8 Types of Insurance all Australian Small Business Owners Should Consider

Every time a business opens for trade, it confronts various dangers, including fire, theft, damage, and even being sued for injuries by a member of the public. As a result, having a variety of business insurance is crucial to safeguard your assets and yourself – but there are several options, so which types of business insurance are the most effective?

As reputable commercial insurance brokers at First Choice, we understand that you’ve worked hard to bring your company to where it is now! Which is why we encourage all owners to consider taking out the following eight commercial insurance policies to ensure that your business is appropriately protected.

Which Business Insurance Policies are Necessary?

Depending on your business’s operation state, you may already know that some insurances are necessary in Australia. If you are unsure of which are essential for your business, talk to one of our commercial insurance brokers:

  • Workers’ compensation insurance is essential if you have employees to safeguard them in the case of an accident or sickness.
  • Third-party personal injury insurance is required if you own and use motor vehicles as part of your business to protect yourself from personal injury claims arising from their usage.
  • Public liability insurance is needed by some businesses and self-employed people in some states, such as plumbers and electricians, to protect you from third-party death or injury.

However, in Australia, several types of business insurance are available, each of which protects you against somewhat different risks and dangers. As trustful business insurance brokers, here are our top eight insurance recommendations necessary for business owners.

  1. Life Insurance

As caring life insurance brokers, we understand that many people get life insurance just to safeguard their loved ones. Which could be used to pay off the mortgage, provide a steady income, or simply provide a financial cushion during a difficult period.

But, what would happen to your company if one of your business partners died? In most cases, their wife/husband or even children would inherit their share of the business. Would your inheritor be able or even willing to work in the company?

Instead, as life insurance brokers, we recommend that business owners recommend life insurance to be used as part of a ‘buy/sell agreement’ to help business owners avoid this dilemma!

The plan requires each partner to obtain a life insurance policy that covers their ownership stake in the company. Then if a person dies, in exchange for the individual’s part of the business, the earnings from the life insurance policy are given to their estate. According to the buy/sell agreement, the decease’s business part is then redistributed among the remaining owners according to the buy/sell agreement.

The cost of life insurance varies dramatically depending on various criteria, including your age, gender, smoking status, and the quantity of coverage you require. So, request a quote from one of our life insurance brokers to determine how much your insurance will cost!

  1. Professional Indemnity Insurance

This insurance covers businesses that provide specialised services or professional advice from litigation and financial damages that may arise from a client following your advice or using your service. For example, if you’re a builder and it’s discovered that your work has severe structural flaws, you might be sued. A professional indemnity insurance coverage would assist in defraying legal expenses.

  1. Stock and Product Liability Insurance

If you want to sell a product as part of your business, you should consider purchasing product liability insurance. This will safeguard your company if your product causes damage, and it should be tailored to the precise product you want to manufacture.

  1. Business Vehicle & Fleet Insurance

Whether you’re a builder, tradesman, delivery firm, or commercial enterprise searching for vehicle insurance, you may have many cars protected under a single commercial fleet insurance policy. These vehicles can be registered in the name of a company, a partner, or a director, allowing you to cover your whole operation with a single policy. For example, a fleet might be as little as two vehicles, depending on the insurer. Our business insurance brokers can also assist with individual business vehicle policies.

  1. Property Insurance

Whether you own or rent an office, or work from home, you should insure the area you operate in and the equipment you keep there to safeguard against theft and accidents. Keep in mind that most homeowner’s insurance plans do not cover issues linked to working from home, so it’s worth double-checking with one of our business insurance brokers how your current coverage pertains to your company.

  1. Professional Liability Insurance

Protecting yourself against negligence lawsuits with professional liability insurance is necessary to provide a service. This type of claim may arise if you make a mistake or fail to deliver your professional services—this is especially true if your industry has professional guidelines that you must follow.

  1. Cybercrime Insurance

Technology/cyber insurance can cover accidental damage to or loss of information from IT systems and networks, as well as protect your company from a variety of internet-based dangers as well as risks associated with information technology infrastructure and operations. In the case of a cyberattack, cybercrime plans should cover you against the expenses of company disruptions and data security procedures.

  1. Business Interruption

You may think of it as business-specific income protection insurance. In the worst-case scenario, your company’s operations will be disrupted, resulting in a loss of revenue and the ability to manufacture products. However, if your business relies on a specific physical location, such as a factory or a retail store, you should consider this type of coverage.

Ready To Safeguard Your Business? Get Started Today with First Choice Commercial Insurance Brokers!

Purchasing company insurance may be a difficult task for anyone! That’s why it’s essential to reach out to expert commercial insurance brokers if you need advice on the best insurance policies for your business or simply need a better grasp of insurance jargon and coverage.

Our knowledgeable agents can also assist you with saving money by combining insurance. For example, you can qualify for a business owner’s policy, including general liability and commercial property coverage.

First Choice Mortgage Brokers have over 30 years of experience in the Finance and Banking Industry. We are well-positioned to assist you with all your financial requirements. Our mortgage brokers can visit you at your workplace, home, or location of convenience to discuss your current situation and how First Choice Mortgage Brokers can assist.

From loans for small businesseshome loans, investment properties, debt consolidation, personal risk insurance, life insurance brokers and everything in between, we offer all mortgage broker services for FREE! So, you can sit back and relax while we do the running around to find the perfect fit for you.

First Choice business insurance brokers offer services throughout all major capital cities, including Mortgage Brokers Sydney, Mortgage Brokers Melbourne, Mortgage Brokers Brisbane, Mortgage Brokers Adelaide, Mortgage Brokers Perth, and Australia.

Please call First Choice commercial insurance brokers on 1800 111 455 or email First Choice Mortgage Brokers at enquiries@firstchoicemortgage.com.au to discuss your life insurance opportunities and any assistance in accessing the commercial insurance application process.

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You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.

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