An insurance policy

It is good business management to protect the assets of
your business (including the owner) against unforeseen
events. This protection usually comes in the form of
insurance.
An insurance policy may be broadly defined as a contract
under which the insurer agrees, in return for a premium, to
indemnify the insured for loss suffered as a result of the
occurrence of specified events which cause the
destruction, loss or injury of something in which the
insured has an interest.
Here is a list of some of the types of business insurance
available.
Building
Generally only required if you own the premises in which
your business is located.
NOTE: It is common for a tenant to be required to insure
plate glass against breakage in leased premises.
If you are conducting a business from your home, the
insurer of your home should be notified so that the policy
can be noted and the premium adjusted if necessary.
Contents
This should cover all plant, equipment, fixtures and fittings
as well as business stock.
Cash
It is possible to insure against theft of cash held on the
business premises, in transit or held at home.
Loss of profit
If your business is unable to trade, due to the occurrence
of an insurable event, this cover can provide for loss of
profits incurred during the period of non-trading. Of course
you will have to provide evidence of actual profits lost.
Public liability
Provides insurance cover against accidental injury to
clients, customers and visitors to your business premises.
This cover is considered essential to all businesses and
cover of up to $5M is normal for a small retail operation.
Product liability
This indemnifies the manufacturer and/or distributor against
injury caused by their product, or the use of their product.
Professional indemnity
Provides insurance protection against negligence for
professionals and experts delivering services, advice and
information to clients.
Motor vehicle
Vehicles owned and used by the business should be
insured, as would your own personal vehicles. If you are
using your personal vehicle in the business, the insurer
should be notified so that the policy can be noted.
Key person
It is common in small business for the successful operation
of the business to hinge on the well being of one person.
Insurance cover can be taken against loss of income, in the
event of injury, disability or death to the key person.
Workers’ compensation
Accident and sickness insurance cover must be provided
for employees through an approved insurer. Self-employed
persons provide accident and sickness insurance through a
private insurer.
Superannuation
It is important for all people to provide for their retirement
years, including business owners. Superannuation is
generally the vehicle used to provide for a retirement plan.
For detailed advice and information on the type and cost of
insurance to best suit your business, you should consult
reputable insurance agents or brokers. Alternatively, speak
to your Industry Association for referrals to an agent who
can provide the right insurance.
Insurance