5 small business insurance tips

Business insurance is key to protecting your business’s future as it provides a safety net for your assets, employees, and your financial bottom line. This gives you the confidence to handle business challenges effectively.

To help you out in this aspect of managing your small business, we’ve complied five actionable tips designed to help you tailor your insurance to meet your unique needs

1. Evaluate the risks your business faces

Getting a handle on the specific risks your business faces is the first step in protecting your business and ensuring long-term success. Every industry has its own set of challenges, and knowing yours can help you pinpoint the exact insurance coverage you need.

Client Lawsuits

If your advice or service falls short of client expectations or contractual obligations, you may face lawsuits lodged by your clients.

Cyber breaches

As businesses move increasingly online, the risk of cyber incidents increases. And it only takes one hack to compromise sensitive client data and disrupt business operations.

Workplace injuries

It doesn’t take heavy machinery or hazardous materials. Even a loose carpet in the office could result in an injury and costly claims.

There are government resources that can help you through the process of evaluating risks to your business operations. Sites like Safe Work Australia offers extensive materials on how to identify hazards in various workplace settings.

2. Choose the right insurance cover

Different types of policies are designed to cover various aspects of business risk, and understanding which ones meet your specific needs can save you a lot of trouble down the line. Some forms of business insurance may also be compulsory for small business owner. For example, certain industries may require you to hold a minimum level of Public Liability insurance before you can operate.

Here are a couple common business insurance types to consider if you run a small business:

• Public Liability Insurance: Covers third party injuries or damage to their property caused by your business activities.
• Professional Indemnity insurance: Covers businesses that provide professional advice and services. This policy protects you against claim of errors, negligence or breach of duty.
• Cyber Liability insurance: Provides protection against online risks, such as cyber threats and data breaches.
• Personal Accident & Illness: Covers you if you’re unable to work due to injury or illness.

3. Seek professional advice from an insurance expert (like BizCover)

Talking to someone who understands the ins and outs of business insurance can help clarify the types of policies that would fit your business needs. An expert can provide much needed guidance, whether you’re looking to understand the differences between Public Liability and Professional Indemnity, or if you’re unsure if you need Cyber Liability insurance. Plus, getting advice from a professional could uncover potential discounts or package deals you might not find on your own.

4. Consider bundling policies

When it comes to business insurance, there’s something to be said for keeping things simple and streamlined. A Business Insurance pack typically combines a few policies into one convenient package. This can include the ever-important Public Liability insurance, but you can also include Glass cover for your office windows, Theft cover to safeguard against burglary, Building and Content insurance to cover your physical assets, and Business Interruption insurance for when unexpected events disrupt your normal operations.

Bundling these policies offers comprehensive protection and simplifies your insurance with a single renewal date, and point of contact. This helps you streamline your administrative tasks and may even reduce the overall cost.

5. Review and Update Your Insurance Regularly

Keeping your insurance up-to-date should be as routine as your annual check-up. As your business grows and evolves, your business insurance should grow and adapt with it. Holding an annual review is good practice that ensures your business insurance is keeping pace with changes in your business.

Switch and save with BizCover

Within minutes, you can compare multiple quotes from top Australian insurers and find the cover you need — quickly, affordably and drama-free. Over 250,000 small businesses trust BizCover for affordable, reliable business protection. Why not join them today?