Managing operational expenses is a complex thing, and it may be tempting to take on only the business insurance policies your state requires for this reason.

As a business owner, however, you may be putting your livelihood at more risk for doing the minimum where your company insurance is concerned. One uninsured accident can cost you more than your monthly or annual premium; it could cost your entire livelihood or career.

BizInsure wants to help you avoid this by providing you with policies that take your business model into account. After all, policies like business liability insurance are designed to help you by providing a fallback for accidents or situations that are out of your control.

When looking for an insurance policy for your company, keep the following info handy.

What is the most important business insurance?

The answer to this question will depend on several factors. These factors range from the industry your business belongs to, the number of employees your business has to the scope of your business operations. Some business insurance policies are designed specifically for specific industries, and some policies cannot be applied across the board for all businesses.

Let’s go into detail with a few.

Commercial Property Insurance

A Commercial Property Insurance policy covers potential financial losses to your business’s physical assets due to events such as fires, natural disasters, or thefts. Most small and mid-sized companies typically use this policy type to protect assets like equipment, furniture, or work appliances. Businesses leasing property may also be compelled to have this company insurance by the property owner as a safeguard against potential damages.

General Liability Insurance

Most small businesses and contractors have some form of General Liability Insurance because of the scope of liabilities it covers. Among these liabilities or risks are bodily injury and consequent medical expenses, as well as property damage and associated repairs, to name a few.

In some instances, insurance providers may expand or restrict the scope of your business insurance depending on your industry or risk exposure levels.

Professional Liability Insurance

Also known as Errors and Omissions (E&O) Insurance, Professional Liability Insurance protects businesses that offer services against claims that their services caused financial distress or bodily harm, either through errors or professional negligence. This type of insurance is essential for professionals, like doctors and accountants, for example, whose services typically involve suggesting to or advising their clients based on their professional expertise.

Depending on the industry and profession, professional liability insurance costs will vary – a doctor or nurse, for example, may have a higher premium than a graphic artist or freelance costume designer.

How do I choose which policies are essential for my business?

When shopping around for business insurance, it’s critical to mind the specific features of your business, industry, or profession. This is so you can choose a comprehensive policy that covers as many liabilities or risks as you feel is necessary to secure your livelihood against any claims.

Here are a few points to consider when deciding on your business insurance policy.

The scale or size of your business

There are insurance policies designed specifically for businesses that require staffing, such as Business Owners’ Policy (BOP) or General Liability Insurance. These types consider the size of your business to determine not only the scope of the policy but the subsequent premium as well. Generally speaking, the bigger your company, the higher your possible premiums may be.

Which industry your business operates in

Certain insurance types, like Workers Compensation Insurance or Professional Liability Insurance, have a more granular approach towards coverage. These insurance types target certain liabilities in a profession. For example, a medical doctor may be vulnerable to medical malpractice claims, so a Professional Liability Insurance policy covers any resulting legal fees or settlement costs arising from such claims.

Possible risks present in your business

Business interruptions are unavoidable, no matter how much we safeguard against them. For instance, we can’t predict the full severity of natural disasters, and the resulting property damages or loss of income could lead to bankruptcy in extreme cases, especially if your business isn’t insured. Policies like Commercial Property Insurance or Business Interruption insurance may help protect your finances by providing funds you can use to repair or replace your assets.

To this end, if liabilities are widely recognised in your business or line of work, identifying them and consequently getting the appropriate business insurance policy can help significantly protect you from losing your hard-earned funds in one fell swoop.

Is it possible to negotiate business insurance costs?

Yes, it’s possible to negotiate business insurance costs – but before you do so, you’ll want to be aware of what it means for your business.

In some Australian states, insurance policies are non-negotiable because you’ll need one or a few to be approved for a business licence. For example, workers’ insurance is required if your business is staffed.

Some clients may also prefer or even demand that your business have some type of insurance before they transact with you for various reasons. For home-based businesses or professions, clients may prefer those with declared and verifiable Sole Trader Insurance or Professional Liability Insurance policies over those without.

If you’d like to discuss your business insurance options, BizInsure is only a phone call, email, or message away. Our team will walk you through the benefits of each available policy and help you find a good fit for your career or business.

Don’t leave your business exposed to potential risks when you can protect it now with a BizInsure business insurance policy. Enquire with us today for a policy quote comparison.