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Insurance is important for all Queensland businesses, but it is the small business owner who often has the most to lose by not being insured.
Whilst a large business may be able to absorb losses in the hundreds of thousands, and potentially millions, a small business can be crippled by much smaller losses.
It is for this reason that having the right insurance is so important for a small business.
In this guide we will be looking at small business insurance in Qld.
What Is Small Business Insurance?
There are many different products and policies which fit into this category, and ultimately they are all designed to protect a small business from the various financial risks that they face.
The areas we’ll be covering in this guide are ‘the four Ps’:
- Public Liability
- Professional Indemnity
- Property Cover
- Personal Cover
Public Liability Cover
Public liability is really the core of any small business insurance policy, especially if your business involves any sort of direct contact with the general public.
You can read more in our guide titled ‘What is Public Liability Insurance‘, but essentially it is a form of insurance designed to protect you from the financial consequences of negligence which causes property damage or personal injury to others.
For most Qld small businesses this form of insurance will be optional, but there are certain business types such as licensed electrical contractors where public liability is mandatory.
Professional Indemnity
In some respects professional indemnity is similar to public liability, but instead of covering you for negligence causing physical damage or injury, it covers you for negligence which results in a financial loss for another person.
If you provide professional advice to a client and that advice proves to be negligent, resulting in a financial loss for your client, you could be liable for that loss.
This is where professional indemnity kicks in for a Qld business, and can cover the costs of any such claim against you or your business.
Property Cover
Here in Queensland we are subject to a variety of risks relating to natural disasters, and therefore it is vitally important to properly protect your business property.
Fire, storm and flood damage can all wreak havoc on a business, not to mention the risks of theft and burglary.
All small businesses should ensure that their property is properly insured, including full flood coverage where appropriate.
A business can protect its property through a range of separate cover types including theft, glass, money, employee dishonesty, general property, stock, contents and of course building insurance if you own your own premises.
Personal Cover
Most small business owners in Qld rely on their own ability to work to ensure that they can continue earning a living.
Whilst owners of larger business may be able to step away from the day-to-day operations for a few months or a few years without affecting their income, most small business owners do not have the same luxury.
For this reason it is important for a small business owner to protect their own ability to earn an income in the event that they are unable to work.
Income protection insurance can pay a monthly benefit to a business owner in the event that they are unable to work for a period of time due to injury or illness.
This can allow you to keep paying your personal bills and looking after your family with the income protection benefits, whilst keeping your usual wage within the business to pay a replacement worker or to simply prop up the business until you are able to return.
Other forms of personal cover to be considered include TPD, trauma and life insurance.
Other Small Business Covers
Whilst the various forms of insurance we have detailed above will cover most risks within a small business, there are other forms of cover that some businesses may benefit from.
Some of these additional forms of cover include business expense insurance and business interruption insurance, both of which are designed to protect you financially in different ways.
To ensure your small business is truly protected the best option is to speak with a qualified business insurance broker.
We have access to a number of specialist brokers and advisers located right here in Queensland who can help small business owners with all of their insurance needs.
To obtain a quote on your insurance please complete our online quote request or call our Brisbane office on 1300 542 245 to speak with us directly.