Running your own business is rewarding but it can also be incredibly busy and there are times when it feels as though there aren’t enough hours in the day. For this reason, thinking about your business insurance might be at the bottom of your priority list. However, business insurance is essential so you’re protected financially and today we’ll be looking at why you need to have insurance in place for your business.
Offers peace of mind
The most important reason why business insurance is essential is that it offers you peace of mind that you’re protected financially when things go wrong. The last thing you want is to find yourself in a situation where you’re liable for thousands of dollars, or hundreds of thousands of dollars, only to realise that you don’t have the right cover in place. You can’t predict the future but you can be confident that you’re protected if you have business insurance in place.
If you’re trying to build a credible reputation for your business, having the correct insurance in place can go a long way to showing potential clients that you take risk management seriously. If you aren’t able to provide assurances that you have the right business insurance in place, many clients may become wary as they won’t be assured that you’ll be covered financially if something goes wrong. If you do have business insurance in place, have this fact displayed on your website and mention it to potential clients.
Satisfies legal requirements
Some forms of business insurance are not only important from a risk management perspective but are also a legal requirement. Workers Compensation Insurance is a legal requirement in Australia if you have employees and protects both you and your employees following a successful workers compensation claim.
Although other forms of insurance may not be mandatory, many clients will insist that you have certain forms of insurance in place, such as Public Liability Insurance or Professional Indemnity Insurance, before you commence work and this may be written into your contract.
Assists with risk management
As part of any business plan, you need to consider the potential risks that could occur and formulate strategies to address these risks. Your risk management and business insurance plan go hand and hand as many areas of risk can be covered with the right insurance policy. If you’re unsure which areas of risk need to be covered by insurance, you can speak to your insurance broker for more insight.
If you’re looking for business insurance in Perth, GSK Insurance Brokers can assist. We can identify your areas of risk to provide better analysis and targeting of cover. At GSK, we’re commercial insurance experts and have extensive knowledge and experience to make a difference to your business. We’ve helped hundreds of companies obtain business insurance across Australia and aim to preserve your success and protect your assets.