Thinking about protecting your business? When it comes to insurance, the key thing to remember is that no two businesses are the same. That means what’s right for a cosy café is unlikely to be the best fit for an accounting firm – because different industries face different risks.
So, let’s take a look at how each type of cover could help you, according to our friends at BizCover
Public liability
In short, public liability insurance is crucial when there’s a chance of someone getting hurt or property getting damaged due to your business. It can step up in unexpected situations, like a customer slipping in your premises or you inadvertently damaging something at a client’s site. That’s why this type of cover is important for most businesses – from IT professionals and consultants to hospitality businesses and retailers.
Professional indemnity
For those offering advice or professional services, professional indemnity can be crucial. The thing is, mistakes can happen anytime to the best of us, no matter how much care you take. And from a client’s perspective, that’s less than ideal.
For example, if you’re an accountant and make an error in a client’s tax return, it can quickly turn into a stressful situation for them – and a complaint for you. That’s when professional indemnity insurance can step in, covering the legal costs and any potential settlement, and helping you maintain your business reputation.
Business interruption
When unforeseen events like natural disasters, fires, or major equipment failures disrupt your business, business interruption insurance can cover your lost income and ongoing operating costs. In many cases, this can be a game-changer – including for businesses that rely heavily on physical premises, like restaurants and cafés.
Tool insurance
Are your tools the lifeblood of your work? If so, tool insurance can protect your business if tools are lost, stolen, or damaged. This can be particularly helpful for tradie businesses, for example: if someone swipes your drill from your worksite or your power saw breaks down unexpectedly, you can get those replaced without a major hit to your business cash flow.
Cyber liability
As online business transactions increase, so does the need for Cyber Liability insurance. What would happen if your business experienced a data breach or cyber-attack? Cyber liability insurance can cover the costs of investigating the breach, notifying affected customers, public relations expenses, and even any legal claims that may follow.
This can be crucial for businesses that handle sensitive client data, like IT professionals and accountants, but really, any type of business can be affected.
Statutory liability
As you know, there’s more to running a business than daily tasks and long-term strategies. You also need to adhere to certain laws and regulations. Statutory Liability insurance can step in if your business unintentionally breaches certain regulations or laws, covering the cost of defending your business, and any fines or penalties you might face.
For example, this can be valuable for hospitality businesses, where potential breaches of health and safety regulations could result in substantial penalties.
Employer liability
Your team are an invaluable asset to protect. But despite your best efforts to make your workplace safe and secure, accidents can still happen. And while some injuries may be covered by ACC (like wounds, sprains, and fractures), that’s not the case for non-accidental injuries like sickness, stress, most hernias, and injuries that happen over time.
Employer liability insurance covers you if an employee claims they’ve suffered an illness or injury because of their work. This cover can be especially important for businesses like retail stores and bustling cafés, where there’s potential for workplace incidents.
The bottom line
The type of insurance you need is unique to your business and depends on the specific risks and responsibilities it holds. Not quite sure where to start? Get in touch with the experts at BizCover
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
