Insurance reduces your risks and covers your financial losses should an insured risk event occur.
Your business needs insurance to cover risks associated with your liabilities, assets and income.
Insurance does not change the law or reduce your fault – it simply shifts the onus of paying for any liability from you to the insurer.
The type of insurance you need will depend on your business and the industry you’re in.
Depending on your business, there may be compulsory insurance, such as:
- worker’s compensation insurance, if you employ people
- third party personal insurance, for any motor vehicles you own (through vehicle registration)
- public liability insurance, for certain types of companies and professions.
There are important insurances you need to consider, even if it is not compulsory.
Liability insurance protects you in cases where you are found liable for damages to others, such as:
- a third party death or injury;
- loss or damage of property or monetary loss as a result of your negligence;
- damage or loss as a result of advice you gave, or your provision of unsafe products or services.
You should also consider obtaining personal accident and illness insurance so you’re financially secure should any accident or illness prevent you from working.
Read the details on insurance proposal forms and ensure you understand what is included and excluded from a policy.
Consult an expert in the field to help you determine and obtain the cover you need.
For more information about business insurance, visit the Australian Government’s business website