#### Contents 1. [What is business insurance and how does it work?](#what-is-business-insurance-and-how-does-it-work-2) 2. [What happens if you don’t get business insurance?](#what-happens-if-you-dont-get-business-insurance-2) 3. [Types of business insurance](#types-of-business-insurance-2) 4. [What to consider when choosing business insurance](#what-to-consider-when-choosing-business-insurance-2) ![Two men sitting at a table and talking business.](https://cdn.productreview.com.au/resize/avatar/f63feede-ff78-510c-b8ba-e3237fa688d3?width=826) This guide should not replace professional financial advice. ## What is business insurance and how does it work? There are lots of risks involved in running a business. To protect against this risk, business owners take out business insurance policies in the event that something happens. There are many different types of business insurance policies, but depending on what policy you have, business insurance can cover your business for lost income, legal liability, damage to property, and more. Some types of business insurance are compulsory, either by law (such as worker’s compensation insurance) or because those you deal with may require it. Compulsory insurance for businesses in Australia includes: - Worker’s compensation insurance (if your business has employees) - Public liability insurance (compulsory in some industries) - Third-party personal injury insurance (if you own a motor vehicle) You may require other compulsory insurance depending on the industry or sector your business operates in. Talk to a business adviser or business insurance broker to learn more about what insurance you need. ## What happens if you don’t get business insurance? If you don’t take out business insurance and it’s mandatory for your business, you could be fined or even face jail time. That aside, if you don’t have business insurance, you’ll have to pay out of pocket for all the things you don’t have cover for. Depending on the incident, what you owe can add up fast. For more serious events, you could be liable for a huge payout, particularly if you need to pay for legal costs, lost income, or repairs. ## Types of business insurance There are many different types of business insurance, so what you need will depend on the law, the nature of your business, and what you want cover for. Here’s a quick overview of some of the more common insurance types. Note that This is not an exhaustive list. ### Worker’s compensation insurance Worker’s compensation insurance is compulsory if your business has employees. It covers the business for costs it’s liable for if employees suffer a work-related accident or illness. In most cases, an employer will have to provide worker’s compensation through an authorised insurer. If you’re a sole trader, you can’t cover yourself with worker’s compensation insurance, as this insurance is for employees. This means sole traders need to insure themselves against death, disability, or illness. ### Public liability insurance Public liability insurance provides protection for you, your staff and your business for legal costs and other expenses if, while you’re running your business, a third party gets injured or their property is damaged on your premises, because of your products, or if you’re negligent. An example is if your business causes injury or death, such as a customer slipping on your premises. While it’s not compulsory in Australia, some contracts may require your business to have it for your business to operate. ### Professional indemnity insurance If you provide a service or give professional advice, professional indemnity insurance covers you if there are financial losses as a result of your advice. It may cover breaches of a contract, such as not achieving the results of a contract or providing negligent advice. ### Product liability insurance If your company sells, supplies, or delivers goods (this can mean products, repairs, or services), then you may want to consider product liability insurance. This insurance covers third-party damages if your products cause injury, property damage, economic loss, nervous shock, or death. ### Third-party personal injury insurance Third-party personal injury insurance covers for death and injury when you or the person driving your vehicle is at fault in an accident. This insurance is compulsory if you own a motor vehicle, and applies whether your vehicle is for business or personal use. ### Personal or loss of income insurance There are different types of personal or loss of income insurance that cover you or your business in different situations. This includes, but isn’t limited to: - **Income protection or disability insurance** covers part of your income if you’re unable to work because you’re suffering a sickness or have had an accident. - **Life insurance** gives your beneficiarites either a lump sum or a series of payments if you die. This type of insurance helps your family meet their financial obligations if you can no longer provide for them. - **Total and permanent disability insurance** gives you a lump sum payment if you become permanently disabled before retirement and can no longer work. - **Business interruption insurance** protects you if your business suffers damage to property by certain insured events, helping you pay your ongoing expenses and maintain profits. - **Employee dishonesty or fidelity insurance** covers losses caused by employee theft or fraud. - **Management liability** covers your personal assets when a manager at your business acts in an illegal or unethical way, which results in losses to individuals or businesses. - **Tax probe or tax audit insurance** covers the fees of