1. Are there any specific business insurance policies?

2. Should I use an insurance broker?

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1. Are there any specific business insurance policies?

There exists a selection of various business insurance policies designed to reduce your level of business risk.  Some insurance policies are legally required, where as others are optional.

Compulsory Insurance Policies

Worker’s Compensation
Worker’s Compensation Insurance is a  levy paid to an insurer to cover the businesses liability should one of their employees be injured whilst working.  Please note Worker’s Compensation Insurance is only compulsory for those businesses who employ staff.

Superannuation
Again superannuation is only compulsory if your business employs staff. Superannuation contributions are made to a specified fund, either designated by the employee or as established by the employer.

Other Non Compulsory Insurance Policies
The following principal policies should be considered as a part of insurance coverage even though they are not compulsory.

Fire
To protect your principal assets (Not limited to fire only. May be endorsed to include lightning, flood etc.)

Loss of Profit
Provides cover if the business is interrupted through damage to property by fire or other insured perils. This insurance ensures the anticipated net profit is maintained, it pays wages to employees and pays additional working costs if alternative facilities have to be used, subject to economic limits.

Public Liability
To cover the business’ potential liabilities to third parties for personal injury or property damage, should the business be shown to be negligent.

Personal Accident & Illness
If you are self employed and not covered by Work Cover, you should assess the need for compensation if you are absent from work by virtue of either a personal accident or illness. Benefits flowing from these types of policies vary and you need to ensure your personal needs are covered.

Professional Indemnity
Professional Indemnity is essential for anyone who offers service or advice in a specialised field. It covers errors or omissions in advice, design or specifications that causes the insured party’s clients or others a financial loss.

Other Insurance Policies
There are a number of other policies that, depending on the type of business may be considered appropriate to the small business person. These include:

• Burglary  - Covers the theft of assets from the business.
• Plate Glass - Covers the unexpected destruction of windows or other plate glass.
• Products Liability - If you are a manufacturer, or export goods for sale, you will need this type of policy.
• Goods in Transit  - Cover against loss or damage to property while being carried by your business vehicles, road haulage, air, rail or post anywhere. This can be simple insurance against collision, or an all risk policy which covers theft and negligence.
  

2. Should I use an insurance broker?

It is easier to consult with a business insurance broker, than deal with a number of different insurers for various products and services.  Some industry associations, including the National Insurance Brokers Association of Australia (NIBA) and the Insurance Brokers Network of Australia (IBNA) , offer search functions on their websites that allow you to find an insurance broker based on location as well as through areas of specialisation.