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Do You Have Enough Insurance For Your Small Business?

  • Adroit Insurance and Risk
  • June 29, 2022

An insurance policy is crucial for small businesses to survive. As a small business owner, adequate insurance means your company is covered for unexpected events that could destroy all your dreams. Importantly, you need enough of the right kind of insurance for your particular company, organisation or small business to be properly protected.

Unfortunately, underinsurance is still a serious issue for small businesses in Australia, with estimates suggesting around 24 per cent of sole traders and 12  per cent of small businesses carry no insurance policy whatsoever. 

This is despite most small business owners agreeing that a business liability claim could dry up their cash flow, causing them to lose revenue or putting their company out of business.


Insurance Should be a Small Business Priority 

As a small business owner, starting up and running your company or enterprise means addressing many tasks such as buying IT equipment and stock and hiring staff. It’s essential to prioritise your tasks so you don’t overlook the most important one – a small business insurance policy – or the consequences could be disastrous for your company. 


What is Enough Insurance?

A small business insurance policy should adequately cover your assets and be accurately valued. As a small business owner, you would undoubtedly have receipts for purchases such as plant and equipment, computers and stock. But it’s important to ensure replacement valuations are accurate for assets with a depreciated book value. For this, you may need a professional valuer.


Prior Preparation and an Insurance Policy Pays Off   

Too often, small business owners are underinsured because they think accidents and losses can never happen to them, so they fly by the seat of their pants. Suppose your business is the one that suffers a disastrous event. In that case, you’ll be forever grateful to your Adroit Insurance valuer and broker for helping you keep yourself and your small business or company safe by steering you to the right policy. 

Another reason small businesses are either not insured or are underinsured is that they’re so busy operating the company that they can’t find the time to have the valuations done. If this is you, do yourself a huge favour and talk to your Adroit broker today!

Having the right insurance policy that is adequate for any unexpected event can help you get back to work running your business without having to borrow from the bank, use your savings or go broke.


What Kinds of Business Insurance Do I Need?

There are plenty of insurance covers available, but the following five are the least you should carry to protect yourself and your small business or company. 

  • Public Liability Insurance 
  • Small Business Insurance 
  • Professional Indemnity Insurance
  • Business Interruption Insurance
  • Workers Compensation Insurance

This list is not comprehensive, nor does it consider any specifics concerning your company, but it provides an overview of the various commercial insurance plans on offer.

Public Liability Insurance 

This policy protects you from third-party claimants. The policy can help pay for the expenses should a third-party experience a loss because of you or your employees’ actions. Proper Public Liability cover can also cover legal defence costs if the injured party seeks legal action.

Small Business Insurance 

This policy can be in the form of a group of several small business insurance coverage options rolled into one.  

Professional Indemnity Insurance

This insurance is vital if your small business or company offers services or professional advice to clients. Professional Indemnity insurance can protect you and your business against liability should a third party incur losses allegedly due to your breach of duty of care, action, or omission.

Business Interruption Insurance 

This insurance policy is crucial if an unexpected insured event causes you to be unable to operate for an extended period. The insurance may pay for your company or small business’ fixed costs and provide income.

Workers Compensation Insurance 

This cover aims to protect your staff from illness or injury while they are working for you. Workers Compensation Insurance is mandatory in Australia if you employ workers. Talk to your Adroit Insurance broker for more details.


Think About What Would Happen If You Lost Your Business  

Have you ever sat down and thought through how you’d cope and how long it would take to get your small business operational again, if you had to close due to storm damage or a major fire? It’s essential that you consider this, and even better if you have the help of one of our Adroit Insurance & Risk brokers. 

For instance, imagine if your small business is a manufacturing factory. A fire could mean a year to rebuild your premises and buy and install new equipment. In this case, adequate business interruption insurance can help you generate income. Consequently, your company’s survival depends on adequate business insurance to meet your commitments and pay employees and suppliers. 


Talk to Adroit Insurance & Risk

At Adroit, our experienced and committed brokers know the key to helping to protect your small business or company is with the right insurance cover that is adequate for your needs. We can thoroughly review your small business’s exposure to risk, and we’re confident the insurance coverage we recommend can help you thrive and survive a disastrous insurable event. Contact us today at 1300 MY ADROIT, 03 5221 6644, or email geelong@adroit.com.au.

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