Are you prepared to sacrifice your business by betting on chance?
When the unexpected happens, it's not who is at fault that matters - it's the future of your business.
Accidents happen but business failure is avoidable
Who pays? With the right insurance, you are covered; but without public liability insurance specifically covering your business, you are on your own.
Public liability insurance covers your consultancy and any other business activities if it is found to be negligent in causing personal injury or property damage to people or to businesses such as your clients and suppliers who interact with you. Unfortunately, and all too often, 'victims' seek compensation for their troubles.
Australian law imposes a 'duty of care' upon certain businesses and individuals including consultants, employers, property owners and suppliers of goods. If you have breached your duty of care and found liable, you may be required to pay for damages that often run to many hundreds of thousands of dollars … or more! And even if you are successful in defending a claim, your legal fees alone may cause substantial hardship.
Business sustainability = Profitability + Protection
Public Liability Insurance cover is a very important measure you can take to protect your business. Business sustainability is just as much about protection as profitability but many business operators are unsure just what insurance they need – and that's where we come in.
Public Liability Insurance for your business must be business specific to protect your business against the unexpected. Why gamble against the odds when Public Liability Insurance is a simple and affordable solution - a small business can be covered for as little as a tax deductible $1 per day.
While your Home & Contents insurance policy may contain cover for public liability, it is generally designed for homeowners or occupiers as a safeguard against personal injury to tradespeople and others providing home services around the house. If you work from home, your policy may well get you off the hook when your dog bites the postman … but what if Fido attacks your best client? Catastrophe! Unless the public liability cover is specific to your business activities.
Other Insurance products potentially relevant to your business …
While you may take every reasonable precaution in running your business, the unexpected can still occur. For instance, have you considered how you would counter a claim for damages if you transmitted a computer virus, trojan or worm to your clients or inadvertently provided them with someone else’s database? Or infringed a copyright, or unintentionally libeled, slandered or defamed a third party in a report or through your advertising or promotional material?
Don’t be caught short through lack of advice …
While Public Liability Insurance cover is absolutely critical, you should not ignore the importance of other forms of insurance for the ongoing protection of your business. Why not chat to us about …
Professional Indemnity Insurance (sometimes known as Broadform Liability Insurance) covers your consultancy or business if it is found to be negligent in causing loss or personal injury to those you are endeavoring to assist or members of the public have been injured while interacting with your business; or if you cause damage to the property of others during the course of your business activities. It is designed to pay your legal costs in defending your business against such claims; and contributes (up to the policy limits) to any financial settlement imposed by a court upon your business as compensation to the suing party.
Property Insurance provides cover for damage to your business assets resulting from a broad range of events such as fire, lightning, water and wind damage, impact, explosion, earthquake, riots and strikes, vandalism and accidental damage. If you work from home and claim depreciation on your computer and other work-related assets, they are not covered by your Home & Contents policy. You may wish to add cover for Burglary and cover for loss or damage to Money; and will almost certainly want to consider Electronic Equipment Insurance to cover your mobile, laptop and other electronic business devices that are lost or damaged away from the home.
Business Interruption Insurance reimburses lost business profits should a disaster close your business. Although not sold as a stand-alone policy, it can be added to your Property Insurance.
Taxation Audit Insurance assists if you are required to respond to an official audit, enquiry, investigation or review of returns lodged with the Australian Taxation Office or similar body.
Cyber Insurance provides cover against cyber-attack … the expenses associated with data breaches, hacking and the theft of client sensitive information, and associated legal costs. Symantec reports that SME businesses are now the key target for hackers; and the most commonly targeted victims are knowledge workers (27 percent) given their access to intellectual property - and sales (24 percent). Cyber Insurance is particularly important if you store sensitive or non-public information about clients on your computer, server or in your paper files.
Directors’ and Officers’ Liability Insurance protects directors and officers of a company against their [non-fraudulent] actions should their decisions or actions affect the profitability or operations of the company; whereas Associations Liability Insurance is necessary to protect an association against legal liability incurred through the conduct of the activities of its employees and volunteers, or resulting from the provision of its services. D&O Insurance is particularly important if you are an independent member of a Board or advisory body.
There are of course many other forms of insurance that can be specifically tailored to various business activities. Our role as an insurance broker is first to alert you to the possible issues your business may face … and the forms of insurance protection available to you; and then to source the right insurance at the right price.