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Business insurance to consider

Business insurance to consider

Make sure you’re aware of your insurance responsibilities when running a business.

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.

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This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.