Preparations for Purchasing Business Insurance

If you are planning to start your own business, one of the most important things that you should include in your plan is insurance coverage. Without thorough research and preparation, purchasing business insurance can be a tedious task. Getting the right cover is always the smartest way to manage all the risks associated with your industry.

Know about the Level of Cover Needed
When you are starting a business for the first time, you might find it really difficult to figure out the extent of cover required to run it safely. In Australia, some of the covers are essential, while some others are not. Essential covers include professional indemnity, worker's compensation, personal insurance, public and products liability insurance, cover against theft, fire, and other natural disasters, and general property insurance. On top of that, you can also apply for income protection insurance, motor insurance, and key person insurance depending on the type of business. Most insurance companies will be happy to add a separate clause to the policy if their package doesn't suit your business needs.

Get Professional Help
Hiring an insurance broker is the right way to go if you are looking for the best cover that you can get. But make sure you choose one who understands the risks of your business and has access to several insurance companies. Some brokers will even do a risk assessment to design a package that meets all your needs. The best brokers in the country are members of the National Insurance Brokers Association (NIBA). They should also hold an Australian Securities and Investments Commission (ASIC) license. Before choosing a broker, you should also enquire about the qualifications, services provided, and fees.

Understand Important Insurance Terms
In order to make the right choice, it is vital that every business owner has a good knowledge about the common terms used in insurance policy. "Premium" refers to the amount of money that needs to be paid, while "excess" indicates the amount that needs to be paid when you make a claim. You will also receive a certificate of insurance which contains all the information about your policy including the details of cover, premium, policy number, and special conditions, if any.

Shop Around
If you want the best deal, always shop around before purchasing business insurance. Compare the policy offered by different insurance providers. You can also get great tips and advices from trade associations or other business owners in the same industry. Whichever cover you choose, make sure you are not under-insured.


Article Source: Finn Havelock