The Different Types of Business Insurance: Which One is For You?

The Different Types of Business Insurance: Which One is For You?

 

The right insurance for your business can help you manage risks and protect both your income and your customers. Learn the different types of business insurance (some of them are compulsory!) and find which ones you need for your business.

Types of Insurance that may be required by law

There are some forms of insurance that are compulsory depending on your type of business. Here are some of them:

Workers’ Compensation Insurance

If you have an employee in Australia, whether they’re around 200 or just 3 people, you have a legal obligation to protect them from injury. While rules vary per state and territory, workers’ compensation insurance is compulsory for all employers in Australia. This type of insurance protects all your employees from any financial hardship that may result from an accident or illness.

Third Party Personal Injury Insurance

If your business owns a motor vehicle, then a third party personal injury insurance is required by the law. The arrangements for third party personal injury insurance may vary depending on your location and in most cases, they can be purchased from the insurer.

Public Liability Insurance

While Public Liability is not required for most businesses in Australia, there are some situations where you need it before you can legally operate. Public Liability Insurance covers the costs of a person being injured or their property being damaged as a result of your company's activities. Legal fees or compensation will be covered under your insurance in the case of a lawsuit.

Other types of Business Insurance

There are other insurance products available for businesses in Australia that may not be required, but still important to have if you want to protect your company from almost anything.

Product Liability Insurance

Product Liability Insurance protects businesses that produce and sell products to the general public or other businesses in the event that a product they sell, assemble, or supply causes harm to an individual or their property.

Professional Indemnity Insurance

This type of insurance aims to protect professionals and business owners from unexpected damages or losses caused by claims of negligence, breach of duty, error or omissions and other allegations. Professional indemnity insurance is recommended to all who are providing paid professional advice such as consultants, doctors, lawyers, IT specialists, accountants and more.

Management Liability Insurance

Managers are not exempt from mistakes and management itself involves complex commercial risks. This is why it’s nice to have management liability insurance in place. This type of insurance covers your defending and settling claims when a manager or director is faced with legal actions due to claims of wrongful or illegal practices.

Cyber Insurance

In this day and age, cyber insurance is more important than you think. This type of insurance aims to protect your business against cyberattacks. It helps minimise any financial losses to your business, customers, intellectual property and other parties following a cyber breach.

Protect your business from anything that may happen

Manage risks and protect your business as early as now by getting insurance tailored for your business. Our insurance brokers at SK Insure have a deep understanding of the Business Insurance market, offering long-standing relationships with leading insurance companies.

Contact us today to get started.