So you have decided to start a new business? You have a novel idea or a better way of doing things? What’s next?
Our business advisory director, Nadia Sabaini, has developed a valuable 10-part guide for budding entrepreneurs looking to turn their idea into a reality.
In this guide, Nadia has identified the top 10 actions to consider before embarking on a new business journey. These considerations are invaluable knowledge for start-ups and can help maneuver your business down the right path with the appropriate awareness for the business environment in which you intend to operate.
#10: Necessary and circumstantial insurance options for your business
A key consideration when commencing business is the type of insurance you need before you commence trading.
There are some forms of insurance that are necessary for many businesses such as:
Workers compensation insurance
Compulsory if you have employees.
Public liability insurance
Mandatory for certain companies and usually required under a premises lease.
Plate glass insurance.
Usually required under a premises lease.
Other types of insurance that you should consider depending on your circumstances include:
This is important if you are leasing premises as the landlord is not liable for and will not insure your contents.
Business interruption insurance
If you are renting and the premises are damaged for any reason, there may be a period you cannot access the premises and won’t be entitled to compensation from the landlord.
Management liability insurance
May cover directors liabilities, employment practices liability, government fines and tax audits.
Professional indemnity insurance
Important if you will be acting as a professional advisor in your business.
Products liability insurance
Vital if you will be manufacturing products.
Relevant if you are transporting goods, importing or exporting product.
Motor vehicle insurance
Compulsory third party (CTP) insurance is included in the registration fee but this is injury cover only. It does not cover damage to the other party’s vehicle or your own vehicle. You must insure for these separately.
In addition to the above, there are some other kinds of insurance that you may not have heard of and which could be of interest to you, such as:
Privacy and cyber insurance
Insurance against loss of data or liability due to a data breach.
Intellectual property insurance
Insurance to cover costs of intellectual property claims against you or by you.
Contract liability insurance
Insurance to cover liability or loss arising from third party contracts.
It is important to consider what your needs are and select the right policy and level of cover. You should definitely seek the advice of a broker when sourcing business insurance. A lawyer can also review a policy to confirm if it addresses any specific items of cover that are of concern to you.
The Insurance page of the Australian Government’s Business website can provide more detail on the types of cover available for business.
For more information regarding your start-up journey, download the full guide below or contact us today.
Want to read from the beginning? #1: How to Make a Real Business Plan for Your Start Up
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