What are the key insurances for businesses in 2022?
Running a successful business requires more than just a good business plan, strategy and customers. You’ll also want peace of mind that should things go wrong, your business and its assets will be protected. Having the right business insurance can mean the difference between staying in, or going out of business.
With so many insurances on the market, which ones are the most important for businesses?
Some insurances are required by law, including Workers’ compensation insurance (in some states) and Public liability insurance. However, there are other types of business insurances that we would see as equally important as they can cover your business assets, employees, potential earnings, clients and more.
Here are some of the key business insurances to have in Australia today and we outline what they do and don’t cover.
- Workers’ compensation insurance: As a business owner and employer, in some States, you must cover employees against injury and inability to work resulting from a workplace injury. Workers’ compensation can provide weekly compensation and lump sum benefits in the case of permanent disability. Workers’ compensation rules vary between states and territories, so check the requirements for your particular location/s and industry. Rules also vary depending on whether you’re a contractor or sole trader – check with your state or territory’s workers’ compensation authority for the relevant details.
- Public Liability insurance: All businesses, large or small, should consider having Public Liability insurance which covers third-party personal injury or death. If someone is injured or has their property damaged as a result of your business activities, even if you are seemingly not at fault, you could still be liable for related expenses. It is only compulsory for certain businesses and self-employed business owners in certain states.
Speak to one of Resilium’s insurance advisers for more information.
Other important business insurances
Business insurance policies generally offer a wide range of individual insurance policies all under a single package designed around your specific needs and potential risks. Policies vary vastly as far as type and level of cover depending on the Insurer.
While you may be interested in insurances that cover your employees and customers, there are also other business insurances that can cover your business assets, earnings, and reputation.
Click here to see the business insurance packages available through Resilium Authorised Representatives.
- Employment Practices Liability insurance
Mistakes can happen even in the best-run companies. Employers can be liable and exposed to various liabilities as far as their responsibility for the safety and well-being of their employees.
While business owners can take out workers’ compensation insurance for their employees, Employment Practices Liability Insurance is another key insurance that is becoming increasingly popular. Employment Practices Liability insurance provides organisations with cover for actions taken by employees against their employers, whether it be for alleged discrimination, unfair dismissal and sexual or workplace harassment. Australia is becoming increasingly litigious, with claims of unfair dismissal, sexual harassment and racial discrimination more common than ever.
Find out more about Employment Practices Liability insurance here.
- Professional Indemnity insurance
Professional indemnity insurance is designed for businesses that provide professional advice, which requires some particular skill, training or qualification. For example, an Accountant may be sued for advice that sees their clients audited and penalised for their tax return. It’s similar with a whole host of other professions and essentially covers your business from financial losses due to claims made against you for your professional services. This insurance is really quite important as far as protecting you and your company from potential lawsuits and damages that might be granted.
Find out more about Professional Indemnity insurance here.
- Directors’ and Officers’ insurance
While Company Directors are meant to make decisions in the best interest of the business they run, even the most competent people can make mistakes. However, even when the intentions are good, Company Directors may still have claims brought against them and be held personally accountable for these claims.
Directors and Officers Liability Insurance protects Company Directors and Officers of a corporation or business against legal liabilities that might arise while managing an organisation. People in these positions may have claims brought against them by shareholders, employees, competitors, statutory bodies or even the corporation with which they work.
Find out more about Directors’ and Officers’ insurance here.
- Business interruption insurance
As your business grows, the greater your fixed costs will be and the more expensive it will be if an unfortunate event sets you temporarily out of business. Any business interruption will most likely impact your revenue while at the same time you’ll probably continue to face the usual wage, rent and other business costs.
Business interruption insurance can cover you for loss of gross profit or gross rentals following an interruption to your business through fire or burglary and a range of other events.
Find out more about our business insurance options here.
- Cyber insurance
Cybercrime is becoming one of the leading business risks globally. The illegal release of personal information like customer or employee records, credit card details or patient information can not only affect a business financially, but it can also harm your intellectual property, client trust and reputation.
In this digital age, a cyber-attack can make it difficult or impossible for a business to keep operating. In addition, if your business systems are compromised and your customers’ personal data is taken the damage could extend to being investigated by the government regulator and/or being sued by your customers.
Find out more about Cyber insurance here.
For more information on a wide range of cover options or to arrange Insurance for your business, please contact us and speak with one of our advisers. Alternatively, you can click here to find a Resilium Adviser in your local area.
The information provided in this article is of a general nature only and has been prepared without considering your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium directly.