When you're going out alone for the first time, there's lots to organise and even more to pay for. While it’s not always at the top of an entrepreneur's To-Do list, ensuring you have the right insurance coverage is critical to startup success. Without it, you may struggle to recover and remain viable after an accident or incident. So, what insurance do startups need? Allow me to explain.
Get the Business Insurance Basics in Place
As insurance brokers, we often advise startups to take out public and product liability insurance. Public liability insurance covers you for third-party injuries or property damage caused by your negligence. Product liability insurance can help protect your business if a person or their property is harmed or damaged by a product you've manufactured or supplied.
Then there’s property insurance, which is designed to safeguard your assets (think plant and equipment, furniture, ICT devices and more) against property damage, weather events, machinery breakdown and theft. Pretty essential stuff.
Insurance for Businesses with Employees or Contractors
If you intend to hire employees or contractors, you’ll need to take out workers' compensation insurance. This insurance will help protect your business from losses resulting from work-related injuries and illnesses.
Should your employees need to use their own or company vehicles for work related purposes, you'll also want to explore a comprehensive motor insurance policy.
Seeking Specialist Cover for your Business?
Depending on the nature of your enterprise, it may be wise (or essential) to take out specialised cover. If you provide professional services or advice , we recommend professional indemnity insurance to help protect against claims related to errors, omissions or negligence.
Cyber insurance is fast becoming a must-have too, particularly for businesses that handle and store customers' personal data. Cyber-attacks and data breaches are now a daily occurrence – the Australian Cyber Security Centre received 94,000 cybercrime reports in FY2023 – and they can be disruptive and damaging, particularly for organisations that lack the resources to remediate them.
Engage a Business Insurance Broker to Help
If you’re a new business owner baulking at the cost of insurance, we get it. But having coverage in place is part and parcel of operating a sustainable business, and reduces stress for you as a business owner! Many insurers offer business packages that incorporate all the common policies we’ve touched on. A good business insurance broker can help you source solutions that are competitively priced and compatible with your business needs.
If you need help to determine the type and level of cover that’s right for your new enterprise, contact our business insurance brokers via the form below for a free insurance review and consultation.
