When to buy insurance for your small business

Running your own small business can be a hugely rewarding venture. You get to personally oversee every aspect of the business and run things exactly as you want. It can be an exciting and fulfilling journey – but it does come with some challenges.

Like, for example, the question of business insurance. You know that you should purchase insurance to protect yourself and your business, but when is the best time to buy it? And what kind of insurance is the right fit for your needs?

Brad Miller co-founded BizCover 15 years ago with the idea that purchasing business insurance should be simpler and easier for small business owners. Too often, small business owners know they need insurance, but are discouraged by seemingly endless paperwork and overwhelming choices.

Today, Brad is still heavily involved in the company as the General Manager. “Whenever you’re running your own small business, insurance is something that you can’t afford to put off. If anything unexcepted happens, then you know you’ll be covered.”

When should you get insurance for your small business?

It’s a good idea to consider purchasing small business insurance sooner rather than later.

Brad says, “Most small business owners will tell you that anything can happen when you’re running your own business – even before your first day of actual trading. That’s why it’s crucial to get your insurance sorted out as soon as possible.”

For example, let’s say that you’ve decided to go into business for yourself as a plumber. But before you’ve even booked your first job, your tools are stolen from inside the secure locker in your garage.

Portable Equipment cover is an insurance option available through a Business Insurance Package that can cover specified items such as tools, business equipment or electronic items, or unspecified items of lower value. In the case of stolen work tools, this kind of cover could ensure that your business is still able to operate successfully even after an unforeseen and potentially disruptive event occurs.

What you’ll need to buy business insurance

The first thing most new small business owners do is get an Australian Business Number (ABN) and register the business name.

However, in order for you to purchase business insurance through BizCover, all you need is an “entity name” (which can be the name of your business, or your own name if you are a sole trader) and to be based in Australia. This makes it simple for you to purchase insurance even before your official business launch day.

“We know that small business owners and sole traders usually have a lot on their plates,” says Brad Miller. “By streamlining the whole process, we’ve made purchasing insurance much easier and simpler for small and medium businesses. It’s not a complicated, daunting process you just want to keep putting off – you can do it all online in just a few minutes.”

Different types of business insurance and their costs

There are about 2.6 million small businesses in Australia, and BizCover has insured more than 235,000 of them to date. With so many businesses operating across various industries, you can bet that each one has different insurance requirements and needs. What works for one small business may not be the right fit for another, even if they’re operating in the same industry.

The cost for popular cover options will differ from business to business. It can also depend on whether you’re running a small business or operating as a sole trader. This is why BizCover makes it easy for you to compare different policies online and choose the cover that works best for you.

What happens after you’ve purchased small business insurance?

Now that you’ve secured your business insurance, there is still some work to be done. Implementing effective risk management strategies and adapting your cover as your business needs change are both important things for you to consider moving forward.

Implement a risk management strategy

A risk management strategy involves proactively identifying and assessing potential risks to your business. By accurately gauging these risks, you can then take measures to minimise them. This could include maintaining strict safety protocols, conducting regular staff training, and routinely overseeing safety inspections.

Effective risk management not only protects your employees, assets and customers, but could potentially also help to lower your insurance premiums – leading to long-term cost savings.

Adjust your insurance as your business evolves

Business insurance is not a “one size fits all” kind of product. At BizCover, we understand that all small business owners and operators need a custom approach to buying insurance. This continues to be true as your business grows.

Brad says, “As your business changes over time, your insurance requirements will change, too. This means you may want to think about updating or changing your insurance policies after you’ve purchased your cover to make sure your cover still reflects your business needs.”

BizCover helps you compare multiple quotes quickly and easily. Find out more about our range of products from selected leading Australian insurers and how much you can save today.