No matter how great you are at business, there are always things beyond your control, and some have the potential to undo all your good work. Acts of mother nature like fire and floods, acts of individuals like theft and damage, legal issues of liability or indemnity; the harsh reality is that a single event could be devastating for any small business.
Unless you hold the right business insurance.
Business insurance comes in a few main forms. There’s public liability insurance, which guards against cases of business negligence. There’s professional indemnity insurance, which protects specialist advisors and service providers. There’s also general business insurance, a sprawling category that more or less covers everything else, including assets, finances and team members.
What forms of business insurance are applicable to you? How do you ensure that you are appropriately covered? And how can you earn Qantas Points in the process? We explain this all below.
Does a small business need insurance?
Small business insurance can be an area of confusion for many business owners. If you’re a sole trader that works from a laptop in your home office, you might wonder whether you require any small business insurance at all. While it’s true that the need for insurance tends to increase with the size and complexity of a business, it’s also true that even the smallest of small businesses might need to be covered as a matter of law.
If you’re the sole trader above, it could be that you offer services that make public liability insurance compulsory. If you drive as part of your work, you’ll also need to ensure you have third-party personal injury insurance for your vehicle (at a minimum).
Every business will have different insurance needs, so it’s wise to speak with experts like BizCover to ensure you’re appropriately covered.
What insurance is a business required to have?
It can be difficult to know what you need to be covered for, what you should be covered for, and the insurance that might count as a ‘nice-to-have’.
There are three forms of insurance that are listed as ‘compulsory’ by the federal government:
Workers compensation insurance: For any business that has employees.
Third party personal injury insurance: For any business with vehicles (though this is often included as part of the vehicle registration fee.)
Public liability insurance: Compulsory for certain eligible businesses.
Then there are forms of insurance that may be compulsory due to business dealings. A subcontractor on a construction site may have to tick certain insurance boxes as a matter of policy, or a stall holder at a local market may need to show proof of public liability insurance to secure their spot.
Finally, there are forms of insurance that aren’t compulsory, but represent wise investments – the strategic purchases that reduce the risk associated with your business and protect you against potentially damaging events. These insurances might cover business assets, business finances, team members and owners, or customers and suppliers.
There are insurance products that cover any and every business risk: loss of income, extreme weather, cybercrime, goods in transit, management liability and more. Finding the right insurance mix for your situation is about identifying the risks associated with your business and ensuring that you’re appropriately protected from them.
What are the main types of business insurance?
Given the breadth and depth of business insurance, how does a business owner work to understand the coverage that might be suitable for their business? BizCover groups its business insurance products into three main categories, which can be a great place to start.
Public Liability
If negligent business activities result in a customer, supplier or member of the public being injured or sustaining property damage, your business could face serious legal action. As a small business owner you should be doing all that you can to ensure the safety of everyone associated with your business – in fact you have a legal responsibility to do so – but no business is immune from mistakes, and some mistakes can be far more costly than others.
For many small organisations the costs associated with facing a public liability claim would be enough to close the business, which makes public liability insurance a critical consideration for many owners. Most policies offer coverage that extends into the millions of dollars, which can save a business if the worst were to happen. BizCover public liability insurance covers over 6,000 occupations, comes with a price promise, and offers flexible annual or monthly payment options.
Professional Indemnity
If you offer professional advice or services as part of your business, you may be liable for claims of negligence or breaches of duty. If a client alleges you made a mistake, overlooked information, misrepresented a fact, or even that they misinterpreted you, and that this event resulted in a financial loss, they could take legal action to recover that loss.
Whether or not the allegation proves to be true, professional indemnity insurance aims to protect your assets, finances, and perhaps most importantly, your reputation. Bizcover’s professional indemnity insurance pays for your legal costs (including judgements and settlements) up to the limit of your policy.
Business Insurance
Business insurance encompasses all other small business insurance products beyond the two stated above. Some of the most common types of business coverage include:
Premises, stock and asset insurance
Business interruption insurance
Personal accident insurance
IT and cyber liability insurance
Management liability insurance
Employment practices liability insurance
Tax audit insurance
Business insurance varies greatly from industry to industry, which can make shopping for cover a confusing prospect. Happily, BizCover has your back, breaking down the recommended insurances industry-by-industry.
Earn Qantas Points while insuring your business
What’s better than protecting your business with the right small business insurance? Earning Qantas Points while you do it. You can earn up to 10,000 Qantas Points – one point for every $1 spent – when you secure business insurance through BizCover, trusted specialists who already offer small business insurance to over 160,000 small businesses across the country.
How do you do it? It’s as simple as 1, 2, 3.
1. Join
Join Qantas Business Rewards free through BizCover.
2. Purchase
Secure your BizCover business insurance policy, and within 24 hours you’ll receive an email confirmation confirming your eligibility for bonus Qantas Points. From there you simply follow the prompts.
3. Receive
After you’ve held your BizCover policy for three months, the points will be automatically debited into your Qantas Business Rewards account.
Important information
A business must be a Qantas Business Rewards member to earn Qantas Points for their business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for BizCover customers. Membership and Qantas Points are subject to Qantas Business Rewards Terms and Conditions. Subject to any applicable special offer alterations, BizCover customers will earn 1 Qantas Point for every $1 spent on all new business insurance policies, up to a maximum of 10,000 points per policy. Qantas Points for business are offered under the BizCover Terms and Conditions. Any claims in relation to Qantas Points under this offer must be made directly to BizCover. Qantas Points will be credited to the member's Business Rewards account within 100 days of purchase. A customer is only eligible to receive points if they have purchased directly through BizCover (not through a referral or white label partner) and not used any discount or promotional code in making the purchase.
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769
Qantas would like to acknowledge the Traditional Custodians of the local lands and waterways on which we live, work and fly. We pay our respects to Elders past and present.