Small business insurance explained

There are a variety of small business insurance policies available, and it is important to choose the right one for your business. Depending on the type of business you have, you may need different types of coverage. For example, if you have a retail business, you will need different coverage than if you have a service-based business. While it may seem like an unnecessary expense, small business insurance can ultimately save you a lot of money and hassle in the long run.

What insurance do I need for my small business?

The most common types of small business insurance are those forms of insurance are required by law.

What are some of the common insurance mistakes small businesses make?

Not getting appropriate liability covered – can lead can legal action. For example, a sole trader engineer did a job for a client and the job they did failed which then caused the machine to need a full engine rebuild. He had no liability in place so the engine rebuild was not covered.

Protection from personal injury or damage to property

As a small business owner, you know that liability risks are always lurking. A customer could slip and fall in your store. You could be sued for professional negligence. Or someone could allege that one of your products caused them harm. If any of these things happened, you could be on the hook for thousands of dollars in damages. That’s why small business insurance is so important.

Public liability and product insurance can protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence.

Workers compensation insurance

Workers compensation insurance covers the wages and most medical bills of your workers if they suffer a work-related injury, and it’s compulsory if you have employees.

Public liability and product insurance

Small business liability insurance is one of the most important types of cover for small businesses. Small business public liability insurance can help to protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence. If you have employees, then employers’ liability insurance is also a legal requirement.

If an accident or unforeseeable incident causes damage or injury to someone (other than your employees), you may be found legally liable to cover the costs. Without small business liability insurance, legal bills and compensation for these claims could disrupt your cash flow or ruin your business.

Small business public liability insurance will generally pay your costs of investigating, defending, and settling claims, as well as any compensation payment you are found legally liable to pay. Depending on your small business public liability insurance policy, it can cover personal injury, advertising injury and property damage.

NewSure General Manager, Brett Edmonds who has spent over a decade working in insurance, recognises the unquestionable need for businesses to ensure they have enough liability cover.

“We constantly see new customers coming to us underinsured,” he said. “This exposes them to risk which could ultimately put them out of business. For example, a sole trader engineer does a repair job on a machine and it fails, causing the machine to need a full engine rebuild. The engineer has no liability in place so the engine rebuild is not covered. For a small business a $50,000 hit to their bottom line could set them back 12 months or more.”

Not getting appropriate liability covered – can lead can legal action. For example, a sole trader engineer did a job for a client and the job they did failed which then caused the machine to need a full engine rebuild. He had no liability in place so the engine rebuild was not covered.

Whether you run a business from home, work on-site at your client’s offices, or have a team and an office, small business liability insurance can protect you from these unexpected costs.

Management liability insurance

When you’re managing a small business, you may be personally liable for any actual or alleged breaches of the Corporations Act.

Management liability insurance covers your assets when a claim is made against a manager or director relating to unethical management practices.

Protection against cyber attack loss of stock and equipment

Small business insurance can cover your stock and equipment against loss or damage. If you have a commercial premises, then you may need to insure it against fire, flooding or theft. If you run a home-based business, then your home contents insurance may provide some cover for your business equipment.

Other business insurance policies you may need include as a small business could include: cyber insurance and business interruption insurance. Our team of brokers will access your needs and can recommend the right insurance policies to protect your business.

How much is small business insurance?

Business insurance cover starts at as little as $1,000 annually. On average most small businesses will spend less than $2,000 annually on insurance. Policies can be paid monthly, to assist with cashflow.

Compare small business insurance quotes Australia

There are a number of different types of small business insurance available and it is important to choose the right cover for your business.

NewSure is a specialist small business insurance service provider, helping you compare quotes and buy business insurance.

We offer complete insurance solutions for all types of businesses – from start-ups to medium and large size enterprises. Let us help you.

Talk to us or request a callback.

Important notice – NewSure Insurance Brokers Pty Ltd

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.

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