No matter how careful a business is, some risks and circumstances are out of its control, which is why getting business insurance is crucial. It can protect you and your company from being in a tight situation and losing your assets, from which can be difficult to recover. However, there are many different policies you can choose from, so it’s crucial to understand the coverage your business needs and the policies that can accommodate that.
The good news is that by asking yourself a few questions, you can find out the kind of business insurance you need to protect your assets, your team, and whether any storm you may encounter. Here are three questions to ask yourself when choosing a business insurance policy:
1. What are the Potential Risks My Business Can Face?
Consider the nature of your business and what you need to run it. Do you offer specialist advice, professional services, or a product? Do you have physical premises, do you operate online, or a mix of both? How do you interact with your customers: do they visit you, or do you go to them? What are the technology, equipment, and utilities you need to operate your business successfully? Lastly, what kind of staff do you employ, and how many are on your payroll?
Once you lay out these details, you can clearly see the scenarios where things could go south and adversely affect your business. For instance, a staff member makes a mistake or was negligent when performing a service or giving advice, eventually harming the customer. In another scenario, your website was hacked, and the hackers are holding your customer data hostage. These are some of the many situations you can face, so it is essential to reflect on what could happen to your business, no matter how unlikely.
2. What are the Types of Business Insurance Policies?
After understanding the risks and scenarios that threaten your business, it’ll be easier for you to choose a business insurance policy that gives your business the protection it needs. Business insurance may even be a requirement depending on your profession, particularly if you’re a member of an industry body or organisation.
There are many types of business insurance policies. Public liability insurance is essential for retail shop owners since it can shield you and your business if a customer, supplier, or any other individual claims you have injured them or damaged their property due to your negligent business activities.
Product liability insurance is helpful for businesses that sell products. It protects you against personal injury or property damage claims because of the products you sell or supply to your customers. Business interruption covers financial loss due to an interruption to your business as a result of an insured event, like a fire. Be sure to speak with a Gold Coast insurance specialist to determine the policies your business needs the most.
3. How Much Insurance Do I Need?
Insurance policies aren’t a one-size-fits-all solution, as each business has its risks. For this reason, it’s prudent to assess your business and figure out how much coverage you need. For instance, if you are legally required to buy business insurance, ensure that you have an adequate level of cover.
If you frequently deal with contracts, ask if there are minimum levels of insurance required. Consider the cost involved if someone files a claim against you and you have to battle it in court. Lastly, review your business assets such as your property, contents, stock, and equipment and total them. Find out how much it would cost to replace all of these, which will help you determine the amount of cover you need.
Looking for the right business insurance policy can be a challenging task. However, by asking yourself these questions and working with a reputable insurance broker, you’ll find a policy that comprehensively covers your business and protects you from expensive claims.
New Wave Insurance is a team of Gold Coast insurance specialists that can help you find the right insurance for your assets, such as your business and vehicles. We’ll do all the heavy lifting for you, negotiating on your behalf to find the perfect policy that meets your needs. Book a free 15-minute insurance consultation with us today!