Business insurance is a must have these days. But, do you know what type of insurance is best for your business and for your own protection as an owner? It can be daunting to try and understand this yourself and there is no “one size fits all” answer.
So, if you are a small to medium enterprise business owner, what should you consider when it comes to selecting insurance? You should think about what type of industry your business is in. You should think about all of the possible ways that your business could suffer if you aren’t protected. And, you should think about how much it would cost you and your business if you had to pay for these losses yourself.
If you have employees, you should consider looking into protecting your business and your employees in the event of illness or injury, especially if it is on the job. Life Cover, Disability Income Protection, Trauma Cover, Total Permanent Disability (TPD), as well as health benefits should be looked into if you have employees.
To help you decide what business insurance you may need, you should create a risk management plan.
- Determine what potential risks your business could face if anything were to happen to you or your employees
- Cost out the expenses of each of these risks
- Determine if your current insurance is sufficient or if you don’t have insurance look for insurance that would at a minimum cover your costs
As you can probably tell there are many factors to consider when obtaining insurance for your business. Knowing the industry that you are in, whether or not you have employees, determining how you and your business would handle a serious illness of yourself or a key employee, etc., are all factors that should help shape the insurance package that you choose.
We do recommend that you speak to a professional adviser, even if you are confident you can find the right insurance on your own. A professional adviser will help you think about all possible factors and circumstances to protect your business and yourself.
Have you ever had to use your business insurance? Was it a positive or a negative experience? Did you have the right insurance? Was your insurance enough?