Half of failures by small and medium sized businesses (SMEs) occur after a loss that could have been covered by insurance. The issue was discussed at the Australian Insurance Summit this week and Small Business Victoria called for small businesses to consult an insurance broker. According to insurance experts around 85 per cent of SMEs think they are fully insured but the majority do not have adequate insurance cover, reports startupsmart.com.
“If you’re starting out, working out what to insure against before you’ve even made a profit is hard,” a spokesperson for Small Business Victoria said. “Choose a[n insurance] broker who understands the day-to-day risks of your business. If you do, you’ll get a policy that covers the risks particular to your business.
Key insurance policies for small businesses include professional indemnity; personal accident, illness or disability; buildings insurance; public liability insurance; business interruption and cover for electronic equipment breakdown. Small Business Victoria recommends SMEs buy “insurance from a company normally offering business insurance instead of one selling mainly domestic insurance”. It is also worth considering combined types of insurance such as commercial, shop, retail, industrial, office, trades and business vehicle insurance.
Your needs will also really vary depending on your exact business, so it is best to speak to a professional insurance broker.