Insurance 101 – turning insurance speak into human speak

What sort of insurance do I need if my business runs from home?
March 27, 2018
Why small businesses use an insurance broker
May 2, 2018

This Steadfast partner article first published on Kochies Business Builders

Understanding insurance policies and whether they properly cover your business, including current and future risks, with a focus on the importance of seeking the expert advice of an insurance broker.  

The world of insurance can be complex – sure, it’s an important world because if you get it wrong the results can be devastating. But that doesn’t mean it has to be confusing.

If the sheer choice of policies available to you as a small business owner, and the jargon that comes with it, has left you carrying an insurance glossary with you everywhere you go, you need to speak to Steadfast. Our brokers don’t get extra points for big words or fancy policies, we just get a kick out of helping to protect you, your staff, and your business.

SO THERE ARE CERTAIN SITUATIONS IN WHICH A SMALL BUSINESS OWNER IS
REQUIRED BY LAW TO PURCHASE INSURANCE.

Remember, a Steadfast broker works for you, not the insurers. We’re here to take the time to understand the risks you and your business face, then set you up with the most appropriate policies for your individual needs.

Begin with the compulsory, then the highly recommended

So there are certain situations in which a small business owner is required by law to purchase insurance. There are also policies that come highly recommended, depending on your specific line of work. Here are the top candidates to consider.

  • Workers’ compensation insurance: If your business employs people and one of your workers is injured or falls ill on the job, the law requires you have access to multiple levels of care – including first aid, compensation for additional care, and rehabilitation to return to work. This policy provides coverage for all of this and, most importantly, protects your business’ biggest asset: your team.
  • Third party person injury insurance: If you own and operate a company vehicle, this covers claims made against you for any personal injuries that arise from the use of that vehicle. This is sometimes included in the registration fee, but err on the side of caution and check it out first.
  • Liability insurance: While this one isn’t legally required, you need to give it some serious consideration as it protects your assets in the case of a lawsuit. Dive a little deeper and there are several different types of liability insurance to think about, including public liability and product liability insurance, but your broker will help to determine if they’re relevant to you.
  • Professional indemnity insurance: Again, it’s not a compulsory one but it’s particularly important for service providers who offer advice to their customers – if that advice turns bad, this policy will help cover any damages that arise from a claim. It will also help protect your business from any liabilities that arise as a result of breaching a contract with a customer or making a simple mistake in the course of your business.

Food for thought

In addition to the above, there are several types of insurance that work to protect your company’s physical assets and property, particularly in the face of fire, earthquakes, floods, malicious damage and more. If you’re seeking extra cover for your business’ electronic devices and data, there’s a certain type of property insurance that will sort that. Add to that list goods in transit insurance if you often ship products, or burglary insurance if your company’s premises aren’t regularly attended.

The list goes on and we know it can be tricky to determine what’s right for you – so let us do the legwork for you, leaving you to focus on running your business. Your Steadfast broker will do the research, manage the administration when you need to claim, and make sure you’re only covered for what makes sense for you and your business, both now and in the future.