"I'm Starting A New Business, How Do I Know When To Get Insurance?"
Different businesses have different needs. There's no blanket rule when it comes to deciding when or what type of insurance is needed. Here are just some things you can think about when starting your new business.
A big factor when deciding to get insurance, is to think about whether or not your business has any assets. This could be anything from property, machinery, tools, vehicles, computers, a large amount of stock and/or materials. Damage or loss to these resources could be very costly and put you out financially. When you start to accumulate valuable resources that are essential for your business, it is always a good idea to ensure these resources are protected.
As your new business starts to grow, you may find that you are increasingly providing advice to your customers, including about the products you sell. Some types of businesses, where providing professional advice is a core part of their service (eg, lawyers, accountants or engineers) would have Professional Indemnity Insurance, right from the get-go. Even if you are not in one of these professions, it is very important to analyse your current situation. If you find that you are providing casual advice to customers, you can protect yourself from potential litigation and substantial legal costs.
Given the rise of e-commerce and the increased use of online shopping- more and more aspects of business are done digitally. Emails, databases, websites are all at risk of being targeted by cyber criminals. They can target businesses through the use of viruses, ransomware and DoS (Denial of Service) attacks. Depending on your business, it may be beneficial to look into Cyber Insurance. Cyber Insurance can help to recover from these attacks including, removing infected software, replacing lost income and rebuilding databases.
Starting a business can be overwhelming and is definitely a lot of hard work (we've been there too!). If you have recently started a business, we congratulate you on all of your efforts! If you're looking into setting up your insurance or reviewing your current insurance plans, contact your local broker to ensure you've got the right policies in place to protect you and your business.
General Advice Warning
The information provided is to be regarded as general advice. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider relevant product disclosure statement(s) before making any decision to purchase this type of financial product.