When you’re running a business, you’re responsible for a lot – including financial liability if something goes wrong.
You can prepare for this ahead of time with business insurance. The type of insurance you need will depend on your business type, structure, size and industry.
Some forms of insurance may be compulsory and in many cases are tax deductible.
Here are some common insurance types to consider.
Workers' compensation
This is compulsory if you have any employees. It helps cover you if your business has employees who become sick or injured due to work. It also helps pay for their wages, medical expenses and rehabilitation costs.
Public liability
If you or your business is found liable in causing loss or damage to property, or death or illness to a person, this will help protect you financially.
Motor vehicle insurance
If you own or operate a car for business purposes, you’ll need compulsory third-party insurance in case of any medical or compensation costs caused by the use of your car. Other vehicle insurance types include third-party property damage, fire and theft insurance, and comprehensive insurance.
Personal accident and illness insurance
This may include income protection or disability insurance, which may cover your income if you become unable to work. It may also include trauma insurance if you’re diagnosed with certain life-threatening illnesses, life insurance in case you die or become permanently injured, or become totally and permanently disabled before retirement.
Building and contents insurance
If your building or belongings are damaged or destroyed, this type of insurance may help you pay for it.
Business interruption or loss of profits
If property damage or fire stops you trading for a period of time, this insurance can help.
Professional indemnity
This is a type of insurance that helps pay for negligence, omission or mistakes you may make when you’re providing professional services to customers.
Product liability
If you manufacture products, this insurance can help cover you if they injure or otherwise harm anyone, for instance if they’re faulty.
