When was the last time you enquired about insurance cover for your small to medium-sized business? And was the process confusing? If you answered recently and yes, it was confusing, you are not alone.
Running your own business is the dream of many people. Unfortunately, navigating business insurance can turn your dream into a nightmare. Not only can the process of determining your cover be confusing, but the wrong cover can lead to devastating consequences in the event of a claim.
That is why it is crucial to have experts available to help with your business insurance.
How Do I Decide What Insurance I Need for My Business?
Because Australia has several types of compulsory insurance for businesses, you should arrange this cover first, as you must comply with the law:
- Workers’ Compensation
- Compulsory Third Party
- Public Liability Cover
Knowing about the most common compulsory insurances is a first step on the road towards a well-insured business. However, there are dozens of types of cover readily available. Some policies among these are rather straightforward, but other policies are remarkably specific.
Here is a sample of some of the most popular business cover policies we see:
- Small Business
- Medical Facility
How Can an Expert Make Business Insurance Less Confusing?
An expert in business insurance can help make the process of getting cover less confusing. At the same time, an expert will offer you peace of mind, knowing all of your insurance cover needs are in line. There are other benefits gained by working with an insurance professional.
- Help you understand the confusing wording seen in many insurance policies
- Negotiate lower prices, in many cases
- Research your business’ insurance needs and look for the options you need rather than try to push your business into a one-size-fits-all policy
- Compare various cover to save you time and money
- Offer a variety of helpful information regarding your present policies as well as things you may want to consider in the future
- Give your cover a check-up periodically, to make sure you have the right coverage
- Renew your insurance cover each year to save you time
- Assist you with the claims process if you need to file a claim
- Apprise you of emerging threats such as computer viruses and updated malware
The insurance industry is rather fluid and keeping up with changes, especially those that require action on the part of the insured, can be difficult and daunting. Since it is easy to be caught off guard by so many confusing cover options, many business owners purchase either too much cover or policies that have no bearing on their business needs.
What Are Some Newer Threats to My Business?
- Damage to Hi-Tech Equipment – Business owners must take a moment to be sure that the insurance they hold will cover the significant cost of highly technical or automated equipment. Some policies have upward cover limits. Unfortunately, many businesspeople are unaware of what the top amount is before their coverage reaches its coverage limit.
- Cybercrime – While cybercrime takes many forms and has numerous targets, businesses are most frequently at risk from hackers. The overall number of attacks businesses encounter continues to grow.
According to a report from the Australian Cybercrime Online Reporting Network, ACORN, cybercrimes are up and have nearly doubled.
In fact, 24 per cent of Australian businesses reported they, in a three-month period from 1 April-30 June 2018 reports of cybercrime reached 13,687 and continue to rise. These statistics confirm that savvy business owners ought to get cover to protect their business.
Additionally, there are important steps a business owner can take to reduce the risk of a cyber attack, particularly when working from home.
What Will a Cybercrime Policy Cover?
Normally, a cyber attack on a business results in numerous undesirable issues. It is wise to be sure that several key points have cover including:
- Lost Time and Productivity
- Loss of Data (Personal and Professional)
- Replacement or Repair of Equipment Damaged Because of a Cybercrime
- Replacement of Damaged Software
- Compensation for Clients Who Experience the Loss of Personal Data
While the coverage is not compulsory, if you have a great deal of hi-tech equipment or your business depends on computers, you should consider learning more about this coverage.
Even though business insurance seems like confusing territory, reaching out to a professional with experience handling the field will help you breathe easier knowing someone has your best interests at heart.