Insurance is a vital aspect of your business operations. It is especially so since it can protect your public image and prevent bankruptcy caused by compensation suits. Below are some things that you should know about business insurance. Hopefully, this article will help you when taking and managing business insurance covers.
1. Know the Compulsory Covers
In Australia, workers compensation insurance is mandatory if your business employs permanent or casual employees. The cover benefits the business and its employees since injured employees do not have to sue their employer. Once they recover, they can continue working as they await insurance compensation. Some professional associations might compel their members to take specific insurance covers. For example, a healthcare workers association could ask its members to take malpractice insurance.
2. Consider Customising Your Insurance Covers
Ask your insurance provider to customise your insurance cover to suit your business needs. For instance, you could ask the insurer to increase the insurance limits if you have many employees or the workplace contains numerous hazards. Alternatively, you could increase the number of risks that the insurance covers.
For instance, when taking property insurance, you could request the insurance company to include items in storage. Some insurance companies will combine several policies into one. For example, they could combine business owner's policy and public liability insurance. It helps reduce the annual premiums and ensures you have an easy time managing the cover.
3. Update Your Business Covers
Here are several reasons you should update your business insurance:
- When you increase or reduce your workforce. Your insurer should adjust your premiums to reflect the new changes.
- Loss of wages is a significant consideration when calculating compensation claims. Therefore, you should inform the insurance company when you adjust your employees' salaries.
- There are instances when you would need new risks included in the current insurance cover. For example, you would want to include flood and political violence damages in a property insurance cover.
- If you change your business operations, you might need additional coverage. For example, you could need product liability insurance if your business begins to produce goods.
4. Work With Reputable Insurers
Conduct background research and consult with your insurance agent to identify the best insurance companies in your area. Typically, your insurance provider should specialise in your industry. It guarantees that they understand the risks the business is exposed to. Additionally, the insurer should have a friendly and effective claims filing process.