The importance of business insurance
Business owners never know when that business insurance premium they have been diligently paying will be worthwhile. For CVW Accounting an example of that time was October 2019.
It was a cloudy, windy and wild Perth morning when, without warning – and luckily without damage to anyone or anything else – the CVW sign on the verge of Lord Street toppled to the ground.
Inside, and completely unaware the CVW Accounting team diligently completed their work until a client arrived and said, “Your sign has fallen over.”
Upon inspection there was the sign, still attached to the pole lying on the ground.
What happened next?
We contacted the insurance company to start the business insurance claim process. If you have ever had to complete a claim, you will know it is a detailed and often time-consuming procedure.
Jo followed the claim process to the letter in order to have the sign replaced as quickly as possible.
It actually involved more people than expected to have a simple sign replaced but that’s okay because the business insurance covered all costs.
The pole was recently re-installed, with power connected and the sign – that was in fact undamaged in the fall – was replaced to its position on the verge of Lord Street.
Peace was restored to CVW Accounting-land and all is right in the world.
Plus, it’s also a really good example of why it is important to have business insurance.
Choosing the right business insurance
The right business insurance means your exposure to risk will be minimised and your business will be protected if something was to happen.
When it comes to choosing insurance for your business take the time to assess each type of insurance to determine whether it is something you need for your business. For example, do you need business asset and business owner’s insurance? What about insurance to covers employees, customers and earnings?
Some insurers offer policy packages tailored to suit your business.
Common types of insurance
The information provided here is general in nature and should not replace professional financial advice. We recommend you speak with a licensed insurance broker, business advisor or insurer for detailed advice.
Compulsory insurance
Some forms of insurance are compulsory for Australian businesses. These include;
- workers’ compensation
- public liability insurance
- third party personal injury insurance
The industry you operate in may also have specific insurance requirements before a business can operate.
Personal or loss of income insurance
Another type of insurance to consider is personal or loss of income insurance – there are handful of types. For example, some are investment-type funds which involve contributions over a period of time, and you get back your investment plus interest earnings at the maturity date.
Others insurance policies cover things that could occur, such as:
- income protection or disability insurance
- life insurance
- total and permanent disability insurance
- trauma insurance
- business interruption or loss of profits
- management liability
- employee dishonesty
- stock, products and asset insurance
If you have a business that includes significant business assets i.e. property, stock or products that you can’t afford to lose, then some of the following insurance options also need to be considered;
- building and contents
- burglary
- deterioration of stock
- electronic equipment
- farm insurance
- goods in transit
- machinery breakdown
- tax audit
- property in transit
Accident and liability insurance
This type of insurance protects you if you’re liable for damages or injuries to another person or property.
Technology and cybercrime insurance
Lastly, based on the type of business you operate, it is wise to think about technology and cybercrime insurance to cover electronic equipment and cyber liability.
The moral of this tale
You never know when a windy day is going to test your business insurance cover.
If you have questions about insurance or for detailed advice, please contact the CVW Accounting team today – we are happy to help!
