In Australia home-based businesses are on the rise. Every home enterprise will require business insurance similar to those of small businesses to run it smoothly and efficiently. The insurance should be tailored to meet the needs of your business. There are so many reasons for getting the right cover.
Many business owners believe that their enterprise is covered by home and contents insurance. However, this is not the case. In reality, no other policies will safeguard your business against any loss or damage even if you run your business from home. However, the type and level of cover will depend on your business activities. If you work in a field where you give professional advice to your clients, you can’t ignore the importance of professional indemnity policy for your home-based business.
Another reason for getting insurance is the very fact that personal injury or disability can affect your income temporarily. For a sole-trader, the policy serves as a back-up for paying your bills while you recover. If you have employees working for you, getting a WorkSafe injury insurance is mandatory in all states of Australia. When you manage a business from home, fire and other perils that may cause damage to your home can also ruin your business equipments or valuable data. Unfortunately, the home and contents insurance will not cover against such damages.
Theft is yet another increasing problem in the country. You can protect your home from burglars to an extent, but 100% security of your property cannot be guaranteed. If your business sells goods, they need to be transported to your customer. Loss or damage can occur anytime while in transit. Businesses that are involved in online selling are a great example for this. In some cases, you might need to travel for work purposes, and your vehicle must be insured for third party injury liability. For businesses related to the food industry like catering services, insurance is necessary to cover the cost of perishable food items in the event of a power failure or refrigeration problems.
Depending on the type of business you run, you might need to get cover against third party injuries which may usually occur at your place or your client’s place. If any claims arise, you will not be able to afford the legal costs. When you consider the fact that even home enterprises are facing serious risks every day, the significance of business insurance cannot be underestimated.
