Establishing a new business is an exciting time, but along with the fun jobs there are also a few less exciting tasks to be done.
Some of the fun jobs include choosing a business name and having a logo designed, as well as finding your new premises and fitting it out.
The less exciting tasks can vary, but in most cases business insurance will definitely fall into this category!
Whilst insuring your business may not be the most interesting part of setting up a new enterprise, it is certainly one of the most important if you wish to protect yourself and your business.
What are your risks?
Insurance isn’t just about choosing a policy and paying the premium. It is about protecting yourself and your business against the risks that you face.
Therefore the first step in looking after your business is to consider all of the risks to your business.
Many businesses will have common risks, but they will also have their own unique risks depending on the business type.
For example a cafe business and a tradie may seem very different, but there are in fact many common elements between a cafe insurance pack and a tradesman insurance pack.
Both business types have the risk of causing injury to another person. For the cafe it could be through slip and fall injuries, whilst for the tradesman it could be through workplace incidents.
Likewise the cafe owner and the tradesman both have property to protect. For the tradesman it will be his tools, and for the cafe owner it will be their fit-out and stock etc.
So the first step for your new business is to assess your risks. Some of the common ones to consider include the risk of:
- Causing personal injury to others
- Causing damage to the property of others
- Providing advice which results in a financial loss
- Having your property stolen or vandalised
- Having your property damage through fire or storm
- Being unable to operate your business for a period of time
Covering your risks
Thankfully a new business can cover many of the risks listed above with insurance.
The risks of causing property damage or personal injury to another person can be covered by public liability insurance, whilst the risk of providing negligent advice can be covered by professional indemnity.
Risks associated with loss or damage to property can be covered by a range of different covers designed to protect against theft, vandalism, fire, accident and storm damage
Getting good advice
If this is your first business and you have never required business insurance in the past, the best thing you can do is seek professional advice.
An insurance broker will be able to run through all of your business risks with you in order to determine which types of insurance you require.
The broker will also be able to obtain multiple quotes for you in order to get you the best deal on your cover, which is important since we all know the importance of keeping costs down in a new business.
We have put together a guide on choosing your first insurance broker to help with finding the right fit for you and your business.
Setting up a new business is an exciting time, and by getting your insurance right the first time you can save yourself a lot of time, money and heartache down the track.