professionals and accountants if financial or tax affairs of your business are audited by the ATO or another agency. ### Stock, products and asset insurance If your business has stock, property, products, and assets, there are a variety of insurance policies that can protect you if something goes wrong. This includes, but isn’t limited to: - **Building and business contents insurance** covers against events like fire, earthquake, floods, and malicious damage. - **Burglary insurance** covers business assets and is particularly useful for retailers who have a business property that isn’t always staffed. - **Deterioration of stock** covers your business when a fridge or freezer breaks down and chilled, refrigerated or frozen stock rots. - **Machinery breakdown** covers your business when mechanical and electrical machinery at your work site break down. - **Goods in transit** covers the goods you buy, sell or use while they’re being transported. ![Three people sitting around a table and talking business.](https://cdn.productreview.com.au/resize/article-image/afed4354-2785-5d99-b4d0-3aff4f4232cb?width=826) ## What to consider when choosing business insurance ### The needs of your business Before seeking out a policy, you should sit down and think about: - The needs of your business - The risks your business faces - What could go wrong with your business (and how likely these are to happen) When thinking about things that could go wrong, you should try to evaluate the consequences of each risk and, if possible, try to assign a monetary value to them. This will help you decide what you need cover for (as if it happened it may bankrupt your business) and what you might not need cover for (such as the theft of some low-value stock). #### Get advice from a licensed expert Insurance is a tricky topic, so it’s a good idea to get advice from a business adviser or business insurance broker. You can check an insurance broker’s license on the Australian Securities & Investments Commission’s (ASIC) register. You should also check information on insurance in the state or territory your business operates in, as rules and regulations can vary. ### What the policy does (and doesn't) cover Make sure you clearly understand what you’re covered for under your different policies, and make sure you have an appropriate level of cover. Claims may not be approved if you’re underinsured. #### Read the Product Disclosure Statement (PDS) of your policy Your policy’s Product Disclosure Statement will outline what’s covered in your policy, and will also detail your policy’s exclusions, excess, limits and more. ### Terms and conditions Sometimes an insurer will have certain things you need to do so that the policy remains valid. For example, some insurance policies require you to install locks on windows to protect you against theft. Follow these terms to help increase the chance of success of any claims you submit. ### Scalability Whether or not you expect your business to grow and its needs to change, consider the scalability of an insurance policy. For example, can you upgrade or adjust your policy if you increase or reduce the size of your team? Can you add on extras later down the track? ### Renewal period Most business insurance policies renew annually, however you may be able to choose a shorter renewal period - some policies offer a 6 month renewal period. Make sure you know when your policy is due for renewal so you can look over your policy and see whether you need to make changes to it (particularly if your business has undergone important changes) or if you might want to look for a better deal. ### Cost The price of business insurance will vary depending on a number of factors, including the type of business you have, the level of cover you need and want, and the level of risk your business faces. Shop around and get quotes from different providers to get a good idea of what a suitable policy will cost you. It’s also worth noting that you can claim tax deductions for most expenses you incur in operating your business. ## The bottom line Before you meet with a business adviser or business insurance broker, it’s important to have a good think about the nature of your business and the needs of your business. Being well prepared before talking to an expert will help ensure you choose insurance that’s right for your business. Remember to review your insurance cover: - Before you renew it - When you acquire or dispose of assets - When major or important changes happen in the business Disclaimer: The information on this website is for general information only. It should not be taken as constituting professional advice from the website owner - ProductReview.com.au. ProductReview.com.au is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances. ProductReview.com.au is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website. { "@context": "https://schema.org", "@type": "Article", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://www.productreview.com.au/c/business-insurance" }, "headline": "Best Business Insurance", "description": "Learn how to protect your business with business insurance, including public liability insurance, professional indemnity insurance, and more.", "image": "https://cdn.productreview.com.au/resize/avatar/f63feede-ff78-510c-b8ba-e3237fa688d3", "author": { "@type": "Person", "name": "Clara Von Dinklage" }, "publisher": { "@type": "Organization", "name": "ProductReview.com.au", "logo": { "@type": "ImageObject", "url": "https://cdn.productreview.com.au/assets/public/og_logo_1a8a64.png" } }, "datePublished": "2023-08-08", "dateModified": "2023-08-08" }

Best GIO Business Insurance

GIO Business Insurance