Owning a business comes with a lot of responsibility and you need to ensure that your assets are protected. In this blog we review 4 common small business risks – are you underinsured?
The experienced team at Insurance Web understand that every small business is different and needs individualised coverage.
We also realise that every penny counts, and some business owners might not have inclusions in their insurance policy in an attempt to cut down costs. Keep reading to find out a few areas of coverage that small business owners should check.
For further information on your insurance policy, contact Insurance Web on 1300 956 230 or enquire online.
1. Cash in Transit
Even though many transactions occur online these days, there are still numerous businesses where employees are transporting cash or company goods to and from their place of work such as delivery drivers.
Generally, having cash in transit insurance means you have some protection for company money if it is being carried by the business owner or their employees whilst away from the workplace.
2. Recovering from Disaster
Australians are resilient in the face of disaster, but in an attempt to lower insurance premiums, some owners might not insure their assets or properties for their true value.
It’s important for businesses to check their assets are covered in their entirety, so that if they can’t operate due to a natural disaster, they are able to rebuild and hopefully return to their previous operating capacity.
Having coverage which only accounts for a percentage of the value can have an extremely detrimental impact if all assets are lost.
Most people do not understand something the insurance industry calls the “Average clause” sometimes referred to as the “Co-Insurance clause” or “Under Insurance”.
This clause effectively works out the proportion of the risk you have insured for and will pay only that proportion of any valid claim considering you to personally be the insurer of the other portion ‘the co-insurer’, even in a partial loss. It is vitally important that you understand this, as being under insured even in very large businesses can quickly lead to business failure or, at best, financial stress.
3. Tax Audits
If you’re audited, your business might encounter unexpected costs, but you might not realise you can be covered for these situations.
Having insurance which includes tax audits can reduce the cost of professional fees of accountants during the investigations.
4. Machinery or Equipment Failure
Every business has different equipment which allows them to carry out their day-to-day tasks, but many business owners might not consider insuring those items to cover the cost of fixing or replacing them if they break down.
If your equipment fails, that contributes to loss of stock and/or service which in turn affects your bottom line. Having breakdown covered by your insurance means that any failure won’t cost you or the business financially. Furthermore, your standard business package insurance will not cover the loss of trading income as a result of a breakdown. It is best to speak with your broker about the extra coverage for loss of trading income and additional increased costs of working if a breakdown takes you off-line.
4 Common Small Business Risks – Are You Underinsured?
The friendly and experienced staff at Insurance Web can work with you to offer tailored advice and packages for your company.
To find out more about insuring your small business, contact Insurance Web today on 1300 956 233 or enquire online here.
Insurance Web are your local insurance experts. Known for our simple processes, cost-efficiency and trustworthy staff, we’ll help you get the right business insurance cover so you can trade confidently and securely right now!
Do you need to update your insurance program or looking to launch a new business? Call Insurance Web today, or submit an online enquiry here.
