Running a business is risky, and often involves putting your own finances at risk. Skating business without insurance could expose your business to a grave risk. Without insurance coverage, a single accident or lawsuit could quickly drain your resources and drive you out of business.
When considering what types of policies your business needs, it can quickly become very confusing to keep the terms straight. An easy way around this dilemma is to keep in mind that all business insurance and all policy types cover one of four things: property, liability, people or income. We tried to suggest you what is ‘essential’ and what is ‘worth-considering’ under these broad head, but please take it just as a guide and make your own assessment based on your needs.
The property used in your business such as the structure you do business in or the vehicles used in your business need to be protected.
Fire and perils
Damage to building or contents by fire, lightning, explosion, malicious damage, earthquake, storm & water.
Theft involving violent, forcible entry, loss or damage to stock, goods held in trust and all contents for which you are responsible within the premises. Does not normally cover theft by employees or others entitled to be on the premises.
Loss of tools of trade or profession, stock in trade and office contents, whether they are at or away from the premises
All company/business vehicles must be insured for third party injury liability. A comprehensive policy covers third party property damage and own damage
Accidental breakage to a glass door, shop window, glass display case or refrigeration cabinet.
No one is perfect, your business may make a mistake and, especially if your business is open to the public, there is always the chance your business will be held liable for an injury or error. Liability insurance provides coverage in case your business is sued for something it did – or didn’t do – that resulted in property damage or injury to someone.
If you supply advice you can be sued for financial loss due to errors or omissions. The cover should stay in force even after you give the advice if you retire etc. Examples of professionals are architects, designers, education workers, real estate agents, health workers and consultants.
Claims of goods causing injury or damage. If you sell, supply or deliver goods, even if you repair goods or supply them as a service.
Third parties suing you for personal injury or property damage they sustain while on your property if you’re negligent.
Directors and office bearers liability
Cost of civil legal action if directors and officers of companies and non-profit organisations are sued for negligence carrying out their duties and responsibilities.
Employment practices liability
Claims and legal costs by employees for employment-related allegations. Examples: sexual harassment, wrongful dismissal, or discrimination on the basis of age, race, sex or religion. Covers your firm, directors and officers.
At the heart of every business are its people. You and your officers, managers and employees are the company’s greatest assets and must be protected. People are protected by workers compensation policies, health and life insurance policies.
Claims from the death, injury or illness of employees arising out of and in the course of their employment.
Key person insurance
Death or long-term disability of a ‘key person’, usually someone vital to the continued running