Continuing on from our last blog, the Insurance Council of Australia estimated that 70% of businesses which are currently underinsured will never recover from a major legal claim. Meaning if you don’t have the right cover in place to protect you in the case of a claim, your business has a 70% chance of going under. Choosing the right insurance is the best way to make sure that your business is fully protected. Here are the remaining 2 of the 5 questions you need to ask yourself when considering your insurance levels.
Do you deal with customers and other people?
Dealing with third parties can expose your business to a multitude of risks. Most businesses will require Public Liability Insurance. This means if someone is injured on your premises or in the place where you are performing your service you are covered for the potential medical bills, rehabilitation costs, aftercare, or loss of income that is incurred as a result if you are found liable for the event. Public Liability Insurance also covers property damage to third party items. This can include repairs and replacement of the loss. It is considered your ‘duty of care’ to ensure that your place of business is safe for those visiting and public liability will cover you in the case that it has not been.
You’re an independent contractor right?
If you are a contractor we bet you don’t get sick leave or personal days! Personal Accident and Illness cover makes sure that if you suffer a loss of income because you get sick or injured, you will have a portion of your income paid out to you regularly to keep you afloat whilst you are off. This is important as contractors are not always entitled to Workers Compensation Insurance.
Some stuff you might not be thinking about
Tax Audit Insurance, we bet you haven’t really considered that as an ‘essential’ part of your insurance plan. But having the ATO come in at any time and request a thorough tax audit can mean many unplanned and unbudgeted hours for your bookkeeper or tax agent to complete. Prices can shoot through the roof and set you back financially. Sometimes it’s just better to be safe rather than sorry and Tax Audit Insurance is a great option for this.
If you think that getting good insurance means getting a whole bunch of quotes and choosing the cheapest one, think again. It’s all in the policy wording. If you don’t understand your policy wordings you’ll need to get someone that knows about them to look over it. Insurance service providers such as Contractor Cover or insurance brokers can be your biggest asset when combing for a good deal. They know your business and what needs to be covered well. They know where you can save on insurance and will find the best price for your needs. After all, our job is to find you the most comprehensive policy at the most economical price for you.
All contractors will have different insurance risks and different needs. Not all the insurance above will apply to your, and there might be very specific insurance which we have not discussed that you do need. A dedicated professional such as Contactor Cover can assess your risks and act on your behalf to secure the correct policies in your interest. If you need help and are not sure if you are underinsured, contact Contractor Cover today to make sure you are not one of the 70% that won’t survive after a major claim. All of the information provided above is of a general nature.