Which Types of Small Business Insurance Are Right for You?

When you’re a small business, you understand the importance of having insurance. Money is often tight, so ensuring your business has the correct insurance is critical. However, trying to decide between insurance plans and sifting through all the varieties of insurance can often be overwhelming. Finding the balance between what you need and what will keep you covered due to an unfortunate event is tricky. Small businesses are often more likely at risk of unforeseen issues and usually have regular equipment breakdowns or occasional communication mishaps.

Steadfast Eastern Insurance Brokers have various insurance plans tailored to you and your business needs. We understand that each small business varies in how many employees they have and the level of risk that they’re surrounded by. We’ve broken down our insurance plans that most likely apply to small businesses and have given some examples to help with a place to start.

Business Interruption

Business interruption insurance will keep your business covered from unfortunate events. Having a small business can often lead to random events that wouldn’t usually happen otherwise. For example, if you’re in the hospitality sector, you are much more likely to need machinery breakdown insurance than a small clothing store. As business interruption insurance also includes machinery breakdown, Steadfast Eastern Insurance Brokers will cover the stock cost in cold storage and fridges. Other businesses that can benefit from business interruption insurance are those in states or locations around Australia where the weather is significantly impacted, for example, Queensland, where flash flooding is much more prevalent.

Business interruption will not only ensure your business from unfortunate events but will help to pay the ongoing costs, protecting the profit margin until your business is back on track.

Property Insurance

Property insurance will cover buildings stock, contents and customer goods against fire or other perils like water and storm damage. Property insurance also covers burglary insurance, money insurance and glass insurance. Our insurance brokers will help with the coverage you need for your business.

We recommend property insurance to those who have a brick-and-mortar store. Those who are small businesses but solely complete their tradings on an online site will benefit from cyber insurance.

Professional Services Insurance

For those in the professional services industry, whilst it varies, we classify them as follows:

• Accountants
• Architects/Engineers
• Business Brokers
• Education Professionals
• Financial Planners
• IT Contractors
• Immigration Consultants
• Investment Brokers
• Market Research
• Mortgage Brokers
• Lawyers
• Real Estate
• Recruiters
• Scientists
• Travel Agents

These more minor independent professional services benefit most from having professional services insurance. Professional services insurance protects you from the potential mistakes that can often happen. Errors can and will occur while you do your best to only provide the best for your customers and employees.

Suppose someone in relation to your business suffers financial loss, personal injury or property damage from an act, error or omission from the advice or service you’ve provided. In that case, you’ll be covered with professional services insurance. An example of this could be something as simple as giving someone with the wrong accounting information on their bank statement.

Public Liability Insurance

For the majority of small businesses, public liability insurance isn’t mandatory. It is, however, recommended for all companies. How and when accidents happen is entirely unpredictable. The cost of not having public liability insurance can end up being much more expensive than those who do.

For smaller businesses, if you have any spaces within your business that could lead to potential accidents, having public liability insurance is one that will benefit you. If you have stairs, uneven flooring, trip hazards and serve alcohol, public liability insurance will protect you from a claim that any public member will attempt to sue you for. Those within the hospitality sector have a much higher need for public liability insurance.

Technology Startup

Technology startups get us excited. It’s the start of something new, and we meet all kinds of people with fantastic ideas. Due to technology startups coming in various sizes, externally financing is usually needed in the initial stages of development. Banks are generally apprehensive about providing funding to a technology startup due to the lack of credit history. Although external financing is a great way to get started, it also comes with a level of risk. Insuring your small technology startup will leave you having the peace of mind that if funding doesn’t work out in the long run or investors pull out at any time, you’ll be covered. We consider a technology startup to be specific in its nature. Our experts have been involved with various startups across Australia for 15 years.

If you’re a small business and are still unsure how Steadfast Eastern Insurance Brokers can help you or would like a more tailored insurance plan, get in touch with one of our friendly insurance brokers, and we’d be happy to help.