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 Importance of Business Insurance for Small Businesses

In any business, risks cannot be ruled out. In case of a small business, even a small risk can make a huge impact on the growth and sustainability of the business. This is more so with respect to finances as small businesses, by their very nature, are devoid of strong financial support.

If you are a small business owner, you need to seriously consider taking business insurance to protect your businesses from unfortunate events that cause financial crisis.

Besides providing financial support during unfortunate events, insurance helps in increasing the credibility of your business among your employees (crucial part of your business) - they feel secured knowing that they are covered under insurance policy.

What Is Public Liability Insurance?

Public liability insurance is a policy that provides insurance to the business against harm to the customers or a third party while on the business estate. The loss may be either monetary or physical injury. This is a very important insurance policy that protects the interests of all those businesses whose gates are open to the general public. The premiums of the public liability insurance are low and affordable for the business. When compared to the loss that the company or the business will have to bear in cases of physical or monetary injury to the customer, the premiums are very low.

Public liability insurance is a protection cover for the business. In the businesses where there is regular public movement in the business premises, there is a chance of danger, especially when there is machinery involved. The risk of injury cannot be eliminated in shopping centers and stores, where the customer may stumble over things or products in display may fall over a customer. In such cases, having public insurance will save a lot of trouble for the businessman. Damage to customer property and theft of customer property is also covered under this insurance.

When Do I Need Business Car Insurance?

If your car or your employees’ cars are used for business, a business car insurance policy can help protect them while they’re on the road. If your business owns or leases any vehicles, a commercial auto policy can help protect them

Here are a few situations where having business car insurance could be helpful:

·         You use your car for pickup or delivery. This could include picking up or delivering supplies, newspapers, or food.

·         You provide a taxi or ride-sharing service.

·         Your vehicles are owned by a corporation or partnership.

Tips for Buying Business Insurance

As you may be starting to understand, we’re a little different than other small business insurance companies. And no matter which small business insurance policy you’re looking for or which of the many business insurance companies you buy from, there are some things all business owners should look for when buying business insurance. The key elements include:

1) Find a Tailored Policy

2) Make Sure There are Affordable Options

What is Small Business Insurance?

Types of Business Insurance

(1) Professional Liability Insurance

Professional liability insurance is to be insured against claims of negligence resulting from errors or failure to perform. Professional liability coverage is not one-size-fits-all. Every industry has its unique concerns which need to be addressed.

(2) Property Insurance

In the event of a storm, fire, or theft, property insurance will cover equipment, signage, inventory, and furniture. It does not, however, cover events of mass destruction, such as floods and earthquakes. If your area is at risk for such issues, you will need to have a separate policy.

(3) Home-Based Insurance

Homeowner's policies do not cover businesses based at home, such as commercial property insurance. If you are carrying on a home business, ask for additional equipment and inventory coverage.

(4) Product Liability Insurance

If your business manufactures products for sale, insurance against product liability is very important. Any company may find itself mentioned in a lawsuit because of the losses caused by their goods. In such cases, product liability insurance protects a business.

(5) Vehicle Insurance

Types of Insurance for Businesses

There are many types of insurance options out there that business owners can get. Insurance helps protect your company from different risks that can come up during normal operations. Choosing what business insurance you need can seem overwhelming, but we’re here to help.

Many business owners start with a Business Owner’s Policy (BOP) for their small business insurance needs. It combines three essential coverage’s:

1. General liability insurance

2. Commercial property insurance

Should I use an insurance broker?

Unless you know what you’re doing – in which case you might be able to find what you need on the internet – the next step is to pick up the phone and speak to an insurance broker.

A good insurance broker Australia will take their time getting to know all about you and your business, so if your first call doesn’t get the response you feel you deserve, try another. After all, if they don’t sound interested when they’re trying to win your custom, what response will you get when you need help with a claim?

On the other hand, it is also important to be 100% honest with your broker. If you don’t tell the truth – or reduce your figures to try and keep the cost down – you will come off worse in the event of a claim.